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The Stock Movers Report, your roundup of companies making moves in the stock market, harnessing the power of Bloomberg Data.
Let's take a look at some stocks on the move today. I'm normal Inda with Paul Sweeney and we're joined today by Bloomberg's Christine Aquino. Christine, what's on your mind today?
All right, Well, let's talk about Warner Brothers Discovery, which is on the other side of the biggest deal today possibly this week really, So those shares very much in agree in keeping with the rest of the market. Nora So ticker WBD shares are up three point eight percent at the moment, So definitely investors seeing positives at least from Warner Brothers perspective when it comes to this deal.
Seventies do billion dollars worth of equity with Netflix, and so Bloomery Intelligence analy is weighing in, right, So when they're looking at it from the epidem multiple twenty five point two x, that is at the higher range of the recent m and A in this space, and so
¶ Warner Bros. Discovery Netflix Deal
they're seeing that as a positive. And you know, the move will allow Warner Brothers to spin off it's TV network businesses by the third quarter of next year, and that could potentially bring forward more industry consolidation. But as we know, the hurdle with all these deals, of course, is regulation, right and TD Cowan all already warning that regulatory pushback might be the problem here. And of course we heard from CNBC earlier reporting that the White House
is apparently viewing to deal with quote heavy skepticism. What else do you have for us. Let's take a look at Oracle today, Paul. So that's another software CEO that is not exactly over cl shares up one point seven percent at the moment. We will get their earnings on the tenth of December, so a lot to look forward
to in that. And you know, we have Blooming Intelligence weighing in saying that they are confident that Oracle will be able to top their sixty five billion dollars of total sales in fiscal twenty twenty six because the contraints from their AI infrastructure remains tight. That means that businesses booming and they're all engaged cloud databases and another area that they're looking for some gains there. That expanded thirty two percent in the first quarter, so a lot of promise there.
¶ Oracle's AI and Debt Concerns
The focus though, and the question really is all about debt, right, because Oracle in some ways has been sort of the flagship of questions around how much these companies are borrowing
to finance their aideals. Oracle does not have as good of a credit rating as some of the cloud computing giants, and as a matter of fact, a measure of its credit risk actually closed at the highest level since the financial crisis this week because it has effectively sold tens of billions of dollars of bonds in recent months to finance some of their aideals. So big questions around their debt for sure.
Yeah, shares of Oracle taker o rcl up about thirty one percent so far this year. I want to talk about the airline space. We did hear from Delta more recently, and they were talking about the drags that happened because of the government shut down. But you're looking at Southwest and they're kind of saying something similar.
Yeah, exactly, Nora, So Southwest Taker l UV. Those shares are not doing too badly. Actually, they're very much in the green of five point eight percent. But we did hear from Southwest saying that they are lowering their operating profit target for the full year, again because of fallout from both the government's shutdown, but also higher fuel prices
as another reason that they're signing there. So now they're looking at their EBIT forecast approximately five hundred million dollars versus the prior expectation of six hundred million to eight
¶ Southwest Airlines Lowers Profit Forecast
hundred million, So quite the cut there. But the silver lining, and I think this is what investors are seizing on, is that they did say that their bookings have recovered to previous forecasts after a temporary slowdown, presumably because of the flight halts during the shutdown. So I think that's what investors is seizing on. Big travel season also, so I'm sure there's a lot of demand for Southwest tickets, all right. So Southwest Airlines the ticker is LUV LUV Yes, why why?
Why?
Don't know why? Tell us? Okay, Southwest Airlines is based at love Field. Oh, you're right, Worth area, so they just really leaned into that absolutely heritage for work area.
So the 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.