Trustpilot upgraded to “overweight” as Morgan Stanley sees value after 57% selloff

Investing.com -- Netflix has agreed to acquire Warner Bros. Discovery in a cash and stock transaction valued at $27.75 per share, with a total enterprise value of approximately $82.7 billion.

The deal, announced on Friday, follows a weeks-long bidding war where Netflix outbid Paramount Skydance’s nearly $24 offer with its nearly $28-a-share proposal. Trading in Warner Bros. Discovery stock was halted ahead of the announcement.

Under the agreement, Warner Bros. Discovery shareholders will receive $23.25 in cash and $4.50 in Netflix common stock for each share they own. The transaction is expected to close in 12-18 months, after the previously announced separation of WBD’s Global Networks division into a new publicly-traded company called Discovery Global.

The acquisition will bring together Netflix’s streaming platform with Warner Bros.’ iconic franchises including "Game of Thrones," "DC Comics," and "Harry Potter," further tilting the power balance in Hollywood toward the streaming giant.

"Our mission has always been to entertain the world," said Ted Sarandos, co-CEO of Netflix. "By combining Warner Bros.’ incredible library of shows and movies with our culture-defining titles, we’ll be able to do that even better."

David Zaslav, President and CEO of Warner Bros. Discovery, stated: "Today’s announcement combines two of the greatest storytelling companies in the world to bring to even more people the entertainment they love to watch the most."

Netflix plans to maintain Warner Bros.’ current operations, including theatrical releases for films. The company expects to realize at least $2-3 billion in annual cost savings by the third year and anticipates the transaction will be accretive to earnings per share by year two.

The deal will likely face strong antitrust scrutiny in Europe and the U.S. as it would give the world’s largest streaming service ownership of a rival that is home to HBO Max and nearly 130 million streaming subscribers.

To address potential regulatory concerns, Netflix has argued that combining its streaming service with HBO Max would benefit consumers by lowering the cost of a bundled offering.

David Ellison-led Paramount, which initiated the bidding war with unsolicited offers, questioned the sale process earlier this week in a letter alleging favorable treatment to Netflix.

Warner Bros. Discovery shares closed at $24.5 on Thursday, giving it a market value of $61 billion before the deal announcement.

Investing.com -- U.S. stock futures traded in tight ranges Friday ahead of the release of key inflation data, which could cement a Federal Reserve rate cut next week.

Here are some of the biggest premarket U.S. stock movers today:

• Netflix (NASDAQ:NFLX) stock fell 3% after the streaming giant agreed to buy Warner Bros Discovery’s TV and film studios and streaming division for $72 billion. Warner Bros Discovery (NASDAQ:WBD) stock fell 1.1%.

• Ulta Beauty (NASDAQ:ULTA) stock gained 6.3% after the cosmetics retailer topped Wall Street estimates for its fiscal third quarter and raised its full-year outlook.

• Hewlett Packard Enterprise (NYSE:HPE) stock slumped 9.3% after the cloud services and hardware company forecast first-quarter revenue below estimates, as it sees a fall in AI server income due to customers shifting their orders to the second half of the year.

• SoFi Technologies (NASDAQ:SOFI) stock slumped 7.4% after the fintech company announced an underwritten public offering of $1.5 billion of shares of its common stock.

• Cooper Companies (NASDAQ:COO) stock rose 13% after the health-care company issued earnings guidance for 2026 that topped expectations, while also launching a strategic review.

• Rubrik (NYSE:RBRK) stock surged 18% after the security and AI operations company reported a surprise earnings beat in the third quarter and provided a full-year outlook that exceeded Wall Street expectations on increased demand spurred by the artificial intelligence boom.

• Ford Motor Company (NYSE:F) stock rose 0.1% despite the National Highway Traffic Safety Administration stating that the auto giant has recalled 108,762 vehicles in the U.S. over issues with an improperly secured liftgate hinge cover that could detach from the vehicles.

Investing.com — The first week of December has left investors uneasy. The S&P 500 barely moved, and the market continues to drift without clear direction. Some traders see stretched valuations and worry that a correction may be approaching. Others believe the rapid spread of AI across the economy is about to spark a new wave of productivity and growth. The result is a market caught between fear and opportunity, which makes confident decision-making harder than ever.

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Investing.com — The first week of December has left investors uneasy. The S&P 500 barely moved, and the market continues to drift without clear direction. Some traders see stretched valuations and worry that a correction may be approaching. Others believe the rapid spread of AI across the economy is about to spark a new wave of productivity and growth. The result is a market caught between fear and opportunity, which makes confident decision-making harder than ever.

This kind of environment rewards investors who rely on more than instinct. It calls for a focused strategy built on high-conviction ideas supported by deep fundamental research and advanced AI analytics. That is where our approach stands out. Our AI-driven stock selections have a proven record of identifying future outperformers long before the broader market catches on. The latest update to our system went live on Monday, and the early results from the new list have already been remarkable.

*InvestingPro members can click HERE to jump straight to our new list of stock picks.

Still not a member? Then this is your chance to subscribe at up to 55% off and secure access to the top picks for December.

Here’s how some of our high-conviction picks have performed so far:

• NASDAQGS:FTRE Fortrea Holdings: +16.56% in December ALONE
• NASDAQGS:ENTG Entegris: +15.53% in December ALONE
• NYSE:ONTO Onto Innovation: +14.65% in December ALONE
• IBSE:VERUS Verusa Holding: +22.44% in December ALONE
• SET:AOT Airports of Thailand: +19.10% in December ALONE
• KOSE:A064400 LG CNS: +17.48% in December ALONE
• SGX:D01 DFI Retail Holdings: +16.81% in December ALONE
• IBSE:LIDER LDR Turizm AS: +16.34% in December ALONE

Among several others...

But how does the AI behind these picks actually work?

At the start of each month, the AI refreshes every strategy with up to 20 new stock picks, analyzing more than 150 investor-grade financial models built on over 15 years of global market data. It identifies where risk and reward align best — removing underperformers, keeping promising names, and adding fresh opportunities.

The strategies use equal weighting across all selected stocks, creating a transparent and consistent way to track results. The goal is not just to find winners but also to know when to move on from the ones that stop performing.

Check out the 12-year outperformance of Tech Titans over the S&P 500 below:

This means a $100K principal in our strategy would have turned into an eye-popping $2,757,500.

Use your chance to get InvestingPro with up to 55% off during our Cyber Monday Extended sale.

Disclaimer: Prices mentioned in articles are accurate at the time of publication. We regularly test different offers for our members, which may vary by region.