Market Today: Warner Bros. Discovery Plummets, Amazon Cuts Jobs

Warner Bros. Discovery (WBD, Financial) experienced a significant drop in its stock value, plunging 18% after releasing disappointing earnings results. Despite having the year’s top-grossing movie, “Barbie,” the company’s shares suffered due to a challenging domestic advertising market and uncertainties around content production post-strike. Analysts, however, see potential in the company’s strategic investments in streaming video and international expansion.

Amazon (AMZN, Financial) has begun layoffs within its music streaming division, signaling a broader workforce reduction that has also affected Amazon Studios, Prime Video, and Music. The company has emphasized its focus on long-term business health and customer priorities, even as it continues to invest in Amazon Music. This move follows the discontinuation of Amazon’s live-streaming app and previous layoffs in its communications staff.

Devon Energy (DVN, Financial) saw its shares dip despite surpassing Q3 earnings and revenue expectations. The decline in free cash flow and lower oil volumes, coupled with higher capital spending, contributed to the stock’s downturn. Devon’s Q3 net income fell year-over-year, with a decrease in total realized price per barrel of oil equivalent. The company anticipates a production drop in Q4, primarily due to declines in the Williston Basin and completion timings in the Delaware Basin.

iRobot (IRBT, Financial) shares fell after the Federal Trade Commission announced a closed-door meeting, leading to speculation about the potential vote on Amazon’s planned acquisition of the company. iRobot had already been under pressure following a Q3 earnings report that missed expectations. Investors are closely watching the FTC’s actions, which could significantly impact iRobot’s future.

US Steel (X, Financial) experienced a brief uptick in its stock price amid rumors that ArcelorMittal (MT, Financial) is leading the bid to acquire the steelmaker. Speculation includes a potential partnership with Nippon Steel for the acquisition, despite conflicting reports about Cleveland-Cliffs’ (CLF, Financial) position in the buyout process. The market is awaiting further developments as final bids for US Steel are expected soon.

B. Riley (RILY, Financial) saw its stock price drop sharply as allegations of fraud surfaced against the head of one of its companies, Franchise Group. B. Riley’s CEO defended the investment and relationship with Franchise Group, expressing confidence in the potential financial returns for shareholders.

Plug Power (PLUG, Financial) experienced a decline ahead of its Q3 earnings report, with investors concerned about the company’s margins and hydrogen production targets. The stock has been under pressure due to the high short interest and profitability concerns, despite the growing interest in green hydrogen as a clean energy source.

VanEck expressed a bullish stance on the commodities market, predicting the early stages of a supercycle. The firm anticipates that the trend of commodities outperforming stocks will continue, driven by a new regime of higher interest rates and inflation.

Qorvo (QRVO, Financial) saw an increase in its stock value amid speculation of an activist investor’s involvement following a significant purchase of shares by Barclays. The market is speculating on the potential actions of Elliott Management, which has a history of taking significant stakes in companies.

Google (GOOG, Financial) (GOOGL, Financial) announced that its new AI-focused processors will be utilized by AI startup Anthropic, highlighting Google’s efforts to enhance its cloud computing capabilities. This move comes as Google competes with Amazon Web Services and Microsoft Azure in the cloud space.

Unity (U, Financial) is set to report its Q3 results with expectations of strong earnings per share and revenue growth. The company’s recent pricing policy issues and leadership changes have created uncertainties, but the strength of its core game development engine is expected to drive positive performance.

Shift4 Payments (FOUR, Financial) stock surged after the company reported strong Q3 earnings and raised its adjusted EBITDA outlook for the year. The company’s payment processing solutions continue to drive growth, with an increase in payment volume and revenue projections.

The FDA approved Eli Lilly’s (LLY, Financial) GLP-1 receptor agonist Zepbound for weight loss, setting the stage for competition in the obesity drug market. The approval allows Eli Lilly to challenge Novo Nordisk’s (NVO) dominance with its drug Wegovy.

Microsoft (MSFT, Financial) reached an all-time high stock price, with analysts highlighting the company’s strong management and potential for AI-driven growth. The company’s stable core business and innovative AI products are expected to contribute to its continued success.

Activist investor Nelson Peltz (Trades, Portfolio) is weighing his options with Walt Disney (DIS, Financial) as he awaits the company’s Q4 results. Peltz’s decision on whether to initiate a proxy fight for board nominations will be influenced by Disney’s performance and future outlook.

Upstart Holdings (UPST, Financial) stock plummeted after the company reported disappointing Q3 results and a bleak Q4 revenue forecast. The lending platform is facing market challenges and funding difficulties in a high-interest-rate environment.

Pampa Energia (PAM, Financial) reported its Q3 earnings, with a decrease in revenue year-over-year. The company’s performance continues to be monitored by investors interested in the Argentinean market.

Novavax (NVAX, Financial) is preparing to release its Q3 results, with the market focused on the uptake of its recently launched COVID vaccine. The company remains behind its competitors in the U.S. immunization drive, and investors are looking for updates on vaccine sales and profitability.