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00:00And right now we are two minutes away from the end of the trading day. Romain Bostic alongside Bailey Lipschultz
00:06in today for Katie Greifeld. As we take you through to that closing bell, it's a global simulcast. Carol Masser
00:11and Tim Stenevig join us. Welcome to our audiences across all of our Bloomberg platforms, television, radio, our partnership with
00:17YouTube on a very interesting day here in the market. Carol Masser, 24 hours removed from what were blockbuster results
00:25out of NVIDIA and well just a few minutes removed from what is actually going to be one of its
00:29worst days in a while. Yeah, pretty significant and definitely weighing on those major equity averages. Having said that, I
00:35keep kind of going to the S&P, which is down just shy of 40 points. And you really do
00:40have a lot of names despite that overall average, more than 340 that are actually gaining ground today. We're going
00:48to get into some of them, but I actually had some good gainers to choose upon. Oh, we're going to
00:51have to wait for those. High expectations. I'm sure you'll have something to add. I count on it. The big
00:57narrative is about, okay, what's happening
00:59with the AI trade? We'll actually get another check of that when we do hear from Dell after the bell
01:04today and, you know, get an idea of what demand is going to look like. So we're expecting those numbers
01:09to cross and that could, you know, help inform us a little more.
01:11I'm also interested to see some of these software companies, you know, your NetApps, Autodesk, Intuit, and a few others
01:17also reporting as well. And we're going to get to round that out too with a couple of, I guess,
01:22consumer-facing companies, including one company that's been under pressure for a while, and that's Sweetgreen.
01:26Yeah, we've got a lot of companies that have been under market selling pressure, but the opportunity with earnings, Romain,
01:31as you mentioned, to kind of right that ship, it'll be interesting to see what management teams say as these
01:36AI jitters hit at software companies.
01:39All right, well, we'll get the closing bells in New York. We should point out the S&P actually basically
01:44opened flat on the day. It actually did very briefly, very briefly dip into the green, but it's going to
01:50end the day.
01:50It looks like down roughly about 37 points as we wait for these numbers to settle. That's going to be
01:54a loss of about five-tenths of one percent.
01:57The Nasdaq composite is going to lose about 270 points or 1.2 percent. The Dow Jones Industrial Average, we'll
02:03just call it unchanged on the day.
02:05And, Carol, the Russell 2000 higher on the day by about a half a percent.
02:09All right, as Romain predicted, we do have some application software companies reporting into it, out with its results.
02:15Second quarter adjusted EPS, that's a pretty big beat, $4.15 a share versus the street estimate of $3.69.
02:21Second quarter net revenue, top line, $4.65 billion. That, too, was a beat. The street was looking for $4
02:27.53 billion.
02:28Second quarter adjusted operating income, $1.55 billion. Again, better than what the street was forecasting, $1.4 billion.
02:36And we are getting something when it comes to the outlook.
02:39Intuit still sees fiscal year revenue at $21 billion to $21.19 billion.
02:43The street estimate is $21.25 billion. So it looks like it's raining it in a little bit.
02:48And still sees fiscal year adjusted EPS, $22.98 a share to $23.18.
02:54The street estimate is $23.19. Stock down one and a half percent.
02:58I'm really curious to see what they say on the conference call, particularly when it comes to the rollout of
03:01these AI tools that everybody thinks is going to hit them.
03:04They kind of flick at that in the release, talking about that they are, quote, in a new category of
03:08the intersection of AI and human intelligence.
03:11So I guess the big question is, does that actually benefit them in the long run?
03:14Right.
03:15I want to take a look at what's going on with Autodesk.
03:18Shares of the company makes PC software, multimedia tools.
03:23Fourth quarter adjusted earnings per share beat estimates.
03:26Shares up 3.2%.
03:27First quarter revenue forecast did beat estimates as well.
03:31As far as those numbers look, first quarter adjusted earnings per share coming in $2.82 to $2.86 is
03:37what that outlook looks like.
03:39First quarter revenue, the outlook there, $1.89 billion to $1.9 billion.
03:45That beat estimates of $1.84 billion.
03:48Look backward, fourth quarter net revenue coming in above estimates at $1.96 billion.
03:54Shares in the after hours bouncing around but unchanged as of now.
03:57This is a stock, Tim, that's still down about 21% so far this year.
04:02So, again, earnings kind of giving investors something to chew on, but still not much follow through, at least as
04:07it relates to Autodesk, which is down, call it 2%.
04:10All right.
04:10Also keep an eye on NetApp.
04:11The share is up about 6% in the after hours trade.
04:14Data management software is the game.
04:16Adjusted EPS in its fiscal third quarter, $2.12 a share.
04:20The street was looking for $2.06, so a beat there in line on the revenue side at around $1
04:25.17 billion.
04:26The company says that for the current quarter, its fiscal fourth quarter, it sees revenue in a range of $1
04:31.8 to $1.95 billion.
04:33The low end of that range is right on the nose of the average of Wall Street estimates.
04:37The shares right now basically unchanged on that news.
04:40I want to go back to Intuit because now we're seeing the stock actually rally more than 2% here
04:44in the aftermarket.
04:45We know it's been getting hammered, not in a good way, down about 40% here.
04:50Is there a good way to get hammered?
04:53Explain, girl.
04:54All right.
04:55It's been a rough year in 2026.
04:56Stock's down about 40% so far this year.
04:58But let's go back because Intuit, you know, again to the outlook, seeing third quarter adjusted EPS, it's a little
05:04bit light in terms of what the street's expecting.
05:07They are looking for third quarter revenue up about 10%.
05:10You can see stock bouncing around.
05:12Now it's down again, down.
05:13Now it's unchanged.
05:14So I think investors just trying to figure out good, bad, or indifferent.
05:17I'm looking at Duolingo.
05:20The headline here in shares are down.
05:21But the company authorizes $400 million share buyback program.
05:25Shares down right now by 14.7%.
05:28The company, for its outlook, another reason why, or one reason why the stock is down.
05:33First quarter bookings, $301.5 million.
05:36The estimate was for $332.1 million.
05:38So a miss there.
05:40The company sees first quarter revenue coming in at $288.5 million.
05:44That's shy of the $291.8 million that investors wanted to see.
05:49This stock has been under pressure.
05:51CFO change just a few months ago.
05:54Shares down by about 18% as we speak.
05:58Once again, 2026 bookings, $1.27 billion to $1.3 billion.
06:03The estimate was for $1.4 billion.
06:06We've got the CEO coming on the program tomorrow.
06:09We're going to ask him about all this and more.
06:12What language is he going to be in?
06:13He speaks a lot of languages, but we're going to do it in English because that's our limitation here.
06:18It's going to be accounting language, financial language.
06:22Going from languages to online marketplaces, I don't really know an easy way to pivot there.
06:26But real, real right now, up 5.7%.
06:28This came after forecasts for revenue beat expectations, sees 1Q revenue, $185 to $189 million.
06:35The low end of that easily passing estimates for $182.2 million.
06:40Looking at first quarter EBITDA, adjusted EBITDA forecast, $11 to $13 million.
06:45Estimates were for $8.7 million.
06:47So a beat as it relates to RealReal looking forward.
06:50But again, another company that's been under pressure down also more than 20% so far this year.
06:55Computer and server maker Dell now crossing the wire with its quarterly report.
07:00The share is popping initially on the back of it.
07:02The main headline, the redhead on the terminal, is your fiscal 2027 forecast.
07:07Revenue in a range of $138 to $142 billion.
07:10The low end of that range is more than $10 billion above the average of street estimates.
07:16The street was looking for $126 and change.
07:18So a very bullish guidance here on the revenue side.
07:21When we go back just a little bit and take a look at the adjusted EPS in the quarter that
07:26just passed, the company also beat their $3.89 a share.
07:30The street on average is looking for $3.52.
07:33It looks like revenue also beat in the most recent quarter.
07:36The company also, guys, says it's going to raise its annual dividend by 20%, boost its buyback program by $10
07:44billion.
07:45A lot to unpack here in this release.
07:47Yeah, some more in terms of the commentary and context from the company.
07:51Recorded AI orders of $34.1 billion in the fourth quarter, $64.1 billion for the full year fiscal 2026
07:59in particular,
08:01surpassing 4,000 AI customers in fiscal year 26 with growth across Neocloud, Sovereign, and Enterprise customers.
08:08And again, as you said, raising that annual dividend and that board approving that $10 billion increase in the share
08:14buyback.
08:14And the fiscal year 2027, the company sees adjusted EPS of $12.90 a share at the midpoint.
08:22That's up 25%, Tim, year over year.
08:24Just looking through the commentary in the release to get some more context.
08:29The company's vice chair and COO, Jeff Clark, says the AI opportunity is transforming our company.
08:36We closed more than $64 billion in AI-optimized server orders, shipped more than $25 billion throughout the year,
08:43and are entering fiscal year 27 with record backlog of $43 billion, powerful proof that our engineering leadership and differentiated
08:50AI solutions are winning.
08:52Shares up by about 6% right now.
08:54Yeah, and you talk about that revenue growth figure.
08:56Remember, just a few years ago, this was a company that was in contraction and certainly got a big boost
09:00from AI.
09:01I do want to turn real quickly to Block, ticker XYZ.
09:04A lot of drama surrounding that company.
09:06The company says it's going to cut 40% of its workforce and says that for the first quarter that
09:11we're in right now,
09:12it sees adjusted operating income in a range of $600 million, which is actually above what the street was looking
09:19for.
09:19The company did actually report earnings for the quarter that just passed the fourth quarter,
09:23saying that gross profit did come in above estimates at $1.83 billion,
09:28and its segment revenue relatively in line with estimates at about $2.19 billion.
09:33But the key headline there is a 40% cut of its workforce.
09:36Hold on, Romain, when have you ever seen an announcement, 40% cut to headcount?
09:45This is, I'm a little surprised by this.
09:47I'm actually looking through the release right now.
09:48I don't know if this has something to do with some of the drama that we've been reporting on
09:52about the future of this company, whether this is about productivity and AI.
09:57Jack Dorsey, of course, has not been very vocal about exactly what's been going on there.
10:01But we talk about a company that we know has been trying to go through some sort of restructuring.
10:05We have to find out the exact reasons why.
10:07But, I mean, you look at the investor reaction there, Tim.
10:09I don't know if you have a TV screen in front of you, but a 15% pop in the
10:12shares on that?
10:13Well, when you're paying, you know, when your workforce declines by more than 40%,
10:18your salaries are going to be going down.
10:19So I think that that's probably one of the reasons why we're seeing that reaction right now.
10:25But, yeah, we're going to have to dig into this more because that is a big headcount cut announcement.
10:31Big headcount count.
10:32Is that AI at work?
10:33I don't know.
10:34That's what the Bloomberg story says.
10:36Jack Dorsey's block slashes nearly half the workforce in an AI bet.
10:39But also want to talk sticking on AI, the information reporting a few minutes ago that
10:43Meta has scrapped their most advanced AI training chip.
10:48Stocks not really reacting, but says that according to the information, Meta now is shifting their focus to less complicated
10:54versions.
10:55So they're kind of leaning into competing with NVIDIA, maybe a little bit more complex than expected.
10:59All right.
11:00And the AI parade continues.
11:01Core Weave out with its latest results.
11:04The stock is lower in the aftermarket.
11:06Core Weave, fourth quarter revenue, $1.57 billion.
11:09That's a little bit better than the street estimate of $1.55 billion.
11:12But we're going to dig a little bit deeper into that one, 5.5% lower in the aftermarket.
11:16And then there's going to be one that way to study the frog in the Northstoppest all within American air.
11:16So are you going to go first and finally see what type of rules!
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