Morning Brew: Netflix Wrestles WWE Content, Market Eyes Fed Rate Moves

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Realty Income Corporation (O, Financial) has finalized its merger with Spirit Realty Capital (SRC), marking a significant move in the real estate investment trust sector. The all-stock deal results in the combined entity trading under the ticker O on the NYSE from today. This merger is expected to create a larger, more diversified portfolio of real estate assets, potentially increasing shareholder value. The transaction also included an exchange of Spirit's series A preferred stock for Realty Income's equivalent shares. The market is closely watching this merger as it could set the tone for future consolidations within the industry.

United Airlines (UAL, Financial) is considering moving away from Boeing's (BA, Financial) 737 Max 10 aircraft due to certification delays and recent safety concerns with the Max 9 model. United's stock saw a premarket increase of nearly 7% following the news. The airline's recent financial performance, with revenue beating estimates and a positive earnings per share figure, has also contributed to investor optimism despite potential losses from the Max 9 grounding.

Verizon Communications Inc. (VZ, Financial) experienced a premarket stock price increase after reporting fourth-quarter earnings that surpassed expectations. The company's wireless unit showed strong growth, contributing to a year-over-year increase in wireless service revenue. Despite a slight decline in overall revenue, the addition of 1.46 million retail postpaid net additions indicates a robust consumer demand for Verizon's services.

3M Company (MMM, Financial) shared its 2024 earnings guidance, which fell short of Wall Street expectations, causing a premarket drop in its shares. However, the company's fourth-quarter revenue and adjusted earnings per share exceeded estimates, reflecting a strong end to the year. Investors are weighing the implications of the conservative guidance against the backdrop of a solid quarterly performance.

Qualcomm Incorporated (QCOM, Financial) announced the promotion of Akash Palkhiwala to the dual role of CFO and COO. Palkhiwala's expanded responsibilities reflect his significant contributions to the company since joining in 2001. This leadership change is seen as a strategic move to strengthen Qualcomm's executive team as it navigates the competitive semiconductor industry.

Bristol Myers Squibb (BMY, Financial) has completed its acquisition of Mirati Therapeutics, a move that is expected to negatively impact Bristol Myers' 2024 adjusted earnings. Despite this, the acquisition is seen as a strategic effort to diversify Bristol Myers' oncology portfolio and enhance its pipeline for future growth. Mirati will now operate as a subsidiary, and its shares will cease trading on the Nasdaq Global Select Market.

Netflix (NFLX, Financial) has secured a landmark deal to become the exclusive home for WWE Raw and other WWE content in multiple regions starting in 2025. This agreement, reportedly worth over $5 billion, represents a significant shift in content distribution and could have far-reaching implications for the streaming and media landscape.

Raytheon Technologies (RTX, Financial) reported fourth-quarter earnings and revenue that beat estimates, with a notable increase in sales and a strong backlog. However, the company has revised its growth and margin expansion outlook for the coming years, reaffirming its commitment to substantial free cash flow by 2025.

Microsoft Corporation (MSFT, Financial) is expected to benefit from its range of generative AI products in the coming year, according to Morgan Stanley. With a high percentage of chief investment officers planning to adopt Microsoft's AI solutions, the company's stock could see positive momentum as it prepares to report its fiscal second-quarter results.

General Electric Company (GE, Financial) provided a first-quarter earnings guidance that was below analyst expectations, leading to a drop in its stock price in premarket trading. Despite this, GE's fourth-quarter performance exceeded estimates, with significant revenue growth and a positive outlook from the CEO.

Apple Inc. (AAPL, Financial) has been added to Bank of America's US 1 List, replacing Jazz Pharmaceuticals (JAZZ). This endorsement by the investment firm highlights Apple's potential for growth, driven by AI advancements and new product launches, and reinforces its status as a top investment pick.

Lockheed Martin Corporation (LMT, Financial) released its fourth-quarter earnings, surpassing expectations and providing a positive outlook for the upcoming year. The defense contractor's performance and projections are closely monitored as indicators of the health of the defense sector.

Invesco Ltd. (IVZ, Financial) saw its stock price decline after reporting an unexpected drop in net revenue for the last quarter, despite an increase in net long-term inflows and assets under management. The financial services firm's results have prompted investor caution as they assess the company's growth trajectory.

NetEase, Inc. (NTES, Financial) and Tencent Holdings Ltd. (TCEHY, Financial) experienced a surge in their stock prices following the removal of proposed draft rules for the online gaming industry by China's gaming regulator. The news has been positively received by investors, as it suggests a more favorable regulatory environment for the gaming industry in China.

Comscore, Inc. (SCOR, Financial) has entered into a multi-year agreement with Nexstar Media Group, Inc. (NXST) for cross-platform audience measurement. This partnership is expected to provide Nexstar with valuable insights across its various media platforms, and the financial terms of the deal have not been disclosed.

Jefferies has upgraded Teva Pharmaceutical Industries Ltd. (TEVA, Financial) to Buy, citing an attractive valuation and potential tailwinds for the company's product portfolio. The investment firm's increased price target reflects confidence in Teva's growth prospects and upcoming product launches.

Meta Platforms, Inc. (META) could see an increase in fourth-quarter revenue due to the expansion of ad load on its Reels product. Citi's raised price target on Meta reflects the potential for improved monetization and advertiser adoption of the social media giant's offerings.

Westlake Chemical Partners LP (WLKP, Financial) has announced its quarterly dividend, maintaining consistency with previous payouts. The company's forward yield and commitment to shareholder returns continue to be a focus for investors.


I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.