The latest Market Talks covering Technology, Media and Telecom. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.
1422 ET - SentinelOne's solid 3Q earnings are likely to be overshadowed by CFO Barbara Larson's sudden exit in the new year, analysts say. The move "comes as a surprise with Ms. Larson having joined just over a year ago, and as the company has started to exhibit more consistent execution and profitability," Deutsche Bank's Brad Zelnick writes in a note. Oppenheimer analysts say Larson's departure makes them "incrementally cautious" on the company's FY27 outlook, despite signs of strength in the earnings and management saying her exit is unrelated to the outlook. Shares are down 14%. (elias.schisgall@wsj.com)
1246 ET - Docusign's full-year outlook looks conservative, Wedbush analysts say. The stock is down 6.8%, as investors were looking for further confidence, the analysts say. Its guidance for billings, revenue and subscription sales were all just ahead of Wall Street estimates, but investors were hoping for a bigger beat, the analysts say. The outlook overshadowed strong earnings, which showed demand for eSignature and Docusign's AI product IAM. "While the company produced a relatively solid quarter, we believe the raised outlook remains conservative," the analysts say. (katherine.hamilton@wsj.com)
Netflix's acquisition of Warner Bros. is a major win for Imax, as the cinema-technology company already has a strong partnership with the streaming giant, Benchmark analysts say. "Imax Stands to Benefit from Netflix's Deal for Warner Bros. -- Market Talk," at 10:59 a.m. ET left out that the analysis was from Benchmark.
1148 ET - Netflix is taking on nearly $61 billion in debt in its $72 billion acquisition of Warner Bros. Netflix says it will use $10.3 billion in cash on hand and borrow $50 billion to fund the cash portion of the takeover. It will also shell out roughly $11.7 billion in stock to Warner investors and absorb Warner's $10.7 billion in studios and streaming debt in the deal, which carries an enterprise value of $82.7 billion. Netflix says it's committed to maintaining solid investment-grade credit ratings through rapid post-close debt reduction. Netflix slips 2.7%, while Warner is up 3.1%. (colin.kellaher@wsj.com)
1144 ET - Shopify had a strong Black Friday-Cyber Monday performance, says CIBC analyst Todd Coupland. The analyst points to merchants that generated $14.6 billion in sales, up 27% year-over-year and 24% on a constant currency basis. This exceeded industry benchmarks, Coupland notes, including Adobe's 9.4% growth estimate, Klaviyo's 12%, and CIBC's own web traffic data showing 18% growth for Plus merchants. Coupland notes the brief Cyber Monday outage affected only a subset of users and doesn't overshadow sales momentum. "Our conclusion is the pullback in Shopify's share price since reporting a strong 3Q and guidance for 4Q presents a further buying opportunity," he says. Shares are down 2%. (adriano.marchese@wsj.com)
1139 ET - Netflix's deal with Warner Bros raises some concerns, XTB's Kathleen Brooks writes in a note. The U.S. streaming company has agreed to buy Warner Bros. for $72 billion in a cash-and-stock deal. "Investors' lack of enthusiasm is down to multiple factors, including a track history of mega buyouts going sour and not delivering their promised returns," she says. Deals of this scale are complex, and flawless execution is crucial to realize their benefits, she adds. Investor sentiment is also weighed down by concerns that Netflix might need to sharply raise subscription prices to justify the deal, potentially slowing future revenue growth, she says. Some worry that gaining access to HBO and Warner Bros.'s catalog could reduce Netflix's incentive to invest in new, original content. Netflix shares are down 0.6% at $102.51. (najat.kantouar@wsj.com)
1100 ET - Netflix's deal with Warner Bros. isn't surprising but getting it cleared by regulators is likely to be more difficult, AJ Bell's Danni Hewson writes in a note. Netflix has agreed to buy Warner Bros. for $72 billion after the entertainment company splits its studios and HBO Max streaming business from its cable networks. "Splashing out so much cash was never going to make the share price jump with delight, but if this deal can clear those significant regulatory hurdles quickly there are likely to be considerable cost savings to be made," she says. How much of those savings flow to subscribers and whether Netflix's pricing power grows will be closely scrutinized in the coming months, she adds. Netflix shares are up 0.3% at $103.50. (najat.kantouar@wsj.com)
1059 ET - Netflix's acquisition of Warner Bros. is a major win for Imax, as the cinema-technology company already has a strong partnership with the streaming giant, Benchmark analysts say. Netflix and Imax previously said the streamer's upcoming Narnia movie, directed by Greta Gerwig, will have a limited Imax theatrical release next year, before debuting on the streaming service for Christmas 2026. The deal won't change Imax's near-term outlook given Warner Bros. commitments through 2029. "Instead, the combination amplifies Imax's role as the premier premium theatrical partner for the world's largest streaming platform, positioning the company to benefit from more event-style releases, deeper filmmaker alignment, and structurally stronger economics as Netflix expands its theatrical ambitions," the analysts write. (connor.hart@wsj.com) Corrections & Amplifications
This was corrected at 12:47 p.m. ET. Netflix's acquisition of Warner Bros. is a major win for Imax, as the cinema-technology company already has a strong partnership with the streaming giant, Benchmark analysts say. The original version left out that the analysis was from Benchmark.
1059 ET - The AI sector is likely to grow further and deliver gains in the coming years, BlackRock's Helen Jewell says at the Edelman Smithfield Investor Summit in London. The growth is, nonetheless, likely to be bumpy, with periods of volatility, she says. "AI is a multi-year trend. We are probably just very early days within it." (miriam.mukuru@wsj.com)
0837 ET - Movie theater operators will likely be unhappy with Netflix's $72 billion deal for Warner Bros. Shares of theater exhibitors such as Cinemark and AMC, have recently declined on concerns about a Netflix win, Wedbush analysts say in a research note, citing the possibility that Netflix would attempt to significantly shorten the theatrical window or bypass it altogether for most titles. That wouldn't happen for at least the next four years, though, the analysts add. That's because Warner Bros.' theatrical release slate has already been negotiated through 2029, and Netflix has stated it would honor those theatrical obligations. Shares of Cinemark fall 1.6% premarket, while AMC's stock slips 1%. (connor.hart@wsj.com)
0752 ET - Netflix's efforts to buy Warner Bros. Discovery's film and streaming businesses should go through despite concerns over antitrust intervention, Deutsche Bank analyst Bryan Kraft writes. A deal would succeed even if the Department of Justice brings an antitrust suit, Kraft argues, citing a video conference with legal expert Lawrence Frankel. However, the investigators could discover facts unknown to investors, and international courts could still intervene, Kraft warns. Netflix agreed to a $72 billion deal with Warner Bros. Discovery on Friday. Netflix's stock falls 2.4% pre-market following the announcement of the deal, while Warner Bros. climbs 1.7%. (josephmichael.stonor@wsj.com)
0504 ET - Netflix edges down in premarket trading while Warner Bros. Discovery climbs after reports that a deal between the two over an asset sale is imminent. Warner Bros. is up 2.1% and Netflix falls 0.6% premarket. The Wall Street Journal reported that Warner Bros. entered exclusive talks to sell its studios and HBO Max streaming business to Netflix, citing people familiar with the matter. Investors will question Netflix's ability to manage such a large company moving forward if the deal completes, XTB research director Kathleen Brooks writes. Moreover, the deal raises major antitrust and political hurdles and will be met negatively by markets, though it will accelerate transformation across the cinema industry, ING analyst David Vagman writes. (josephmichael.stonor@wsj.com)
(END) Dow Jones Newswires
December 05, 2025 16:50 ET (21:50 GMT)
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