Warner Bros Extends Gains; Adobe Rises; RH Slides

On this episode of Stock Movers:
- Warner Bros. Discovery (WBD) shares climb after Paramount Skydance, the Hollywood studio taken over by independent filmmaker David Ellison, was said to be preparing a bid for the company. Meanwhile, shares in Paramount rise 2%.
- Adobe (ADBE) shares rise after the maker of software for creative professionals reported third-quarter results that beat expectations and raised its full-year forecast on key metrics. Analysts cited annual recurring revenue (ARR) as a highlight, and the report was seen as easing concerns about competition from AI.
- RH (RH) shares slide after the upscale furniture retailer cut its revenue forecast for the full year amid mounting impacts from new US tariffs and the delay of its seasonal catalog. Chief Executive Officer Gary Friedman told analysts that the industry needs to offer discounts to stay afloat due to the weak housing market.

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Episode Transcript

Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news, The Stock Movers Report,
your roundup of companies making moves in the stock market,
harnessing the power of Bloomberg Data. Let's take a look
at some stocks on the move today. I'm Tom Keane
with David Gura and Bloomberg's Lisa Monteo.

Speaker 2 (00:23):
Lisa, quickly, here a selected stock.

Speaker 1 (00:26):
Look, you got it.

Speaker 2 (00:27):
I want to start with Warner Brothers Discovery ticker WBD.
Their shares have been up as much as eight percent.
That's after yesterday's twenty nine percent rally. The reason why,
Source is saying David Elison's Paramount Skuidance planning a bid
for the seventy one billion dollar company. So what a
merger would do. It would trink Hollywood's major legacy studios
to four and it would unite some of the biggest

(00:47):
names of news, movies, TV. That said, it could also
face regulatory, financial, operational, investor hurdles. All of that and
possible even interference from President Trump. So something David Ellison
He's used to. He spent two years trying to get
his hands on Paramount Global before the takeover. Also, remember
Warner Brothers about to split into two right, one part

(01:08):
owning streaming and studio operations, the other cable channels like TNT.
But just something to think about on the consumer side,
So this deal would mean less competition for streaming. When
there's less competition, prices start to increase, so just keep
that in mind. I want to take you to software
maker Adobe ticker ADBE. Their shares have been out nearly

(01:29):
three percent strong quarterly revenue outlet boosted its annual forecast,
heavily investing in AI features for products like its Photoshop
that people are very familiar with the AI features, often
based on its own generative models, but annual recovering revenue
from AI influenced products it surpassed five billion. And that's
what investors like because they were worried if Adobe would

(01:50):
be able to make money from its AI from innovation,
so this was a big good news for them. And
it's facing a lot of competition from places like Canva
and AI native tools like mid Journey, so it has
a lot of competition. So that's on the upside, right,
But I also want to hit the downside. That's luxury
furniture retailer ourh who shares have been down as much
as twelve percent cut its revenue forecast for the year.

(02:13):
It pointed to growing impacts from tariffs a delay in
its seasonal catalog. It's CEO said something interesting. He gave
analyst some insight into what the industry needs to do
to stay afloat, and he said, you know what, we
need to offer discounts because of the weak housing market.
So OURH has tried different things. They have a membership
program offers lower prices to those who pay a fee,

(02:34):
a two hundred dollars annual fee. But I've known of OURH,
so I kind of checked on their website as to
how high these prices really are. And if you look
at the event dining table EVET dining table, it starts
at two four hundred and ninety five dollars. That's for
the dining table. If you want one chair, it'll cost
you about one one hundred and fifty dollars. So it's

(02:56):
it's high prices and the CEO is saying, you know,
we may have to start taking this down.

Speaker 1 (03:02):
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