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Let's take a look at some stocks on the move today. I'm Nathan Hager, joined by Bloomberg's Valerie Titel. Pretty busy morning for individual stocks. Valerie, Let's start off with Amazon. Is Amazon suddenly an Nvidia competitor?
Now?
Good morning, and good morning Nathan.
It's looking like it could post some threat to Nvideo's market share in AI chips. It's rising one point seven percent in the pre market, leading the Mac seven this morning after it was announced that they are in talks to invest ten billion or more in open Ai, and the deal would see open Ai use an Amazon's trainium chips. So this is a big win for Amazon's AI ambitions to compete with the likes of Nvidia in this very competitive, very lucrative.
AI chip race.
The deal would also value open Ai north of five hundred billion dollars, and we know we're tracking that as there is all of this talk floating around about open Ai potentially ipoing in the next few years. So they've notched up their valuation even further and signed this deal with Amazon, likely using their chips off the back of that.
All right, so Amazon's getting a lift this morning.
But we got to talk about the biggest decliner among large cap stocks this morning.
That would be homebuilder Lenar after all.
Yeah, homebuilder Lennar is down four percent in dragging down the whole home building sector with it. We've got Poulti Group down one point four, Toll Brothers down one and a half. And it came after Lonar gave a forecast for the first quarter deliveries and margins that were all below expectations. It also signaled, you know, just some strains in the housing market, and this is despite lower interest rates of late. The builder also posted a lower than
expected order number and margins for the current quarter. So Lenar falling four percent and dragging down the sector with it.
I mean, while the Warner Brothers Discovery bidding war continues and the latest development seem to be benefiting Netflix for sure.
Yeah, we're seeing shares of Netflix up one point seven percent, a double whammy of negative news for paramount sky Dance. The Warner Brothers board is said to be preparing their shareholders to reject the Paramount offer and also comes after news that Jared Kushner's Affinity Fund is pulling its equity that it pledged to the Paramount for the takeover. So this negative news is seeing Paramount skuy Dance down nearly one percent and Warner Brothers is also in the red
down one percent. So if it's losing one of the second bidders for its assets, perhaps Warner Brothers won't see Netflix raising their offer in order to win this hostile takeover. So it does seem like Netflix might come out as the leader amid this takeover battle for Warner Brothers Discovery's assets.
And apparently this isn't the only deal that we need to keep an eye on. As of Spirit, Frontier Airlines high up back.
Again, Yeah, back again for what a second or third time of lost?
I've tried to track myself right.
Frontier Airlines is up nearly nine percent off the back of this news that Spirit Airlines is in revived discussions to merge with Frontier that would save Spirit Airlines from insolvency. Spirit Airlines announced their second bankruptcy in less than a year back in August. Now, if these two airlines do combine it would be the fifth largest airline in the US based on miles flown. Frontier is also rebounding though
from something that happened yesterday. They had an announcement that they were replacing their CEO, and the stocks lilid eleven percent. So some of this you can read as perhaps a rebound from that negative news, but there is also looks like it a good deal that could be announced in between Frontier and Spirit Airlines.
And finally, Valerie got to keep it eye on the defense stocks because it looks like President Trump's got his eye on them as well.
Yeah, this is an interesting one. We're seeing Lockey down one and a half percent in North Throughout, Gunman down one percent after some news that the Trump administration is said to be weighing an executive order to pressure defense contractors to spend less on buybacks and dividends and invest more in products.
It's the latest effort by the White.
House to fix the issue around slope your curement process for the Department of War. And there are big questions though whether Trump does have an ability to enforce such an order. It's an extraordinary intrusion by the US government into corporate adfairs.
This Stock Movers 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.