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It’s Friday baby. Netflix is eyeing a historical deal to buy the legendary Warner Brothers company & own its IP. PCE inflation was up, but in line with expectations. Rate cut next week.
See more below!
📊 The Market Close: 12/5/25
Nasdaq (+0.3%)
S&P 500 (+0.2%)
Dow Jones (+0.2%)
📰 Major Headlines
Netflix Buys HBO 📺: Netflix announced a definitive agreement to acquire Warner Bros. Discovery's film and television studios, including HBO Max, for approximately $83 billion. This is Netflix's largest acquisition ever and totally reshapes the streaming landscape.
NFLX (Netflix): -3%. Investors were nervous about the size of the $83 billion acquisition and the regulatory scrutiny it would likely face.
WBD (Warner Bros. Discovery): +6%. Shares soared as the company benefited from the premium Netflix is paying for its studio and streaming assets.
PARA (Paramount Global): -10%. The stock was punished after the company lost the high-stakes bidding war for the WBD.
PCE Inflation Rises 🌡️: The Fed's preferred inflation gauge, Core PCE, came in at +0.2% for the month. Year-over-year PCE rose to +2.8% (the highest since April 2024), driven by goods like furniture and gasoline. This reading suggests inflation is sticky, but it shouldn’t complicate the case for a rate cut next week.
Consumer Spending Slows 📉: Real personal consumption expenditures growth for Q3 2025 was revised down significantly from 3.1% to 2.7%. This indicates consumers are pulling back on spending more than initially thought, which supports a weaker economic outlook for Q4.
SpaceX $800B IPO Target 🚀: Reports surfaced that Elon Musk's SpaceX is aiming for a potential public offering in the second half of 2026. The company is seeking an enormous $800 billion valuation for the entire company, including Starlink.
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⚠️ Disclaimer: I’m not a financial advisor — this newsletter is for informational and educational purposes only. Nothing here should be taken as financial advice or a recommendation to buy or sell any securities. Do your own research before making investment decisions.