Core Insights - Tesla's revenue increased by 12% year on year in Q3, marking the first rise in three quarters, but net income fell by 37% compared to the previous year [1][2] Financial Performance - The decline in net income is attributed to lower vehicle prices aimed at competing with Chinese manufacturers and a 50% rise in operating expenses, partly due to investments in artificial intelligence and R&D projects [2] Market Reaction - Following the earnings report, Tesla's shares dropped by 3.8% in extended trading, reflecting investor dissatisfaction [3] - The negative sentiment was compounded by disappointing earnings reports from Netflix and Texas Instruments, which saw their shares decline by 10% and 5.6% respectively [3] Broader Market Impact - The declines in major tech stocks contributed to a broader market downturn, with the S&P 500 and Nasdaq Composite experiencing declines for October [4] - Upcoming earnings reports from major tech companies like Alphabet, Apple, Meta, and Microsoft could influence market recovery in the remaining trading days of October [4]

Core Viewpoint - Paramount Skydance CEO David Ellison is cautious about overpaying for Warner Bros. Discovery (WBD) and believes he may not need to exceed $25 per share due to various factors, including support from Donald Trump [1][3]. Bid Details - Paramount has made an offer of $24 per share for WBD, with sources indicating the exact bid was $23.50 [2]. - WBD's stock rose 11% following the news of the bid, closing at $20.53, but Ellison has no plans to increase his offer above $25 [3]. Competitive Landscape - Ellison is advised that U.S. antitrust concerns and personal animosities will hinder rival bidders, particularly Comcast, which is led by Brian Roberts, a figure Trump reportedly dislikes [3][4]. - Comcast has shown interest in acquiring WBD but faces challenges due to its ownership of MSNBC and NBC, which are viewed unfavorably by Trump [6][12]. Strategic Considerations - Zaslav, WBD's CEO, has rejected three offers from Paramount, with the last being around $24 per share, and is aiming for a sale price of up to $30 per share, valuing WBD at over $70 billion [9]. - Internal advisors suggest that Ellison may consider a hostile bid if necessary, as they believe Zaslav has limited options [10]. Regulatory Environment - There are concerns that Trump's FCC would block Netflix's potential acquisition of WBD's streaming platform due to antitrust issues, as Netflix is the leading streaming service [13]. - Amazon is also interested in WBD's assets but faces regulatory hurdles due to a consent decree with the FTC [16]. Market Position - WBD has established itself as the No. 1 studio and has the No. 3 streaming service since its formation in 2022 through the merger of Discovery Inc. and Warner Media [10].

Core Insights - The entertainment industry is undergoing significant transformation, with Disney and Warner Bros. Discovery at the forefront, adapting to streaming trends and redefining their business models [1][2] Company Overview - Disney is a century-old entertainment leader with diverse operations in film, television, theme parks, and streaming [2] - Warner Bros. Discovery was formed from the 2022 merger of WarnerMedia and Discovery, creating a diversified content ecosystem that includes HBO, Warner Bros. Pictures, and CNN [2] Strategic Positioning - Warner Bros. Discovery operates across Studios, Streaming, and Linear Networks, leveraging a large content library and global production capabilities [4] - Disney is focusing on restoring earnings momentum through a transformation that emphasizes streaming and experiences, with a disciplined approach to cost management [8] Financial Performance - Warner Bros. Discovery's Studio revenue for Q3 2025 is estimated at $2.77 billion, a 5.6% increase year-over-year, driven by franchises like Harry Potter and DC Universe [5] - Disney's Direct-to-Consumer revenue for Q4 2025 is projected at $6.3 billion, reflecting a 9.01% year-over-year growth, supported by subscriber growth across Disney+, Hulu, and ESPN+ [10] Growth Drivers - Warner Bros. Discovery's streaming platform, Max, is expanding in 77 markets with a strong lineup of franchise and original content [5] - Disney's Experiences segment, including Parks and Resorts, is expected to generate $8.22 billion in revenue for Q4 2025, driven by strong attendance and guest spending [11] Valuation and Market Performance - Disney has a forward price-to-sales (P/S) ratio of 2.04X, higher than Warner Bros. Discovery's 1.33X, indicating greater market confidence in Disney's diversified business [13] - Year-to-date, Warner Bros. Discovery's shares have increased by 92.4%, while Disney's shares have appreciated by 2.5%, reflecting differing investor sentiments [16] Conclusion - Both companies are adapting to a streaming-first landscape, with Warner Bros. Discovery showing operational progress but facing volatility due to restructuring, while Disney is positioned for sustainable long-term value through improving margins and global expansion [19]

Good Wednesday morning from Yahoo Finance's New York City headquarters studios. I'm Yahoo Finance executive editor Brian Sazi. You're watching Noah Holdings, ringing the opening bell at the NYC. If you never heard of this company, no is a wealth manager that serves global Chinese high- netw worth investors and Hong Kong based restaurant group Master Beef Group getting trading under uh away at the NASDAQ. Master Beef, interesting. All right, earning season is very much in full swing. Investors are still pick ...

Group 1 - Warner Bros. Discovery confirmed it had received "unsolicited interest" from multiple parties [1]

Fox Corporation (FOXA) is a major American media company known for its news, sports, and entertainment content, headquartered in New York City. In recent times, Fox has spent money buying new companies, such as Red Seat Ventures and Caliente TV. It also started Fox One, a new streaming service, showing it wants to grow further in entertainment and digital media. The company has a market capitalization of $25.92 billion. Fox Corp is set to report its first-quarter results for fiscal 2026 on Oct. 30, 2025, ...

Gold and silver gave back more ground in the early going after an intense selloff yesterday. Equities and Treasuries are mostly flat, while crude oil and the dollar are rising modestly. To get more articles and chart analysis from MoneyShow, subscribe to our Top Pros’ Top Picks newsletter here.) What started as a pullback Tuesday turned into a rout in the precious metals market, with gold sliding more than 6% (and another 3% this morning). That put the metal on track for its worst selloff in 12 years. Si ...

Earnings Overview - Earnings season is gaining momentum with major companies like Tesla, Netflix, General Motors, and Ford reporting results this week [1][3] - As of October 17, 12% of S&P 500 companies have reported results, with analysts expecting an 8.5% increase in earnings per share for Q3, marking the ninth consecutive quarter of positive earnings growth but a slowdown from the 12% growth in Q2 [1][2] Sector Performance - A diverse range of sectors is represented in the earnings reports, including airlines, toy manufacturers, and telecom providers, with consumer spending updates expected from companies like Procter & Gamble and Deckers Outdoors [4] - Companies such as GE Vernova reported a 55% increase in orders to $14.6 billion, driven by its power and electrification equipment division, despite profits being below expectations [8][9] Company-Specific Highlights - Hilton reported adjusted earnings of $2.11 per share, exceeding expectations, while revenue per available room (RevPAR) declined 1.1% year-over-year [11][12] - AT&T surpassed subscriber estimates due to strong demand for bundled services and iPhone promotions, leading to a nearly 2% rise in stock [13][14] - Intuitive Surgical's stock surged 15% after beating earnings estimates, driven by strong demand for surgical robots [15] - Texas Instruments' stock fell 7% following a weaker-than-expected Q4 outlook, with projected sales of $4.22 billion to $4.58 billion [16][17] - Capital One reported a 23% increase in total net revenue to $15.4 billion, with earnings per share of $4.83, surpassing expectations [19][20] - Philip Morris experienced an 8% drop in stock after reporting a 3.2% decline in cigarette shipments, although smokeless product shipments increased by 16.6% [21][22][23] - 3M raised its annual earnings outlook after reporting sales of $6.3 billion, slightly above estimates, with adjusted earnings per share of $2.19 [24][25] - Halliburton's stock rose over 5% after reporting adjusted earnings of $0.58 per share, exceeding estimates despite a revenue decline to $5.6 billion [26][27] - GE Aerospace's stock increased over 2.5% after reporting a 26% revenue growth to $11.3 billion and raising its full-year EPS forecast [30][31] Market Sentiment - Bank of America noted that 76% of S&P 500 companies reporting so far have exceeded earnings expectations, indicating a stronger-than-usual earnings season [42][43] - Ally Financial reported better-than-expected consumer health, with earnings per share of $1.18, surpassing estimates [45][46]

Earnings Overview - Earnings season is underway with major companies like Tesla, Netflix, General Motors, and Ford reporting results this week [1] - As of October 17, 12% of S&P 500 companies have reported, with analysts expecting an 8.5% increase in earnings per share for Q3, marking the ninth consecutive quarter of positive growth but a slowdown from 12% in Q2 [1][2] Company-Specific Highlights - **Netflix**: Stock fell after missing earnings estimates, with operating profit impacted [8] - **Thermo Fisher Scientific**: Reported Q3 earnings of $5.79 per share, exceeding estimates of $5.50, and revenue of $11.1 billion, above expectations of $10.9 billion [11] - **Mattel**: Stock dropped nearly 6% after reporting earnings of $0.89 per share, below the expected $1.03, and revenue of $1.73 billion, short of the $1.83 billion forecast [13][14] - **GE Vernova**: Stock rose nearly 4% with orders up 55% to $14.6 billion, although profits of $1.64 per share were below expectations of $1.86 [16][17] - **Hilton**: Adjusted earnings per share of $2.11 beat expectations of $2.05, despite a 1.1% decline in revenue per available room [19][20] - **AT&T**: Surpassed subscriber estimates due to strong demand for bundled services, leading to a nearly 2% stock rise [21] - **Intuitive Surgical**: Stock jumped 15% after beating earnings estimates due to strong demand for surgical robots [22] - **Texas Instruments**: Stock fell 7% on a weaker-than-expected Q4 outlook, with projected sales of $4.22 billion to $4.58 billion [23][24] - **Capital One**: Reported a 23% increase in net revenue to $15.4 billion, with earnings per share of $4.83, above expectations [26] - **Philip Morris**: Stock fell 8% after reporting a 3.2% decline in cigarette shipments, although smokeless product sales increased by 16.6% [28][29] - **3M**: Raised its annual earnings outlook after reporting sales of $6.3 billion, slightly above estimates [31][32] - **Halliburton**: Stock rose over 5% after reporting adjusted earnings of $0.58 per share, exceeding estimates [33][34] - **GE Aerospace**: Stock rose over 2.5% after reporting adjusted earnings per share of $1.66, above estimates of $1.47 [36][37] - **Northrop Grumman**: Raised its 2025 profit forecast due to increased demand for defense products [41] - **Elevance Health**: Stock rose 6% after beating quarterly profit estimates [42]

Group 1: AI Industry and Regulation - Anthropic, an AI startup, is in conflict with the White House over AI regulatory policies, with CEO Dario Amodei defending the company against claims of being "woke" [1][5] - Anthropic opposes a proposed amendment to suspend state-level AI laws, leading to criticism from venture capitalist David Sacks, who accuses the company of fear mongering [5] - LinkedIn co-founder Reid Hoffman supports Anthropic, calling it "one of the good guys," despite his investments in rival OpenAI [5] Group 2: Netflix Financial Performance - Netflix missed analysts' earnings per share estimates for Q3, resulting in a more than 7% drop in shares, attributed to a dispute with Brazilian tax authorities [2] - The company announced a partnership with Hasbro and Mattel to bring merchandise related to the animated film "KPop Demon Hunters" to market [3] Group 3: Warner Bros. Discovery Corporate Strategy - Warner Bros. Discovery is open to a sale as it prepares for a corporate split, with shares rising 11% following the announcement [4][6] - The company has received unsolicited interest from multiple parties, including Paramount Skydance, and plans to review all options [6] Group 4: Consumer Behavior Trends - A survey by AlixPartners indicates that U.S. consumers are experiencing "discount burnout," with price being less important in purchasing decisions compared to the previous year [7][8] - Fashion prices have increased by an average of $17 from last year, with certain categories like jackets seeing larger price hikes [8] Group 5: Activist Investment in Six Flags - Activist investor firm Jana Partners, along with NFL star Travis Kelce, has acquired a 9% stake in Six Flags, aiming to enhance shareholder value and guest experience [10][11]