Stock Movers Southwest Cuts Forecast, Warner Bros. Exclusive Talks; HPE Outlook Disappoints
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Dec 5, 2025 Southwest Airlines slashes its 2025 profit forecast, citing a dip in demand due to the government shutdown and rising fuel costs. Meanwhile, Netflix is in exclusive negotiations to acquire Warner Bros.' film and TV studios and HBO Max, with a hefty breakup fee on the table. In contrast, Hewlett Packard Enterprise faces a downturn as its sales outlook falls short, particularly for AI servers, amid delays caused by the ongoing shutdown. Exciting market shifts unfold!
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Southwest Lowers Profit Forecast
- Southwest cut its 2025 EBIT target to about $500 million from $600–800 million due to lower demand and higher fuel costs.
- The company said bookings have since returned to expected levels, suggesting the hit was temporary.
Netflix In Exclusive Talks For Warner Bros.
- Netflix entered exclusive talks to buy Warner Bros.' film and TV studios plus HBO Max, signaling consolidation in streaming.
- Netflix reportedly offered a $5 billion breakup fee if regulators block the deal, indicating regulatory risk is top of mind.
HPE Sales Outlook Falls Short
- Hewlett Packard Enterprise missed sales expectations and guided lower after some AI server deals were pushed into 2026.
- Management cited contract delays and a government shutdown-related pause as reasons for the weaker outlook.