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🗞️ Netflix's $72 Billion Blockbuster
Big Moves Decoded: Meta, Moderna, and more!
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Market Performance
S&P 500: 6,870.40 ⬆️ 0.19%
Nasdaq: 23,578.13 ⬆️ 0.31%
Dow Jones: 47,954.99 ⬆️ 0.22%
Netflix Acquires Warner Bros. Discovery
Netflix (NFLX) announced a deal to buy Warner Bros. Discovery's film studio and streaming service HBO Max for $72 billion in equity value ($82.7 billion enterprise value).
The transaction, valued at $27.75 per WBD share in cash and stock, beat competing bids from Paramount Skydance and Comcast.
This is Netflix's biggest acquisition ever and represents a stunning shift for the streaming giant known for building, not buying.
The deal brings together Netflix's 300 million global subscribers with HBO Max's 128 million customers, plus Warner Bros.' legendary film library, including Harry Potter, DC Comics, and classics like "The Wizard of Oz."
"This is a rare opportunity to help us achieve our mission to entertain the world," Netflix co-CEO Ted Sarandos said, acknowledging surprise at the move.
The deal faces significant regulatory hurdles. The Trump administration views it with "heavy skepticism," and Senator Elizabeth Warren has called for an antitrust review, warning it would create "one massive media giant with control of close to half of the streaming market."
Netflix agreed to a $5.8 billion reverse breakup fee if regulators block it.
Netflix stock has a Ziggma score of 97 and ranks above most peers in terms of profitability and financial health.
The streaming giant has surged more than 600% in the past decade and trades at a reasonable valuation in December 2025.
Our Takeaway
This transformative deal cements Netflix's streaming dominance, but regulatory approval is far from guaranteed.
The 12-18 month timeline reflects real antitrust concerns.
For investors, this signals Netflix's confidence in maintaining pricing power through ownership of premium content rather than just licensing.
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Market Overview 📈
The S&P 500 secured its fourth consecutive winning day and ninth positive session in ten, closing just 0.7% off its intraday record.
Markets digested the delayed September inflation data, which reinforced expectations for a Federal Reserve rate cut next Wednesday.
The core PCE price index—the Fed's preferred inflation gauge—showed an annual rate of 2.8%, lower than the 2.9% estimate.
The monthly 0.2% rise matched expectations, providing further justification for monetary easing.
With inflation remaining mild and recent jobs data showing weakness, traders are now pricing in an 87% probability of a quarter-point rate cut on Wednesday, significantly higher than just weeks ago.
The 30-year Treasury yield traded at levels not seen since 2023 after the House passed a tax bill that could increase the deficit by nearly $4 trillion, according to the Congressional Budget Office.
Rising long-term rates could pressure an economy already feeling the weight of universal tariffs.
"It really just solidifies what the market's already been pricing in, which is almost certainty of a cut for next week," said David Krakauer of Mercer Advisors.
Still, he doesn't see the rate cut as a major catalyst for further gains, though he remains optimistic about the market's path forward.
Stock Moves Deciphered 📈
💄 Ulta Beauty (ULTA)
Ulta Beauty shares soared nearly 13% after crushing third-quarter expectations and raising full-year guidance.
The beauty retailer now expects 2025 revenue of $12.3 billion, up from its previous $12-$12.1 billion forecast and above the $12.13 billion consensus.
Same-store sales growth guidance jumped to 4.4%-4.7% from 2.5%-3.5% previously.
🛍️ Dollar Tree (DLTR)
Dollar Tree climbed 5.70% to reach a new 52-week high after delivering better-than-expected third-quarter earnings and raising full-year guidance.
The discount retailer saw significant increases in same-store sales, demonstrating that consumers continue seeking value amid economic uncertainty.
The stock's rally to levels not seen since April 2024 reflects strong execution and positioning in the dollar store segment, where demand remains resilient despite broader economic headwinds.
💉Moderna (MRNA)
Moderna jumped 8.70% after France released a comprehensive long-term safety study covering 28 million people that confirmed the safety and effectiveness of its COVID-19 vaccine.
The study provided strong real-world evidence for the long-term safety profile of mRNA vaccine technology, addressing lingering concerns and boosting investor confidence in both the company's flagship product and its broader mRNA platform technology for future therapeutic applications.
💸 Adobe (ADBE)
Adobe shares gained 5.33% driven by positive momentum ahead of its upcoming fourth-quarter earnings report and a significant share buyback program.
The software giant also received an "Overweight" rating from Barclays, with analysts forecasting growth in both revenue and earnings per share.
The stock benefited from broader strength in the technology sector, particularly among companies exposed to AI innovation and enterprise software demand.
Headlines You Can't Miss 👀
📉 Bank of America downgrades BP to underperform, slashing price target to $30, warning that sentiment has triumphed over fundamental execution risks.
🎮 Unity Software surges 3.7% after Wells Fargo upgrade to overweight, citing strong 2026 user acquisition growth and mobile payment migration benefits.
💊 Jefferies upgrades Humana to buy with $313 target, expecting Medicare Advantage star rating diversification to boost earnings significantly.
🏦 32 S&P 500 stocks hit new 52-week highs, including Electronic Arts (all-time high), Goldman Sachs, Caterpillar, Walmart, and Bank of America.
📈 Individual investor bearishness drops to lowest since January with only 30.8% pessimistic, according to AAII weekly survey, first time below historical average in nearly a year.
💻 Tech ETF (XLK) gains for 10th consecutive day, posting longest rally since September 2020, outperforming the broad market with 2% weekly gain.
📊 University of Michigan consumer sentiment came in higher than expected for December, providing mixed signals ahead of the Fed decision and mild PCE inflation data.
Trending Stocks 📊
✂ Meta Platforms (META)
Meta shares climbed 5% after Bloomberg reported the company plans budget cuts of up to 30% for its metaverse unit, likely including layoffs in its virtual reality group.
Analysts celebrated the news as evidence of continued financial discipline and renewed focus on efficiency and growth in core business areas.
⛏️ Albemarle (ALB)
The lithium producer gained traction after UBS upgraded the stock to buy with a $185 price target, implying 55% upside.
UBS expects lithium markets to move into deficit in 2026 due to higher energy storage demand and slower western capacity additions, driving prices higher through the year.
✈️ Southwest Airlines (LUV)
Southwest Airlines' stock surged 5.7% to a 52-week high on December 5, despite cutting its 2025 EBIT forecast to $500 million from $600-800 million.
The positive market reaction was driven by evidence that bookings have returned to normal levels following the government shutdown.
Investors viewed the demand recovery as a positive forward-looking signal for the airline industry.
What’s Next?
Key market and macro news 👇
🏠 Toll Brothers reports Q4 results on Monday after close, providing insight into residential construction demand.
🎤 Oracle, Adobe, and Broadcom earnings on December 10 create potential tech sector volatility.
🛒 Lululemon and Costco earnings signal consumer health and holiday season performance.
📊 Global inflation data releases: China CPI, U.S. PPI, and Germany CPI indicate international price pressure trends.
🏦 Central bank decisions globally will shape monetary policy direction and currency movements heading into year-end.
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