Super Micro Slumps, Tesla Plunges, Intel Rallies on Upbeat Forecast - podcast episode cover

Super Micro Slumps, Tesla Plunges, Intel Rallies on Upbeat Forecast

Oct 23, 20254 min
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Episode description

On this episode of Stock Movers:

- Super Micro Computer (SMCI) which emerged as a favorite stock among artificial intelligence-obsessed investors last year, unexpectedly issued first-quarter guidance on Thursday that fell far short of Wall Street’s expectations. The server maker is now expecting to report roughly $5 billion in revenue for the first quarter ended Sept. 30, the San Jose, California-based company said, citing order “upgrades” that pushed some sales into the second quarter. Analysts had projected about $6.5 billion. The company’s shares slid as much as 7.6% in New York.

- Tesla (TSLA)'s profit plunged despite a record quarter of vehicle sales, reflecting ongoing strains on the automotive business that Chief Executive Officer Elon Musk is shifting focus away from. Musk spent much of Tesla’s third-quarter earnings call discussing ambitious but opaque initiatives, including humanoid robot and artificial intelligence programs, and also pleaded with investors to back his trillion-dollar compensation package. But he offered few details about how Tesla will revive its core business selling electric vehicles after a 40% drop in operating profit. Tesla shares dropped 3.9% at the start of premarket trading Thursday in New York. The stock is up almost 9% for the year, trailing the S&P 500 Index.

- Intel (INTC) shares surged after the chipmaker returned to profitability and gave an upbeat revenue forecast, suggesting that it’s making progress on a long and challenging comeback attempt. Fourth-quarter sales will be roughly $13.3 billion, the company said in a statement Thursday. Though that was just below Wall Street’s average estimate, some analysts were still including revenue from a unit that Intel just spun off — money that wasn’t part of the company’s forecast.

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Transcript

Speaker 1

Bloomberg Audio Studios, Podcasts, radio News.

Speaker 2

The Stock Movers report, your roundup of companies making moves in the stock market, harnessing the power of Bloomberg Data.

Speaker 1

I'm Carol Masser along with Tim Steneviek. Let's get to some of the stocks on the move in the Thursday trade. We are joined by Bloomberg TV Market's corispondent Noura Melinda. Hey, what are the names that's on your radar today? Super Micro Computer ticker SMCI.

Speaker 2

What do you got from?

Speaker 1

Yeah?

Speaker 3

So super Micro ended lower at the market close today, down as much as eight point seven percent. This is a stock that emerged as a favorite for a lot of those enthusiasts who were into AI, but it unexpectedly delivered forecasts for first quarter guidance that fell short of the Wall Street estimate here, So we were seeing shares falling at the closing bell here. Really just about demand AI demand here, and that's not something that the street was expected here.

Speaker 1

Yeah, Stack was down with eight point seven percent in today's session, so we definitely saw some reaction throughout that. I mean, it's still up about fifty seven percent.

Speaker 3

Year yea day. Definitely important to note you're seeing a really strong year for this company. Nonetheless, all right.

Speaker 1

Let's get to Tesla ticker TSLA.

Speaker 3

Yes, Tesla's shares ended higher at the closing bell, and this is interesting because we did see them selling off throughout the trading day, but they ended up reversing at market close up about two point three percent. And this is after they reported third quarter earnings. Here. Of course, we know Elon Musk used the end of the earnings call to essentially lead to investors to really back this one trillion dollar compensation package that he's really been pushing here.

So it's interesting to see a bit of that reversal here. But if you look at shares of Tesla, they're up about eleven percent so far this year.

Speaker 4

All right, what else is on your radar?

Speaker 3

Looking at CACI? Of course, this is a government it contractor searching for its best day since twenty twenty. This is ticker very easy here, CACI. So it ended jumping as much as twelve percent. This is the best day in the highest level ever here. And so we did

see the first quarter adjusted EPs topping expectations. We had William Blair analysts coming out saying that the results and the reiterated outlook really reflect how its business has largely been left unscathed by Doge headwind, which of course I haven't heard that in a while Doge, but I mean that is something that was a really big concern here for a lot of these government related contractors, and it seems as though, according to William Blair at least, that

this company might be out of the woods with that one.

Speaker 1

Remember when every day I felt like we were talking about dosh right right.

Speaker 4

Well, speaking of the US government, the largest single shareholder in Intel is the US government.

Speaker 3

Intel Intel shares definitely in focus right now, and we are seeing some activity in the after hours trade this after Intel gave an upbeat revenue. This really driven by personal computer demands here, and this is really boosting a lot of optimism about a potential comeback story years you called out tim the government taking a stake in this company, so it's really been on the eyes and on the

mind of investors so far in recent months. Shares of the company up about ninety percent so far this year, so some quite sellar performance so far.

Speaker 1

We've been an honorable mention after the close, right, Yeah, let's do forard that company reporting earnings after the bell today, up five percent in the after hours.

Speaker 4

Ford expecting a private hit of as much as two billion dollars after a fire at a key supplier of aluminum for its F one fifty. The company now expects full year adjusted earnings before interest in taxes of six to six point five billion, down from as much as

seven point five billion under its previous guidance. Fords CEO Jim Farley on Bloomberg Television with Romaine Bostik and Matt Miller, talking about how he was grateful for the tariff pullback slightly and the less of a hit, that the company will.

Speaker 1

Take more reasonable level, more reasonable.

Speaker 4

Level, and then also saying that that fire at that supplier, that will all be resolved by next year.

Speaker 1

Yeah, which has certainly been a big hit as of late, but some recovery then into twenty twenty six.

Speaker 2

The Stockmovers 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,

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