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00:00And right now we are two minutes away from the end of the trading day.
00:04Romain Bostic here taking you through to the closing bell with a global simulcast.
00:08It starts right now. Carol Masser and Tim Stenevich join us from the radio room.
00:12Caroline Hyde, the co-host of VTech, joins us as well as we now drumbeat to those results.
00:18Quarterly earnings out of the largest company in the world and probably, at least for right now, the most consequential,
00:24NVIDIA.
00:25Yeah, NVIDIA and looking at it actually trading off its highs of the session as we've just got a few
00:30minutes left in the trading session, but still up about one and a half percent today.
00:33Not just NVIDIA. We'll get a check on some of the software companies.
00:37Caroline, of course, following these closely, Salesforce reporting, Snowflake reporting.
00:42We'll get Zoom earnings after the bell as well.
00:45So, yes, today is all about NVIDIA, but let's not forget about some of those humble software companies.
00:50And maybe NVIDIA and Jensen Wang has a few choice words for software.
00:53And indeed, remember, he's been trying to convince the market that it's totally irrational, illogical to be selling them off
00:59and thinking AI is going to eat their lunch.
01:01But we've got a lot to hear from the CEOs of Snowflake and CRM of Salesforce to really prove that
01:06the negative, that they're not being disrupted in the way that they think.
01:09Well, this is what I am curious about, Caroline.
01:11I mean, we kind of know what the numbers are going to be.
01:13Sixty eight percent jump in revenue, 72 percent jump in adjusted EPS and a gross margin is 75 percent.
01:19That's phenomenal by any stretch of the imagination.
01:22Isn't that extraordinary for a $4.8 trillion company?
01:24I know.
01:24Normally, I mean, you would think, OK, if you post those numbers, the stock should pop 20 percent.
01:28But this is a stock that's up 700, 800 percent over the last three years, Caroline.
01:31I mean, what can Jensen Wang actually say that you think would materially be an upside for the stock?
01:37Margins.
01:38Can they improve on margins?
01:39Are they seeing Rubin Blackwell go along in terms of, well, the supply chain that they're seeing?
01:44And more broadly, what about China?
01:45Still the key question mark.
01:46Caroline Hyde in the co-pilot seat for us as we have a lot of tech earnings to parse here
01:51in the after hours trade.
01:52Let's walk through the numbers in the cash session with the S&P 500 higher by almost 60 points or
01:57eight tenths of one percent.
01:58The Dow adding 300 points or six tenths of one percent.
02:01The Nasdaq composite up about 1.3.
02:04Nasdaq 100, 1.4.
02:05The Russell 2000, Carol Masser, higher by four tenths of one percent.
02:09All right.
02:09Good stuff for Maine.
02:10Looking at the S&P 500, kind of an even split, guys, 258 names in the index to the upside,
02:17Caroline, 244 to the downside, one unchanged.
02:20And look at that for once.
02:21IT, information technology, actually an outperformer on the S&P 500.
02:24In fact, the Nasdaq 100 managed to push itself into positive territory today.
02:28We're currently seeing financials on a bit of a tear as well, up 1.7 percent.
02:31Communication services did well.
02:33And that consumer discretionary, Romain, that you were pointing out a little bit earlier.
02:36Absolutely.
02:37All right, guys, let's get to some individual gainers as we await some earnings to cross the Bloomberg Terminal.
02:42I'm going to go to one that was the number one gainer in both the S&P 500, Nasdaq 100.
02:47We're talking about Axon.
02:48It's the maker of tasers and also public safety software.
02:52They reported an adjusted EPS for the fourth quarter that beat the average estimate.
02:56So this one up remains 17.5 percent.
02:58We've got to go to Salesforce.
02:59Salesforce earnings crossing the wire.
03:01I'm going to start off with the forecast for the current quarter, the fiscal first quarter.
03:04The company sees revenue of about $11 billion to $11.1 billion, the low end of that range higher than
03:11the average of street estimates of about $10.99 billion.
03:14For the current quarter, or the quarter that just passed, excuse me, the company reported $11.2 billion, slightly above
03:20what the street was looking for.
03:22Adjusted EPS also came in above what the street was looking for at $3.81.
03:26Since the average of estimates was $3.05 billion, and Caroline, the company also saying that it plans to increase
03:31its share buyback authorization to $50 billion.
03:35And maybe, Tim, that is what the investor base wants to hear.
03:38If that's the proof point, look, believe in us.
03:40We're believing in our own stock.
03:41We think we're so beaten up, what, more than 40 percent in the last 12 months, we're going to be
03:45buying back to up to $50 billion.
03:46There, they're trying to perhaps tempt people to start to figure on catching a falling knife.
03:51And also trying to get people to think of Salesforce increasingly as an agentic AI company.
03:57Mark Benioff, chair and CEO, saying, quote,
03:59We've rebuilt Salesforce to become the operating system for the agentic enterprise, bringing humans and agents together on one trusted
04:07platform.
04:07And the more intelligence moves to where work happens, the more valuable Salesforce becomes.
04:12The question is, can it convince investors that it is a company for the AI era?
04:17You know, having said that, it's a stock that, as we know, has been under pressure, down almost 30 percent
04:22here in 2026 already.
04:24The stock is down about 50 percent since late December, or I should say late in 2024, December of 2024.
04:31So it has been pulling back dramatically.
04:34And now you can see the stock in the aftermarket down about 2 percent.
04:37This is despite increasing its share buyback authorization to $50 billion.
04:43And again, going to that first quarter revenue, $11.03 to $11.08 billion.
04:48That is above the street estimate of $10.99 billion.
04:51Not enough, though, to impress investors, at least in that early aftermarket trade.
04:55This also gets to the idea, though, too, of just how important the conference calls are actually going to be
05:01here.
05:02And I do kind of wonder.
05:03I mean, it's kind of dueling conference calls because both Salesforce and NVIDIA start at the same time.
05:08Caroline, who are you going to listen to?
05:10Hopefully we can spread across both.
05:12I'm going to be sitting next to you, Romain.
05:14I'm going to be dialing into what Ed's listening to on NVIDIA and what we're all listening to on CRM.
05:18But what I think is interesting is agent force.
05:20This is where we're seeing agents being deployed by CRM and what we're seeing in terms of the upselling, what
05:25we're seeing in terms of adoption.
05:26They say their average revenue run rate has reached $800 million, up 169 percent year over year.
05:32They've closed 29,000 deals, up 50 percent Q on Q.
05:35Is that enough to show that their offerings in terms of agentic AI is enough to secure the amount of
05:41money and the amount of seats that they need people to still keep on paying for?
05:45Well, Salesforce shares down about 2.75, 3 percent in the after hours.
05:50Trade desk shares down 10 percent in the after hours.
05:54Make that 12 percent at this point.
05:56This after the first quarter forecast missed estimates.
05:59First quarter revenue coming in at least at $678 million.
06:03The estimate was for $688.8 million.
06:07A first quarter adjusted EBITDA, this is the guidance, about $195 million.
06:13The estimate was for $222.7 million.
06:16Shares continuing to move lower, down about 12.6 percent in the after hours.
06:20Yeah, and that's on top of already about a 34 percent decline in shares of trade desk here in 2026.
06:26I should point out about 10 percent of the float is short, so any kind of negative, you know, maybe
06:33the shorts kind of have it right.
06:34But you're definitely seeing the stock down almost another 12 percent here in the aftermarket.
06:38Yeah, and it gets to this idea, too.
06:39I mean, we talk about the idea of what these ad tech platforms are doing and the idea of a
06:43lot of the money flowing away from some of the more single players in that space
06:47and to, I guess, some of those bigger tech companies that, of course, have their own already baked into it.
06:52It'll be interesting.
06:52That's actually a conference call I'd be interested to be a fly on the wall on as well.
06:55I mean, people are pretty positive on all of these companies.
06:59When you're looking at the analyst recommendations, 22 say buy on trade desk.
07:03Only three say sell.
07:04The price target is well above where they currently trade is some $46.
07:07So where are they going to be able to convince the market that you can start adding to these names
07:12amid the disruption in AI angst, let's call it?
07:15All right, we're talking a lot about technology.
07:16Let's go to a retailer.
07:18A little bit of lightness, perhaps.
07:20Urban Outfitters out with their results.
07:22Fourth quarter EPS, $1.05 a share.
07:24Fourth quarter just at EPS.
07:26That's coming in better.
07:27What the street was expecting, $1.43 a share versus $1.26.
07:31And fourth quarter comp retail segment sales up about 5.5%.
07:35That's a beat, too, in terms of what the street was expecting remain.
07:39And the stock's up about 1.5% here in the aftermarket.
07:41Let's go back to techs.
07:43Snowflake shares higher in the after hours trade here.
07:45The company saying that first quarter product revenue, in its words, will be in a range of $1.26 to
07:51$1.27 billion.
07:52That's pretty much on the nose of what the street was expecting.
07:55That's coming on the heels of a fourth quarter revenue of about $1.28 billion, slightly higher than what the
08:00street was looking for.
08:01For the full year, the company says expect about $5.66 billion in revenue.
08:06The street was looking for $5.54.
08:08The company also says adjusted operating margin for the full year, 12.5%.
08:13So, at least on the margins here, it looks like a relatively in-line quarter and a slight, slight guide
08:18higher for the full year.
08:19Let's check out Zoom Communications because, look, revenue beats both in its fiscal quarter reported and its full year guidance.
08:26But not so much if you're looking at the profitability.
08:28They're really seeing 2027 adjusted earnings per share coming at $5.77 to $5.81.
08:33Now, the market want to see $6.6.
08:35Zoom, though, did see that 2027 revenue will be in the range of $5.07 to $5.08.
08:40That was a beat compared to the expectations.
08:42And for their fourth quarter, we saw online revenue up 2.6% year-on-year.
08:46And you also saw a beat in terms of their revenue.
08:48But, again, earnings per share falling short.
08:50This is a company that's having to invest in itself, trying to, again, convince people that stick with our products,
08:55stick with the conferencing, stick with the AI that we've already integrated.
08:58But they're probably having to spend a bit on that.
09:00We're seeing cash and cash equivalents falling some 6%.
09:02Well, I'm looking at shares of Paramount Skydance down about 1.6%.
09:07We're getting some results from the company.
09:10Not everything at this point.
09:12In terms of that outlook, Paramount Skydance sees fiscal year revenue at $30 billion.
09:18A look back, fourth quarter year-over-year Paramount Plus revenue up 17%.
09:22Fourth quarter revenue coming in just above estimates at $8.15 billion.
09:27Fourth quarter loss per share from continued operations at $0.52.
09:30Fourth quarter operating loss at $339 million.
09:35Estimate was for a profit of $309.3 million.
09:38Shares down about 1.6%.
09:40The real story with this company, though, is does it get those assets from Warner Brothers Discovery or does Netflix
09:46win out?
09:46Shares down about 1.6%.
09:47All right, let's go to the company behind WWE and so much more, those live events.
09:52We're talking about TKO out with their results.
09:54Fourth quarter total revenue coming in slightly above the street, estimated $1.04 billion.
09:59If you go to WWE-adjusted EBITDA, that was better than the street was expecting, $165 million.
10:06UFC revenue, $401.4 million.
10:08Again, that was better than what the street was expected.
10:10And fourth quarter adjusted EBITDA coming in better than what the street was expecting.
10:14But stock's still down about 2.3% here in the aftermarket.
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