Episode summary
GM Slides as CEO Barra Warns of ‘Intensifying’ Challenges | Bloomberg Intelligence
Bloomberg Intelligence
· · 22 min · Hosts: Paul Sweeney, Scarlet Fu · Guests: Craig Trudell, Anurag Rana, Bailey Lipschultz, Lindsay Dutch
Summary
General Motors narrowed its 2026 profit outlook and paired the softer guidance with a new $20 billion buyback, but the stock fell as investors focused on Mary Barra’s warning that external headwinds are “intensifying.” The host and Craig Trudell argued that the carmaker’s challenge is a weak U.S. consumer environment: new-vehicle prices above $50,000, higher rates, and heavy exposure to pickups and SUVs make GM more vulnerable, while the loss of EV tax credits has made its electric push harder to sustain. Trudell said GM still sees fully electric vehicles as the “north star,” but the company has limited hybrids and is losing share to Toyota and Hyundai.
The conversation then shifted to software M&A, where Salesforce agreed to buy Braze for almost $5.7 billion in enterprise value, or $47.50 per share. Anurag Rana said the deal looks opportunistic because smaller software names have been crushed and Braze is being bought at a much cheaper multiple than in prior years. He argued the transaction suggests Salesforce is back in acquisition mode, after earlier deals like Informatica and Figma, and that peers could follow if valuations stay depressed.
Bailey Lipschultz also discussed Nscale’s talks with Anthropic for a $45 billion AI computing deal, framing it as part of a broader scramble for compute capacity. Later, Lindsey Dutch said Hasbro’s strong results were driven by Magic: The Gathering, while Mattel remains pressured by a weaker portfolio mix in dolls and preschool brands.
Key takeaways
- Craig Trudell said GM’s narrower guidance and Barra’s more cautious tone drove the stock down even though the company approved another $20 billion buyback.
- Trudell argued that higher prices, higher rates, and the end of EV tax credits are hurting GM because of its U.S. exposure and pickup/SUV mix.
- Anurag Rana said Salesforce is buying Braze cheaply, at about 5.7 times forward price-to-sales, which could signal a return to serial acquisitions.
- Rana said Oracle, Adobe, and possibly other rivals are less likely to chase similar deals because of capital needs, management changes, or weaker stocks.
- Lindsey Dutch said Hasbro’s growth is being driven mainly by Magic: The Gathering and adult collectors, not by the broader toy market.
Notable quotes
“external headwinds uh that are in intensifying. Uh she also talked about the path forward being challenging”
“fully electric vehicles is still the way of the future and that's and I think she's used the phrase that's their north star”
“Magic of the Gathering, which is their strategic trading card game, you know, just continues to sort of blow it out of the water”
How the episode opens
Bloomberg Audio Studios, podcasts, radio, news. You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10 a.m.
Eastern on Apple CarPlay and Android Auto with the Bloomberg Business App. Listen on demand wherever you get your podcast or watch us live on YouTube. Well, General Motors narrowed its fullear profit forecast and said it will buy back another $20 billion in stock.
This reflects strong cash flows even as the car maker sales are softening. Earlier, General Motor CFO Paul Jacobson gave his thoughts about quarterly earnings on Bloomberg television. Take a listen.
When we look at the fourth quarter, uh, you know, I think, uh, Cellside, uh, you know, I think missed a couple of things that we've talked about. When you look at the year in review, we've taken guidance up twice. uh on the underlying business and IPA tariff refunds. Um so all in all, I think uh the business continues to perform very very well and we're looking forward to an exciting 2027.
All right, that was General Motors uh CFO Paul Jacobson speaking to Bloomberg teleen. Let's bring in Craig Trudeell uh global autos editor for Bloomberg News. He's live here in our Bloomberg interactive broker studio.
Craig, talk to us about GM. Uh what did they kind of get across on the earnings call? What maybe you're maybe some investors concerned about here?
I see the stock trading down about 5 6% today. Yeah, the the stock isn't liking it and that may have uh something to do with uh the fact that the sort of top end of their forecast range was taken down a little bit. They did uh bring up the bottom end so it was a case of narrowing.
Uh but I I think the commentary from uh Mary Bar, the CEO, also may not have have helped where it it did seem like she went into this call with an intent to kind of, you know, signal that there are in in her words uh external headwinds uh that are in intensifying.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- gm earnings
- stock buybacks
- salesforce-braze deal
- ai chip data center power
- hasbro earnings outlook
Companies and tickers mentioned
- GM
- CRM
- NVDA
- HAS
- General Motors
- Salesforce
- Braze Inc.
- Nscale
- Anthropic PBC
- Nvidia
- Hasbro
Watch the episode
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
More from Bloomberg Intelligence
-
Instant Reaction: Nvidia CEO Jensen Huang Ousted by Nvidia Board | Bloomberg Intelligence -
Nvidia’s Huang Ousted by Board in Move That Roils AI Economy | Bloomberg Intelligence -
CoreWeave Shares Soar After AI Computing Firm Eases Debt Fears | Bloomberg Intelligence -
Anthropic Targets $1.4 Trillion Valuation in Blockbuster IPO | Bloomberg Intelligence -
Nvidia Probe Into CEO Affair Raises Thorny Questions for AI | Bloomberg Intelligence -
Election 'Blue Wave' & Your Wallet; Navigating AI-Driven Market Volatility | Bloomberg Intelligence
Bloomberg Intelligence, this episode and its artwork belong to Bloomberg. Octagon is not affiliated with the show; this page is an independent summary.
