Stock Movers Warner Bros Discovery Rises, Oracle Down, Southwest Airlines Drops After Lowering Profit Target
Dec 5, 2025
Warner Bros Discovery's shares soar with Netflix's monumental $72 billion acquisition, hinting at a future TV network spinoff. Discussion on potential regulatory concerns surrounding this merger adds intrigue. Meanwhile, Oracle faces challenges with its AI infrastructure as shares dip ahead of earnings. Analysts predict robust fiscal sales despite rising debt risks. Lastly, Southwest Airlines struggles after downsizing its profit forecast due to the government shutdown and soaring fuel prices. The playful origins of its ticker symbol 'LUV' bring a lighthearted touch to the discussions.
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Netflix-WBD Deal Raises Consolidation And Regulatory Flags
- Netflix's proposed $72 billion deal for Warner Bros. Discovery values the company at a high 25.2x EBITDA multiple.
- The deal could trigger more industry consolidation but faces significant regulatory skepticism from the White House.
Oracle's AI Demand Fuels Sales — And Debt Concerns
- Bloomberg Intelligence expects Oracle to exceed $65 billion in fiscal 2026 sales driven by tight AI infrastructure demand.
- Oracle's rapid bond issuance to fund AI investments has pushed its credit-risk measure to levels not seen since the financial crisis.
Southwest Lowers Profit Target But Bookings Recover
- Southwest cut its full-year operating profit forecast to about $500 million, down from $600–$800 million, blaming the government shutdown and higher fuel costs.
- Bookings have since recovered to prior forecasts, which investors saw as a silver lining amid peak travel demand.