WEBVTT - Netflix-Warner Deal May Pose Problem; Tesla Falls; IBM Deal

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News.

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<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

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<v Speaker 2>in the stock market. Harnessing the power of Bloomberg Data.

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<v Speaker 3>Let's take a look at some stocks on the move today.

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<v Speaker 3>I'm Nathan Hager, joined by Bloomberg's Valerie Titel, keeping an

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<v Speaker 3>eye on Warner Brothers, Discovery and Netflix this morning, because

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<v Speaker 3>along with Wall Street, here's President Trump is keeping an

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<v Speaker 3>eye on those stocks as well.

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<v Speaker 2>Good morning, Valerie, Hey, Good morning Nathan.

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<v Speaker 1>Yes, President Trump over the weekend saying that the amount

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<v Speaker 1>of market share the combined Netflix Warner Brothers Discovery entity

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<v Speaker 1>could have could be a problem when it comes to

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<v Speaker 1>regulatory approval. So we're seeing the shares of Netflix and

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<v Speaker 1>Warner Brothers reverse just a little bit of the move

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<v Speaker 1>that they had on Friday. Netflix is higher by one

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<v Speaker 1>point three percent, Warner Brothers is down just less than one.

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<v Speaker 1>Now this can all really come down to, Nathan, how

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<v Speaker 1>the regulators define the streaming market. A combined entity of

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<v Speaker 1>Warner Brothers, Discovery, which includes HBO, Max and Netflix, would

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<v Speaker 1>have around four hundred and fifty streaming users, which is

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<v Speaker 1>nearly half of the traditional streaming market. But if you

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<v Speaker 1>include the likes of YouTube other short form video content

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<v Speaker 1>since is TikTok, you get a really different picture of

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<v Speaker 1>the market in which Netflix could argue that it doesn't

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<v Speaker 1>give it a dominant stance. But all that being said

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<v Speaker 1>that this is going to face a lengthy Justice Department review.

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<v Speaker 1>Even the European Union might get involved. So again, this

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<v Speaker 1>deal is a bit on shaky footing this morning. If

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<v Speaker 1>you look at how the odds on polymarket have changed,

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<v Speaker 1>they were around sixty percent on Friday and they've now

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<v Speaker 1>dropped all the way down to twenty three percent of

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<v Speaker 1>a chance of this Netflix Warner Brothers deal closing by

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<v Speaker 1>the end of twenty twenty six.

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<v Speaker 2>Wow.

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<v Speaker 3>Yeah, big move there, And I imagine we're going to

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<v Speaker 3>see some pretty big moves in the Magnificent seven stocks

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<v Speaker 3>now that we've got this pretty interesting call from Ed

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<v Speaker 3>yard Anny of yard Denny Research.

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<v Speaker 1>Well, the big underperformer this morning is Tesla on one

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<v Speaker 1>point six percent, and as you mentioned, it does come

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<v Speaker 1>after a Wall Street veteran Yar Denny saying that he's

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<v Speaker 1>going underweight Max seven stocks versus the rest of the

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<v Speaker 1>S and P five hundred. So we're seeing some of

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<v Speaker 1>the mag seven stocks trade a bit softly to start

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<v Speaker 1>this Monday. When it comes to Tesla, they were also

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<v Speaker 1>downgraded by Morgan Stanley to equal weight from overweight. The

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<v Speaker 1>analysts there saying that a lot of the positive non

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<v Speaker 1>auto catalysts have already been priced into the stock and

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<v Speaker 1>they don't see a lot of upside here. So Tesla

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<v Speaker 1>leading the losses for the Max seven this morning, down

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<v Speaker 1>one and a half percent.

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<v Speaker 3>One of the biggest upside movers this morning is Confluent

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<v Speaker 3>on some potential merger Monday news.

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<v Speaker 1>Merger Monday news as reported by The Wall Street Journal

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<v Speaker 1>that IBM is in talks to acquire Confluent in a

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<v Speaker 1>deal that could be valued around eleven billion dollars. So

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<v Speaker 1>we're seeing shares of Confluent up twenty eight percent. Shares

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<v Speaker 1>of IBM are just flat to the downside this morning,

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<v Speaker 1>but it could be essentially the biggest acquisition that IBM

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<v Speaker 1>has done in modern history if this does get announced.

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<v Speaker 1>It's all about its repositioning its business around AI. Confluence

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<v Speaker 1>platform is used to manage data streams, which has become

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<v Speaker 1>an increasingly important issue for companies looking to integrate their

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<v Speaker 1>data into AI models. Whilstree Journal has been reporting that

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<v Speaker 1>this deal could be announced as students today.

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<v Speaker 3>And speaking of repositioning Valerie, We've got a new stock

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<v Speaker 3>to watch in the SMP five hundred this morning.

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<v Speaker 1>Yeah, SMP quarterly rebalancing of the index will include Carvana

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<v Speaker 1>come the December twenty second rebound. So we're seeing shares

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<v Speaker 1>of Carvana up nine percent on the back of this news.

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<v Speaker 1>So it seems a bit unexpected at least by the

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<v Speaker 1>market and does follow a strong performance by the used

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<v Speaker 1>auto dealing company. So Carvana on the upside of nine percent,

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<v Speaker 1>it's already gained around one hundred percent this year, so

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<v Speaker 1>adding to a strong performance in twenty twenty five.

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<v Speaker 2>This stock mover's report from Bloomberg. Check back with us

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