Speaker 1: Bloomberg Audio Studios, podcasts, radio News.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market. Harnessing the power of Bloomberg Data.
Speaker 3: Let's take a look at some stocks on the move today.
Speaker 3: I'm Nathan Hager, joined by Bloomberg's Valerie Titel, keeping an
Speaker 3: eye on Warner Brothers, Discovery and Netflix this morning, because
Speaker 3: along with Wall Street, here's President Trump is keeping an
Speaker 3: eye on those stocks as well.
Speaker 2: Good morning, Valerie, Hey, Good morning Nathan.
Speaker 1: Yes, President Trump over the weekend saying that the amount
Speaker 1: of market share the combined Netflix Warner Brothers Discovery entity
Speaker 1: could have could be a problem when it comes to
Speaker 1: regulatory approval. So we're seeing the shares of Netflix and
Speaker 1: Warner Brothers reverse just a little bit of the move
Speaker 1: that they had on Friday. Netflix is higher by one
Speaker 1: point three percent, Warner Brothers is down just less than one.
Speaker 1: Now this can all really come down to, Nathan, how
Speaker 1: the regulators define the streaming market. A combined entity of
Speaker 1: Warner Brothers, Discovery, which includes HBO, Max and Netflix, would
Speaker 1: have around four hundred and fifty streaming users, which is
Speaker 1: nearly half of the traditional streaming market. But if you
Speaker 1: include the likes of YouTube other short form video content
Speaker 1: since is TikTok, you get a really different picture of
Speaker 1: the market in which Netflix could argue that it doesn't
Speaker 1: give it a dominant stance. But all that being said
Speaker 1: that this is going to face a lengthy Justice Department review.
Speaker 1: Even the European Union might get involved. So again, this
Speaker 1: deal is a bit on shaky footing this morning. If
Speaker 1: you look at how the odds on polymarket have changed,
Speaker 1: they were around sixty percent on Friday and they've now
Speaker 1: dropped all the way down to twenty three percent of
Speaker 1: a chance of this Netflix Warner Brothers deal closing by
Speaker 1: the end of twenty twenty six.
Speaker 2: Wow.
Speaker 3: Yeah, big move there, And I imagine we're going to
Speaker 3: see some pretty big moves in the Magnificent seven stocks
Speaker 3: now that we've got this pretty interesting call from Ed
Speaker 3: yard Anny of yard Denny Research.
Speaker 1: Well, the big underperformer this morning is Tesla on one
Speaker 1: point six percent, and as you mentioned, it does come
Speaker 1: after a Wall Street veteran Yar Denny saying that he's
Speaker 1: going underweight Max seven stocks versus the rest of the
Speaker 1: S and P five hundred. So we're seeing some of
Speaker 1: the mag seven stocks trade a bit softly to start
Speaker 1: this Monday. When it comes to Tesla, they were also
Speaker 1: downgraded by Morgan Stanley to equal weight from overweight. The
Speaker 1: analysts there saying that a lot of the positive non
Speaker 1: auto catalysts have already been priced into the stock and
Speaker 1: they don't see a lot of upside here. So Tesla
Speaker 1: leading the losses for the Max seven this morning, down
Speaker 1: one and a half percent.
Speaker 3: One of the biggest upside movers this morning is Confluent
Speaker 3: on some potential merger Monday news.
Speaker 1: Merger Monday news as reported by The Wall Street Journal
Speaker 1: that IBM is in talks to acquire Confluent in a
Speaker 1: deal that could be valued around eleven billion dollars. So
Speaker 1: we're seeing shares of Confluent up twenty eight percent. Shares
Speaker 1: of IBM are just flat to the downside this morning,
Speaker 1: but it could be essentially the biggest acquisition that IBM
Speaker 1: has done in modern history if this does get announced.
Speaker 1: It's all about its repositioning its business around AI. Confluence
Speaker 1: platform is used to manage data streams, which has become
Speaker 1: an increasingly important issue for companies looking to integrate their
Speaker 1: data into AI models. Whilstree Journal has been reporting that
Speaker 1: this deal could be announced as students today.
Speaker 3: And speaking of repositioning Valerie, We've got a new stock
Speaker 3: to watch in the SMP five hundred this morning.
Speaker 1: Yeah, SMP quarterly rebalancing of the index will include Carvana
Speaker 1: come the December twenty second rebound. So we're seeing shares
Speaker 1: of Carvana up nine percent on the back of this news.
Speaker 1: So it seems a bit unexpected at least by the
Speaker 1: market and does follow a strong performance by the used
Speaker 1: auto dealing company. So Carvana on the upside of nine percent,
Speaker 1: it's already gained around one hundred percent this year, so
Speaker 1: adding to a strong performance in twenty twenty five.
Speaker 2: This stock mover's report from Bloomberg. Check back with us
Speaker 2: throughout the day for the latest roundup of companies making
Speaker 2: news on Wall Street and for the latest market moving headlines.
Speaker 2: Listen to Bloomberg Radio Live, catch us on YouTube, Bloomberg
Speaker 2: dot com, and on Applecarplay and Android Auto with the
Speaker 2: Bloomberg Business app.