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00:00And right now we are two minutes away from the end of the trading day.
00:04Romain Bostic alongside Katie Greifeld taking you through to that closing bell with a global simulcast.
00:09Carol Vassar, Tim Stenevich, they join us from the radio booth as we bring together our audiences across all of our Bloomberg platforms,
00:15including our partnership with YouTube.
00:17Yesterday, guys, we faced a fire hose of earnings.
00:20We get quite a few more today, including out of some big names like Apple and Amazon.
00:26I thought you maybe forgot for a moment.
00:28I almost did.
00:30Hey, listen, there's a lot coming at us and it's tough to keep on top of it.
00:36But these are two big ones and the AI story will certainly be important.
00:39And there's a few other things for those issues, as well as how well the iPhone is selling.
00:43Right, Tim?
00:44Yeah. Speaking of that, Apple up six tenths of one percent as we speak going into this print.
00:48Amazon down three tenths of one percent on the Amazon side.
00:51Katie, obviously interested in anything they say about AWS,
00:54but also other thinking about the holiday shopping season and the consumer actually doing that buying.
00:58Yeah, absolutely.
01:00A really interesting read on the consumer, even though it's AWS, of course, that investors want to hear about,
01:05especially because it's been perceived recently to maybe be losing some market share to its cloud rivals.
01:10So those are some of the concerns that they're going to try to put to bed after the close today.
01:15Yeah, and it gets to this idea, too, of sort of what investors will reward.
01:19And I think the trade today where you had Meta and, of course, Alphabet come out with their earnings and Microsoft, I should say,
01:26all sort of basically saying we're still burning cash like crazy.
01:29Meta gets hit.
01:30Microsoft gets hit.
01:32Alphabet, well, it's up about three percent here into the close.
01:35Maybe they're just monetizing it better, you know?
01:38I don't know.
01:38And I should just point out we get a slew of earnings today.
01:41It's not just Apple and Amazon, but it's names like Coinbase, Roku, Gilead, Reddit, Atlassian, GoDaddy, Strategy, Warehauser, Zillow, and Twilio.
01:50The closing bell is here in New York.
01:52It is going to be red across the screen for most of the major indices here in the U.S.
01:55The Dow down two-tenths of one percent.
01:58The S&P down one percent even.
02:00The Nasdaq indices down about one and a half percent.
02:02The Russell 2000 down about eight-tenths of one percent.
02:05And the one bright spot out there is actually the Dow transports, Carol Masser, up nine-tenths of one percent.
02:10That's kind of fascinating.
02:11All right, I'm going to go back to the S&P 500 as I normally do.
02:14235 names in that index, folks, gaining ground on this Thursday.
02:19266 to the downside.
02:21Three, Katie, unchanged.
02:22All right, you take a look at the sectors.
02:23There's not looking too good here.
02:26Only three sectors in the green.
02:28You can see a lot of pain coming through the tech sector on this day.
02:32In terms of what did well, real estate, which is a little bit curious, of about seven-tenths of a percent,
02:36financials and health care, some of your loan outperformers on a day where really it seems like a lot of the market wanted to fall.
02:44All right, let's get to some of the individual gainers.
02:46A lot of red there on that screen.
02:47But Google, finishing off its best levels of the session, still good for a gain of 2.5 percent.
02:52And we got Amazon out.
02:56Amazon earnings crossing the wire right now in the third quarter.
02:59We're going to start with Amazon Web Services.
03:01Net sales for that division, $33 billion.
03:05That's light.
03:06The street was looking for $32.4 billion.
03:09So a miss for Amazon Web Services.
03:11As far as total sales for the company, that came in at $180.2 billion.
03:16That is a beat.
03:17The street was looking for $177.
03:20We'll just round it up to $178 billion.
03:23EPS side, $1.95.
03:25The street was looking for $1.58.
03:28And operating margin coming in light at 9.7 percent.
03:30The street was looking for 11.1.
03:32So just to round up here, operating margin is a miss for the quarter.
03:36And Amazon Web Services net sales are a miss, though top line sales, as well as the full
03:41bottom line adjusted EPS, are a beat.
03:44You see the shares there moving up about 8 percent.
03:46Yeah, absolutely.
03:47And you take a look at the press release.
03:49Andy Jassy, president and CEO of Amazon, talking up the strong momentum and growth across Amazon
03:54as AI drives meaningful improvements in every corner of our business.
03:58Some comments on AWS, too.
04:00Andy Jassy, saying that AWS is growing at a pace we haven't seen since 2022, re-accelerating
04:06to 20.2 percent year over year.
04:08And you can see maybe some of that being expressed in the shares right now.
04:11And we've got a forecast coming out now, guys, here on the fourth quarter.
04:14Net sales, the company saying that it's going to see a range of about $206 to $213 billion.
04:19The street was looking for roughly about $208 and change.
04:22So basically guiding around what the street had already sort of priced in.
04:26As far as operating income for the current quarter, the company says expect $21 to $26 billion.
04:31So a wide range.
04:33The street was looking for something in the middle of that of about $23.8, Carol.
04:37So Katie looked at the commentary from Andy Jassy on AWS.
04:42On the store side of things is what I'm looking at right now.
04:45Andy Jassy calling out expanding same-day delivery of perishable groceries.
04:49They've expanded that to over 2,300 communities.
04:51They'll do that by the end of the year.
04:53They plan to double the number of rural communities with access to Amazon's same-day and next-day delivery.
04:58Still looking for any commentary on the consumer and how they're feeling.
05:01And, look, we're going to know.
05:02We're going to get a lot of questions about those layoffs that we learned about earlier this week as well.
05:07AWS growing at a pace we haven't seen since 2022.
05:10There's some commentary from Andy Jassy over at Amazon.
05:13Man, that stock, Amazon, is up 10% here in the aftermarket.
05:18So investors liking what they got here, Katie.
05:20Yeah, absolutely.
05:21Significant for Amazon, you consider that.
05:23Relative to its own history, it's the cheapest among the big tech names going into that print.
05:28But let's take a look at Roku shares coming through.
05:31Full-year net revenue forecast meeting estimates here.
05:35Actually, they boost that full-year net revenue forecast.
05:38They met their estimates on the look ahead.
05:40But you can see that their shares are falling 10% post-market right now.
05:45They see full-year net revenue $4.69 billion.
05:48They had seen $4.65 billion.
05:52The estimate had been for $4.66 billion.
05:55But still, you can see the shares really taking whack in the after hours, now down 14%.
05:59Yeah.
06:00I just want to point out, too, just real quickly here on Gilead.
06:03Gilead actually out with its results as well.
06:05It looks like a sort of softness on a couple of key measures.
06:08But let's go back to Amazon here because the shares continue to get a strong bid here.
06:11The company now saying that it can re-accelerate AWS growth to 20.2% year over year.
06:19Though we should point out in the most recent quarter, growth in that unit was already about 20%.
06:23So we'll try to get you some more details on that.
06:25The company also talking about the cost for some of the layoffs, saying that it is estimated that there were about $1.8 billion in severance costs in the most recent quarter, as well as $2.5 billion in costs related to a legal settlement with the Federal Trade Commission.
06:42Okay, but that was the most recent quarter, so that doesn't account for what happens in the current quarter.
06:47I'm getting more numbers here from Amazon.
06:49Worth going over some of these.
06:51They're worth repeating.
06:52Net sales for the third quarter, up 13% year over year to $180.17 billion.
06:58Online stores net sales up 9.8% to $67.41 billion.
07:04The company is saying that subscription service net sales excluding FX up 10%.
07:08AWS net sales excluding FX up 20%.
07:11Earnings per share, $1.95 versus $1.68 quarter over quarter.
07:18Operating income coming in, $17.42 billion versus $17.41 billion year over year.
07:25The estimate, $19.72 billion.
07:27All right, Zillow dropping in the aftermarket.
07:29Let's go to the numbers.
07:31Third quarter revenue, folks.
07:32That's a beat, $676 million.
07:35The estimate on the street was $670.9 million.
07:38Third quarter adjusted EPS, two pennies better, $0.44 versus an estimate on the street of $0.42.
07:44The fourth quarter outlook, this is always key.
07:48Company, Zillow, seeing fourth quarter revenue, $645 million to $655 million.
07:53So that, too, is above the street estimate of $644.3 million.
07:58And mortgages revenue, $53 million.
08:01That's above the estimate of $50.2.
08:03But nonetheless, Zillow down about 1% here in the aftermarket.
08:07I just want to, we've been talking about the rapid rise in shares at Amazon.
08:11Amazon, not the best performer in the after-hours trade.
08:13It is Atlassian.
08:14Ticker team shares up 12% in the most recent quarter, its fiscal first quarter.
08:19The company came in with a big beat on the bottom line, $1.04 share for EPS.
08:23The street was looking for $0.84.
08:25Cloud revenue coming in above estimates, too, at about $998 million.
08:29And the company guiding for its fiscal second quarter, the current quarter, saying that revenue overall will be about $1.54 billion above street estimates.
08:39And it sees cloud revenue in the most, in the current quarter, year over year, rising 23%.
08:45Okay, I'm looking at Coinbase, shares higher by just about 1% in the after-hours.
08:50The third quarter total revenue coming in above estimates ever so slightly, $1.87 billion versus estimates of $1.8 billion.
08:58Coinbase third quarter trading volume coming in just shy of estimates at $295 billion.
09:03Third quarter subscription and services revenue coming in above estimates at $747 million.
09:09Third quarter transaction revenue coming in above estimates at $1.05 billion.
09:14Shares not moving too much in the after-hours, bouncing between gains and losses, down just about one-tenth of 1%.
09:19Interesting that trading volume missed on expectations for Coinbase.
09:23So you think about all the volatility that we've seen in Bitcoin and crypto overall, but not exactly translating into big volumes for Coinbase, at least relative to expectations.
09:32Let's talk about Reddit, though, getting those numbers out.
09:34Their third quarter daily active users, that figure actually beat estimates, coming in at $116 million.
09:41The estimate had been for just over $114 million.
09:44You can see the reaction in shares right now.
09:47Then you think about the third quarter net income, that measure, big beat there, $162.7 million.
09:54The estimate had been for $104 million.
09:56So a beat for Reddit when it comes, of course, to daily active users, a very closely washed metric, and also their net income shares up, 11% in the after-hours trade right now.
10:06All right.
10:06So movement by Twilio as well, the cloud computing platform.
10:09This company talking about the outlook, seeing fiscal year adjusted operating income of $900 million to $910 million.
10:17That is above what the street is looking for.
10:19The estimate is $867.9 million.
10:22Also fiscal year organic revenue.
10:25They're looking for up 11.3% to up 11.5%.
10:30They had seen 9% to 10% growth.
10:33So, again, we're seeing that one pop, remain almost 6% higher here in the aftermarket.
10:37And as we look at some of the big gainers in the after-hours trade, keep an eye on Floor & Decor, the home floor company, if you will,
10:45saying that it's going to elevate its president to CEO Bradley Paulson, who had been president of the company for some time,
10:51will be taking over as CEO for Thomas Taylor, who will be elevated to the chairman role here.
10:56Those shares up 7%.
10:57Hey, just want to go back.
10:58I'm sorry, Romain.
10:59I just want to go back to Amazon, if I may, which has been popping here in the aftermarket.
11:03One of the things that investors were looking for is, too, their investments in Anthropic, a key rival to OpenAI.
11:10Third quarter 2025 net income includes pre-tax gains of $9.5 billion included in non-operating income from their investments in Anthropic.
11:19So, again, this is something that is certainly key and will probably come up on that call.
11:24All right, guys, that is a wrap.
11:25All right, guys.
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