October 29, 2025 • 6 mins
On this episode of Stock Movers, we take a look at some of the days's biggest gainers and decliners:
- Meta (META) shares dropped in the aftermarket as the company said it expects total expenses to significantly increase in 2026, and will continue to invest at historic levels in artificial intelligence. The company also reported third-quarter net income of $2.71 billion, which included a one-time, non-cash income tax charge of $15.9 billion due to the implementation of the tax bill signed into law in July, Meta said in the statement.
- Microsoft (MSFT) shares slipped in extended trading after the company reported a steeper climb in spending than Wall Street expected, fueling anxieties about the high costs of providing AI infrastructure.
- Alphabet (GOOGL) shares rose after the large cap reported quarterly sales that beat analysts’ estimates, buoyed by the performance of its cloud unit, which is surging as artificial intelligence startups seek Google’s support and computing power.
- Shares rose as much as 7.5% in extended trading.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio News, The.
Speaker 2 (00:08):
Stock Movers Report, your roundup of companies making moves in
the stock market, harnessing the power of Bloomberg Data.
Speaker 3 (00:16):
Let's take a look at some stocks on the move today.
We're joined by Bloomberg News Process that reporter Emily Graffeo.
Emily a lot moving in the out hours.
Speaker 1 (00:24):
We have a lot of the big tech stocks reporting earnings.
So let's start with Microsoft Tiger MSFT. This stock was
down as much as four percent in after hours. Now
it's only down about one, well two point five percent
in just the first hour of the post market. The earnings,
EPs and sales were above estimates, and then the cloud
(00:46):
service revenue did beat average the average ANELES estimates, so
revenue for the first quarter seventy seven point six billion
versus estimates of about seventy five. The EPs also came
in above. I mean, overall here the stock is down,
but when you consider the headlines that we're getting out
of some other tech companies for this earnings, I would say,
(01:07):
so far, so good for Microsoft first quarter.
Speaker 4 (01:09):
As you said cloud first quarter, as you're another cloud
revenue x currency up thirty nine percent. The estimate was
thirty seven point one percent. Our own ana agronosig that's
a good number he did.
Speaker 3 (01:21):
Yeah, he's out with a note and he's going to
be listening on this call, but out with a note
right now. It says Microsoft's fiscal first quarter capital spending
including lisas came in at thirty five thirty four point
nine billion, much higher than CONSEETSUS thirty point one billion dollars.
And though this metric may raise concern for some, we
see it as a signal of rising AI workload demand.
(01:41):
That number is good news to honorog in the team.
Speaker 4 (01:43):
And I guess as long as the demand is there, right, like,
the spend makes sense. Where do you want to go next?
Speaker 5 (01:48):
Okay? Google?
Speaker 1 (01:49):
Okay, so ticker Gooogl. We're talking about Alphabet here, the
parent company of Google.
Speaker 5 (01:55):
Rising.
Speaker 1 (01:56):
It was up five percent, it is now up. I
know it's moving around a little, it's moving around a lot. Still,
it's still twenty five percent.
Speaker 5 (02:07):
Yeah.
Speaker 1 (02:07):
In the post market reported quarterly sales and beat analysts estimates.
We were talking about Microsoft's cloud unit, but the cloud
unit over at Alphabet also doing well, which is growing
as AI startups seek Google support and computing power. So
the revenue for the third quarter beat estimates, coming in
at one hundred and two point three five billion. The
(02:27):
third quarter EPs also beat estimates two dollars eighty seven
cents a share, and they boosted their full year capex projection.
So they see fullyar spending on capital expenditures ninety one
billion dollars to ninety three billion dollars they had seen
eighty five billion.
Speaker 5 (02:45):
This is all on that continued.
Speaker 1 (02:47):
Spending on AI data centers that they need to do
and custom chips. This is the big story I would
say of tech stocks in twenty twenty five, of like,
how much are you spending on AI? When is it
going to pay off? What exactly are you buying? What
are the projects?
Speaker 5 (03:03):
So listening for more of those markets.
Speaker 3 (03:05):
Well, sometimes investors are cool with spending money on this stuff.
Sometimes they don't react necessarily the way you want them
to if you're long a stock.
Speaker 5 (03:14):
Yeah, so sometimes they don't.
Speaker 1 (03:16):
I think we're all thinking of Meta here Tickerneta. That
stock is down over seven percent after reporting earnings, and
this is coming after Meta said it expects total expenses
to significantly increase in twenty twenty six as the company
has to spend on data centers and other equipment to
fuel the efforts in AI.
Speaker 5 (03:38):
You have to wonder if there were some specifics.
Speaker 1 (03:40):
About the spending plan that maybe investors are picking up
on that it was different, that they didn't like that
versus Google Googles. But yeah, I mean it's a bit
confusing here to see the stock down on this news
and then Alphabet obviously doing well on their promises to
spend more on AI.
Speaker 4 (03:58):
Yeah, it's kind of fascinating, right, like the stories being
told by each I mean, keep in mind, Meta is
up almost thirty percent here in twenty twenty five, Alphabet
is up about forty five percent year right in twenty
twenty five, and like, what's Microsoft? Microsoft in is up
almost thirty percent this year. I mean, all these guys
(04:20):
have been on fire.
Speaker 1 (04:21):
And we know that, and we also we are getting
more headlines out of Meta that the company reported third
quarter net income of two point seventy one billion, which
included a non cash income tax charge of fifteen point
nine billion due to the implementation of the tax bill
that was signed into law in July. So again, this
is something that I don't think investors were expecting out
(04:42):
of the earnings, so could be weighing on the stock
as well that they're reading headlines about a tax charge
and these headlines about expenses increasing. So at least for
the postmarket, that stock is down after those earnings.
Speaker 5 (04:56):
I will say too.
Speaker 4 (04:57):
We're getting some calls on the live blog, Meta assuring
analysts on the call that it still expects significant cash
tax savings for the remainder of the year despite the
hefty tax charge they are talking about. Zuckerberg signaling that
Meta may have some news coming on its AI models
and products, saying that his team has been heads down
(05:20):
working on the next generation and that he's looking forward
to sharing more on that over the coming months. For
those who are on radio right now, Tim is playing
around with his glasses.
Speaker 3 (05:28):
Because that's what Mark Zuckerberg thinks the future is. He
may have renamed the company Meta Platforms, but he's really
leaning into augmented reality and virtual reality and meta ray bands. Yeah,
called it out and then release, Yeah, you're not wearing them.
Speaker 1 (05:42):
I'm not, but you know it is fun if a
friend is wearing them and then they take a photo
of you and it's like.
Speaker 3 (05:46):
Oh, Sebastian, one of our producers does that at some
of some our events. It's pretty cool.
Speaker 4 (05:51):
Yeah, he likes those meta ray bands. Mark Zuckerberg saying
on the call that he's investing in computing capacity based
on his most optimistic forecast for achieving super intelligence.
Speaker 1 (06:00):
Yeah, and this is like hundreds of billions a superinturigence
come of a cave.
Speaker 2 (06:04):
The Stockmover's 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.
Bloomberg Audio Studios, podcasts, radio News, The.
Speaker 2 (00:08):
Stock Movers Report, your roundup of companies making moves in
the stock market, harnessing the power of Bloomberg Data.
Speaker 3 (00:16):
Let's take a look at some stocks on the move today.
We're joined by Bloomberg News Process that reporter Emily Graffeo.
Emily a lot moving in the out hours.
Speaker 1 (00:24):
We have a lot of the big tech stocks reporting earnings.
So let's start with Microsoft Tiger MSFT. This stock was
down as much as four percent in after hours. Now
it's only down about one, well two point five percent
in just the first hour of the post market. The earnings,
EPs and sales were above estimates, and then the cloud
(00:46):
service revenue did beat average the average ANELES estimates, so
revenue for the first quarter seventy seven point six billion
versus estimates of about seventy five. The EPs also came
in above. I mean, overall here the stock is down,
but when you consider the headlines that we're getting out
of some other tech companies for this earnings, I would say,
(01:07):
so far, so good for Microsoft first quarter.
Speaker 4 (01:09):
As you said cloud first quarter, as you're another cloud
revenue x currency up thirty nine percent. The estimate was
thirty seven point one percent. Our own ana agronosig that's
a good number he did.
Speaker 3 (01:21):
Yeah, he's out with a note and he's going to
be listening on this call, but out with a note
right now. It says Microsoft's fiscal first quarter capital spending
including lisas came in at thirty five thirty four point
nine billion, much higher than CONSEETSUS thirty point one billion dollars.
And though this metric may raise concern for some, we
see it as a signal of rising AI workload demand.
(01:41):
That number is good news to honorog in the team.
Speaker 4 (01:43):
And I guess as long as the demand is there, right, like,
the spend makes sense. Where do you want to go next?
Speaker 5 (01:48):
Okay? Google?
Speaker 1 (01:49):
Okay, so ticker Gooogl. We're talking about Alphabet here, the
parent company of Google.
Speaker 5 (01:55):
Rising.
Speaker 1 (01:56):
It was up five percent, it is now up. I
know it's moving around a little, it's moving around a lot. Still,
it's still twenty five percent.
Speaker 5 (02:07):
Yeah.
Speaker 1 (02:07):
In the post market reported quarterly sales and beat analysts estimates.
We were talking about Microsoft's cloud unit, but the cloud
unit over at Alphabet also doing well, which is growing
as AI startups seek Google support and computing power. So
the revenue for the third quarter beat estimates, coming in
at one hundred and two point three five billion. The
(02:27):
third quarter EPs also beat estimates two dollars eighty seven
cents a share, and they boosted their full year capex projection.
So they see fullyar spending on capital expenditures ninety one
billion dollars to ninety three billion dollars they had seen
eighty five billion.
Speaker 5 (02:45):
This is all on that continued.
Speaker 1 (02:47):
Spending on AI data centers that they need to do
and custom chips. This is the big story I would
say of tech stocks in twenty twenty five, of like,
how much are you spending on AI? When is it
going to pay off? What exactly are you buying? What
are the projects?
Speaker 5 (03:03):
So listening for more of those markets.
Speaker 3 (03:05):
Well, sometimes investors are cool with spending money on this stuff.
Sometimes they don't react necessarily the way you want them
to if you're long a stock.
Speaker 5 (03:14):
Yeah, so sometimes they don't.
Speaker 1 (03:16):
I think we're all thinking of Meta here Tickerneta. That
stock is down over seven percent after reporting earnings, and
this is coming after Meta said it expects total expenses
to significantly increase in twenty twenty six as the company
has to spend on data centers and other equipment to
fuel the efforts in AI.
Speaker 5 (03:38):
You have to wonder if there were some specifics.
Speaker 1 (03:40):
About the spending plan that maybe investors are picking up
on that it was different, that they didn't like that
versus Google Googles. But yeah, I mean it's a bit
confusing here to see the stock down on this news
and then Alphabet obviously doing well on their promises to
spend more on AI.
Speaker 4 (03:58):
Yeah, it's kind of fascinating, right, like the stories being
told by each I mean, keep in mind, Meta is
up almost thirty percent here in twenty twenty five, Alphabet
is up about forty five percent year right in twenty
twenty five, and like, what's Microsoft? Microsoft in is up
almost thirty percent this year. I mean, all these guys
(04:20):
have been on fire.
Speaker 1 (04:21):
And we know that, and we also we are getting
more headlines out of Meta that the company reported third
quarter net income of two point seventy one billion, which
included a non cash income tax charge of fifteen point
nine billion due to the implementation of the tax bill
that was signed into law in July. So again, this
is something that I don't think investors were expecting out
(04:42):
of the earnings, so could be weighing on the stock
as well that they're reading headlines about a tax charge
and these headlines about expenses increasing. So at least for
the postmarket, that stock is down after those earnings.
Speaker 5 (04:56):
I will say too.
Speaker 4 (04:57):
We're getting some calls on the live blog, Meta assuring
analysts on the call that it still expects significant cash
tax savings for the remainder of the year despite the
hefty tax charge they are talking about. Zuckerberg signaling that
Meta may have some news coming on its AI models
and products, saying that his team has been heads down
(05:20):
working on the next generation and that he's looking forward
to sharing more on that over the coming months. For
those who are on radio right now, Tim is playing
around with his glasses.
Speaker 3 (05:28):
Because that's what Mark Zuckerberg thinks the future is. He
may have renamed the company Meta Platforms, but he's really
leaning into augmented reality and virtual reality and meta ray bands. Yeah,
called it out and then release, Yeah, you're not wearing them.
Speaker 1 (05:42):
I'm not, but you know it is fun if a
friend is wearing them and then they take a photo
of you and it's like.
Speaker 3 (05:46):
Oh, Sebastian, one of our producers does that at some
of some our events. It's pretty cool.
Speaker 4 (05:51):
Yeah, he likes those meta ray bands. Mark Zuckerberg saying
on the call that he's investing in computing capacity based
on his most optimistic forecast for achieving super intelligence.
Speaker 1 (06:00):
Yeah, and this is like hundreds of billions a superinturigence
come of a cave.
Speaker 2 (06:04):
The Stockmover's 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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