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Thumb Carol Master along with Tim Stanevik. Let's get to it with Bloomberg News Equities reporter Alexandra Semenova. Alex, it's an interesting market day. I am curious where you're going to start here.
Yeah, well, Tim just mentioned bitcoin, so we have to start with micro strategy. It used to be the case that holding bitcoin was an easy way for companies to make big money very fast, and now with bitcoin down about forty five percent from its ties in October, all of those same companies are really feeling the hit here. Micro strategy, or rather strategy after the rebrand, being a part of it. It is the original digital asset treasury company.
It has weathered, you know, severe sell offs anytime that bitcoin has, and right now it's really feeling the brunt of this. It used to have a premium of more than it's underlying bitcoin holdings. Now it trades a just a nine percent premium. And it's also expected to report results after the close today, and the expectation is that it will report a multi billion dollar loss in the value of it's bitcoin given the route that we've seen.
Looking at the stock, it's down fifteen percent today alone, down nearly thirty percent year today, So very brutal for micropok.
A real company, a real test of this model that really inspired so many other companies to go out and hoard different crypto assets, whether we're talking about bitcoin or ether, this idea of a data digital ass exactly.
Very so it's become like a direct proxy of Bitcoin's performance.
Yeah.
I feel like there's a period to where like almost every company was like wait, wait, you know, or we start to have these discussions back to they have something in terms of crypto or bitcoin on their balance sheet. I just want to point out Strategy at its high back in twenty twenty four, was almost a four hundred and seventy four dollars share stock and now it's at one oh nine and change, so unbelievable, quite a drop. Okay, Number two.
Number two is alphabet. This one is an interesting one because even though the stock is lower today a lot of people were disappointed with that capex number, there's actually a lot for investors to be excited about. In this report, so the company did top up projections for quarterly revenue, and specifically in that Google Cloud unit, its revenue jumps forty eight percent to a whopping seventeen point seven billion dollars That handily topped Wall Street estimates of about sixteen
point two billion dollars, so really solid number. There are also Gemini its AI model. It is rapidly reaching new users. The thing that disappointed investors is that CAPEX number. It will reach as much as one hundred and eighty five billion dollars, which compares to about one hundred and twenty billion dollars that Wall Street analysts were expecting, So that
is a lot more. And for twenty twenty six, that CAPEX spending will total more than what it spent in the prior three years combined, So a lot of money. But at the same time, COEO Sindar Pachai says that these costs are necessary and they're actually seeing that their business monetize these AI investments. Obviously he's a little bit biased, but we also had Jeffrey's analysts say the same thing, that AI is actually paying off for Google.
I mean, it's pretty amazing to see the growth in the active Gemini users going just increasing so much just over last quarter, right, and that's for the standalone Gemini app, not just for like anyone using its AI features in a different platform like in Search or in Gmail or something.
Yeah.
Absolutely, and also worth noting that the bar was just incredibly high into these big tech companies.
I think it's also interesting. I mean, this dog bounced around so much in the aftermarket when it reported. It's been done as much as eight percent or almost eight percent today, so it has really come off of those lows today in a big way. So it's interesting as investors make their way all right from Alphabet to where sd.
Latter just taking a very very big hit today actually seeing it's worst decline on It is down twenty one percent right now. This is after Even as the company did boost its outlook, it just wasn't enough for investors who were expecting more from their turnaround effort under their new CEO. The company narrowly beat Wall Street's expectations for revenue and adjusted earnings per share in its most recent quarters. They actually reported good growth in skincare products, so people
were buying Lamaire and the ordinary. They were also buying up a lot of their fragrances, including tom Ford's perfumes and Lalava, which, by the way, is just a testament of the strength of the consumer. Because tom Ford Perfumes are something like three hundred dollars. It's expensive, but that segment did well, and the company also narrowed its outlook range for the net revenue growth for the period ending in June. It now forecast growth of three percent to five percent.
The 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 late this 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.