Calls of the Day: Netflix, Thermo Fisher, Incyte and Shake Shack

Mergers and Acquisitions - An analyst at NEM is bearish on a potential Warner Bros Discovery (WBD) deal, suggesting Netflix could lose in a Gen AI future and that WBD is an anchor, potentially putting $83 billion of additional value at risk [1] - One investor sold 85% of their Netflix holdings after the WBD announcement, fearing regulatory issues and competition from Paramount and Sky Dance [2] - The communication services sector is driven by cash, content, and consolidation [2] - There is a belief that Warner Brothers in the late 70s and early 80s is comparable to Netflix now, citing HBO's strong content at the time [3] - The importance of the content from Warner Brothers is potentially understated, and Netflix is expected to manage Warner Brothers better than it has been in the last 5 years [5] Company Performance and Outlook - Thermo Fisher Scientific was initiated at Goldman Sachs, seen as a diversified compounder benefiting from global supply chain shifts [6] - One firm increased its Thermo Fisher position at the beginning of the year, especially considering volatility in big pharma [6] - Insight reiterated a market perform rating for a $20 billion market cap bioarma company focused on oncology [7] - Recent corrective behavior in the bioarma company's stock is seen as working off overbought conditions, with a strong fundamental outlook [8] - Shake Shack, a small-cap name with a $3 billion market cap, has faced a tough second half due to affordability concerns, but has consistently delivered good earnings reports and guidance [9]