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Let's take a look at some stocks on the move today. I'm Nathan Hager, joined by Bloomberg Stan Curtis. On another very busy morning for earnings. The attention continues on the big tech names. Of course, two very different reactions to big spending from Meta Platforms and Microsoft. Dan, good morning, Good.
Morning, Nathan. You hit a nail on the head with that. It's just the difference in reaction this morning between the two tech giants, with Meta up eight percent, Microsoft down seven percent. Says so much about the markets these days. So both companies came out reported earnings and sales that beat estimates. But here's the difference. Microsoft as Zoo sales came out just above estimates, but despite the beat, it's
still seen us somewhat disappointing. That said, the spending was higher than expected from Microsoft, with over thirty seven billion dollars being invested in the past quarter. That leaves Wall Street questioning the return on Microsoft spendings. The capex is growing more than expected, and the sales are not growing by the same level. That's putting the stock on the back foot this morning. Meta, on the other hand, different story.
The company is giving a strong forecast for the current quarter and is expecting fifty five billion dollars in sales this quarter. It's leaning on its AD business for that, and it is spending big. It plans to spend up to one hundred and thirty five billion dollars in capex this year. But the core business is seen supporting the AI spending spree. That's why Meta is up eight percent today. Microsoft is down seven percent in the pre market, So just two sides of the same coin.
Yeah, we also heard from Tesla. Of course, investors seem to like signs of a pivot away from their core business.
That's right, Tesla. We typically come on and call it a car company. I'm not sure how much longer we'll be able to do that. Those shares are up two and a half percent in pre market. Top line missed, bottom line did be in fourth quarter. But the big news about this is the company is doing a bit of a reshuffle. It's going to spend twenty billion dollars to reshuffle its factory it's discontinuing two of its oldest vehicles, the Model S and the Model X, to make room
for building its Optimus humanoid robots. It's increasing bets away from the cars, pivoting towards its EV business, focusing on AI and robotaxis. Investors cheering that this morning.
Yeah, we've got lots more earnings to get to this morning, and a lot of these even though their industrial names seem like they're driven by the AI trade as well. Tell us more about what we got from Dow this morning.
Yeah, So Dow Chemicals Company announced the will terminy about four five hundred rolls out of nearly thirty five thousand employees. It's looking to simplify and streamline its operations, and as you said, this does tie back to AI. It's going to leverage AI and automation as part of the plans. So through this it's looking for two thirds of the benefits to come from productivity, the recipe driven by growth.
Company did also announced fourth quarter sales that were just around estimates, but those job cuts really taking the headlines this morning. That has left the stock down three percent in pre market.
And we also heard from a Caterpillar this morning as well. What's the story there.
Yeah, again AI. Typically I hear Caterpillar and I think of these big yellow tractors, but it actually makes equipment that's been a thing from the AI boom. So it posted fourth quarter earnings of five dollars and sixteen cents of share, ten percent above estimates. That's driven from the power and Energy unit. If you haven't heard about that before, it's because it's been a relatively sleepy unit, but it's become the largest and fasting growing segment as it sells
power generators, gas turbines, and engines to produce electricity. That's helping within this whole data center build out boom.
Just time to tell us about earnings from International Paper, Dan.
Yeah, so International Paper, we are hearing that that company may actually split off its European business. It's the stocks is up nearly four percent in pre market right now. So, according to someone familiar with the matter, it could split out spin off its European business. It's seen strong growth in Europe, has got two point three billion dollars in the third quarter from the region, up nearly three hundred million.
This stock mover's report from Bloomberg Radio check back with us throughout the day for the latest roundup of companies making news on Wall Street, and for the latest market moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, Bloomberg dot com, and on Applecarplay and Android Auto with the Bloomberg Business app.