Oracle After Earnings, Microsoft Rallies, Adobe Disappoints

0:00brought to you by Apple Card. Apply for Apple Card and earn daily cash back on back-to-school purchases, including 3% back on everything at Apple. Subject to credit approval, Apple Card is issued by Goldman Sachs Bank USA Salt Lake City Branch, termsinmoreatappalcard.com. BOOM! BOOM! BOOM! BOOM! BOOM! Bloomberg Audio Studios Podcasts, Radio, News BOOM! The Stock Movers Report, your round-up of companies making moves in the stock market, harnessing the power of Bloomberg data. Carol Maser, Along with Tim Stanovak, Bloomberg News Market's live strategist, joining us also as well Tatiana Dorei, she's here in studio. Got to go about work all. This has certainly been in focus today. Yes, shares are lower here by 1% and 1% and has done a massive reversal here in today. Shares were higher by nearly 9% when the stock opened. And this was very after a very strong result in their fiscal first quarter cloncomputing business grew more than expected sales,

1:00more than double to over 7 billion in the quarter. Importantly, the company also disclosed another 30 billion in additional revenue booking that as... It was a strong report. It was a strong report reinforcing the AI demand story, which is really key as we see price war intensifying amid global competition in the AI space. But costs are also going up and that is sort of the twist and the story. Capix in the quarter, well above expectations. I looked it up. It was 28.5 billion in the quarter. A record in Bloomberg data going back to the 90s. So the stocks reaction really signals here that Capix worries are alive. They're there. Investors are watching and really worrying about the math of all of these investments. Okay, speaking of Capix investment, let's go to Microsoft. Yeah, another big story overnight in the AI space. The company is planning to more than triple its data center capacity and the aim here is to bring more global data centers to support 38 gigawatts of capacity by 2032.

2:03That is up from 12 today and just to give you a sense of size scope here. This would eclipse the amount of electricity for New York state using during peak periods. So that is massive capacity. So what? And we know, you know, capacity has been a constant constraint for this hyperscalers, but particularly for Microsoft, has suffered outages. It has led customers to take on new business. That was important due to their decision to pull back last year. Remember? Yeah. And that was all, you know, mid concerns. Is this a building or build out? Are they worth it? They're still at that point. And right now it is a decision that maybe apparently the air regretting, although the company has not confirmed those reports and have denied them instead sending us to their last press release and their latest capex guidance. Let's get to Adobe. What do you got on that one? In Adobe, the last mover of the day, higher by 2%, and also took traders a little bit to warm up

3:03to this report. Cheers. We're lower after the numbers hit. Perhaps also a little bit of a rising tide of equities lifting this stock here, but it was a pretty clear report for the third quarter of beating expectations on top, on bottom lines. It's revenue forecast. Slightly missed the midpoint of analyst expectations. That caused some worry earlier. But analysts have come out to say that the results suggest little disruption from AI tools. And that's key here because that is the big worry with this stock. Also, we have new CEO coming in in December. Lots to worry about. But crucially, we don't see a big warning signs that AI is really disruption software right now. This stock movers 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.com, and on Apple CarPlay and Android Auto with the Bloomberg Business app.

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