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Let's take a look at some stocks on the move today. We're joined by Bloomberg News Process that reporter Emily Graffeo. Emily a lot moving in the out hours.
We have a lot of the big tech stocks reporting earnings. So let's start with Microsoft Tiger MSFT. This stock was down as much as four percent in after hours. Now it's only down about one, well two point five percent in just the first hour of the post market. The earnings, EPs and sales were above estimates, and then the cloud service revenue did beat average the average ANELES estimates, so revenue for the first quarter seventy seven point six billion
versus estimates of about seventy five. The EPs also came in above. I mean, overall here the stock is down, but when you consider the headlines that we're getting out of some other tech companies for this earnings, I would say, so far, so good for Microsoft first quarter.
As you said cloud first quarter, as you're another cloud revenue x currency up thirty nine percent. The estimate was thirty seven point one percent. Our own ana agronosig that's a good number he did.
Yeah, he's out with a note and he's going to be listening on this call, but out with a note right now. It says Microsoft's fiscal first quarter capital spending including lisas came in at thirty five thirty four point nine billion, much higher than CONSEETSUS thirty point one billion dollars. And though this metric may raise concern for some, we see it as a signal of rising AI workload demand. That number is good news to honorog in the team.
And I guess as long as the demand is there, right, like, the spend makes sense. Where do you want to go next?
Okay? Google?
Okay, so ticker Gooogl. We're talking about Alphabet here, the parent company of Google.
Rising.
It was up five percent, it is now up. I know it's moving around a little, it's moving around a lot. Still, it's still twenty five percent.
Yeah.
In the post market reported quarterly sales and beat analysts estimates. We were talking about Microsoft's cloud unit, but the cloud unit over at Alphabet also doing well, which is growing as AI startups seek Google support and computing power. So the revenue for the third quarter beat estimates, coming in at one hundred and two point three five billion. The third quarter EPs also beat estimates two dollars eighty seven cents a share, and they boosted their full year capex projection.
So they see fullyar spending on capital expenditures ninety one billion dollars to ninety three billion dollars they had seen eighty five billion.
This is all on that continued.
Spending on AI data centers that they need to do and custom chips. This is the big story I would say of tech stocks in twenty twenty five, of like, how much are you spending on AI? When is it going to pay off? What exactly are you buying? What are the projects?
So listening for more of those markets.
Well, sometimes investors are cool with spending money on this stuff. Sometimes they don't react necessarily the way you want them to if you're long a stock.
Yeah, so sometimes they don't.
I think we're all thinking of Meta here Tickerneta. That stock is down over seven percent after reporting earnings, and this is coming after Meta said it expects total expenses to significantly increase in twenty twenty six as the company has to spend on data centers and other equipment to fuel the efforts in AI.
You have to wonder if there were some specifics.
About the spending plan that maybe investors are picking up on that it was different, that they didn't like that versus Google Googles. But yeah, I mean it's a bit confusing here to see the stock down on this news and then Alphabet obviously doing well on their promises to spend more on AI.
Yeah, it's kind of fascinating, right, like the stories being told by each I mean, keep in mind, Meta is up almost thirty percent here in twenty twenty five, Alphabet is up about forty five percent year right in twenty twenty five, and like, what's Microsoft? Microsoft in is up almost thirty percent this year. I mean, all these guys have been on fire.
And we know that, and we also we are getting more headlines out of Meta that the company reported third quarter net income of two point seventy one billion, which included a non cash income tax charge of fifteen point nine billion due to the implementation of the tax bill that was signed into law in July. So again, this is something that I don't think investors were expecting out of the earnings, so could be weighing on the stock as well that they're reading headlines about a tax charge
and these headlines about expenses increasing. So at least for the postmarket, that stock is down after those earnings.
I will say too.
We're getting some calls on the live blog, Meta assuring analysts on the call that it still expects significant cash tax savings for the remainder of the year despite the hefty tax charge they are talking about. Zuckerberg signaling that Meta may have some news coming on its AI models and products, saying that his team has been heads down working on the next generation and that he's looking forward
to sharing more on that over the coming months. For those who are on radio right now, Tim is playing around with his glasses.
Because that's what Mark Zuckerberg thinks the future is. He may have renamed the company Meta Platforms, but he's really leaning into augmented reality and virtual reality and meta ray bands. Yeah, called it out and then release, Yeah, you're not wearing them.
I'm not, but you know it is fun if a friend is wearing them and then they take a photo of you and it's like.
Oh, Sebastian, one of our producers does that at some of some our events. It's pretty cool.
Yeah, he likes those meta ray bands. Mark Zuckerberg saying on the call that he's investing in computing capacity based on his most optimistic forecast for achieving super intelligence.
Yeah, and this is like hundreds of billions a superinturigence come of a cave.
The Stockmover'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.