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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 in the morning where we've been focused on the big deal news for Warner Brothers Discovery. But here comes Southwest Airlines putting a damper on things.
Oh yeah, good morning, Nathan, Happy Friday to you. Yes, Southwest Airlines adding a bit of caution to the airline industry today. They cut their operating profit target this morning for the current quarter. The sharers are down just over two percent in pre market. They now expect earnings before interest in taxes to be at five hundred million for the current a year. Previously, they had a range of
around six hundred million to eight hundred million. They cited two factors in this release, the first one being the government shutdown impacts They saw a temporary decline in demand, the second one due to higher fuel prices. Southwest did state though that bookings have now returned two expected levels, so this pullback in demand is something that's not continuing
as something they just saw during the government shutdown. But nonetheless, Southwest on a back foot this morning, down over two percent.
Definitely not a pullback of demand when it comes to the players who want to buy Warner Brothers Discovery, this morning, looks like we may have a winner, Valerie.
Yeah.
Netflix is said to begin exclusive talks with Warner Brothers. We are seeing both shares of these companies in the red this morning. Warner Brothers was initially up around four percent on this news that is now down one percent in pre market trade, as is Netflix. Now the world's biggest paid streaming service, Netflix is looking to be getting
even bigger. Sources are telling us that they are looking at Warner Brothers Film TV Studios and their HBO Max streaming ser Netflix is also said to have offered a five billion dollar breakup fee. If regulators strike down the deal, and if talks go well, a deal could be announced in the coming days.
All right, let's talk about the one big earning story this morning. A big move to the downside for HP Enterprise.
HPE Enterprises, This one is on a big backfoot this morning, down nearly ten percent. Nathan, their sales outlook fell short of estimates, as did their sales for the previous quarter. They cited some delays in client contracts, so this is interesting. Some deals for servers to power AI workloads were essentially pushed into twenty twenty six. The CEO mentioned two examples, one of which was a delay in a European data center build out. The other one was a project that
was delayed by the government shutdown. So now we have two themes in these stocks. Today's government shutdowns showing up as delays to two of these companies. But HP enterprises on a backfoot after a week sales outlook down nearly ten percent.
Well, I don't think we can put government shutdown as a theme for Alta Beauty. But they're getting to glow up this morning.
Yes they are.
With Alta Beauty. The theme is Korean beauty products. Those are really paying off for Alta Beauty. The shares are up just less than six percent. They raise their full year outlook. It's also a decent sign on discretionary consumer spending as well. Nathan Net sales rose thirteen percent in the most recent quarter, boosted by their pushing a k
beauty products, which is also knows Korean beauty products. One of their hottest selling items, Nathan, which I know you probably used daily, is a snail mucus black snail mucus.
Oh, how'd you know?
It's essentially very good for your skin.
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 Apple CarPlay and Android Auto with the Bloomberg Business app.
Mm hmm