Breakfast News: Paramount Merger Cleared

Breakfast News: Paramount Merger Cleared

Source: Image Created by Jester AI.

1. FCC Greenlights Paramount-Skydance

The merger of Paramount (PARA -1.66%) and Skydance Media got the nod from the Federal Communications Commission (FCC) yesterday, with commissioners voting 2-1 to approve the $8 billion deal. It paves the way for Skydance CEO David Ellison to take control.

• "Commitment to unbiased journalism": Paramount recently settled a legal claim by President Trump over a Kamala Harris interview, as FCC head Brendan Carr says he welcomes Skydance's ideas for change.
• "Purely a financial decision": CBS, owned by Paramount, last week announced the ending of The Late Show – hosted by Trump critic Stephen Colbert – due to a "challenging backdrop" in late-night TV.

2. Kinsale Bounces Back, Intel Disappoints

Ranked 11th across all TMF recommendations for its ability to beat the market over the next five years, Kinsale Capital (KNSL 0.37%) reported its highest net income ever in yesterday's second-quarter earnings release, after a previous quarter hit by disaster losses.

• "Disciplined underwriting and technology-enabled expense management": CEO Michael P. Kehoe stressed careful financial control, as the specialty insurer returned a modest $10 million in buybacks in the quarter.
• Down 4% in pre-market trading: Intel (INTC -8.53%) beat Q2 revenue estimates but missed on earnings, and warned it may suspend its leading-edge 14A chip project if it doesn't find a major customer.

3. Friday's Key Pre-Market Earnings

Stock Advisor rec HCA Healthcare (HCA -2.14%) will post Q2 earnings after beating Wall Street expectations in Q1. Watch for expected advances in AI technology, as analysts predict a 5.6% revenue rise year over year.

• Recommended by Dividend Investor in May: It's Q2 time for Phillips 66 (PSX 0.43%) posted $2.38 adjusted Q2 earnings per share, with the oil refiner operating at 98% capacity. The company returned $906 million to shareholders through dividends and buybacks.
• Record $38 billion backlog: Booz Allen Hamilton (BAH -1.80%) hit Q1 revenue and earnings estimates with adjusted earnings per share up 7.2%. The record backlog means a book-to-bill ratio of 1.42x.

4. Summer Meme Stock Madness

The week saw a new wave of meme stock gains, as Krispy Kreme (DNUT 3.02%), Opendoor Technologies (OPEN 4.34%), Rocket (RKT 0.94%), and Kohl's (KSS -6.16%) – which pundits dubbed DORK based on ticker initials – all briefly doubled in value Tuesday, led by Reddit's (RDDT 1.13%) r/WallStreetBets traders again.

• Ending the week ahead: They fell back, but – by close Thursday – all bar Rocket were still around 40% ahead over five trading days.
• "Sydney Sweeney Has Great Jeans": News of the A-list actress starring in a new promotion prompted American Eagle Outfitters (AEO 4.21%) to join the DORK four, up 12%.

5. Uber Prioritizes Women's Safety

Rule Breakers rec Uber (UBER 0.47%) will allow female passengers and drivers to opt for women-only rides, following lawsuits from a number of customers claiming sexual assault and harassment.

• "It's about giving women more choice": Camiel Irving, vice president of U.S. and Canada operations, said trials will take place in Los Angeles, San Francisco, and Detroit "in the next few weeks."
• Robotaxi revolution: Uber, meanwhile, has partnered with Lucid (LCID -2.34%) and Nuro to take on Elon Musk's ambitious plan for Tesla's (TSLA 3.49%) robotaxi service to reach "half the population of the U.S." by the end of 2025.

6. Food for Thought

"The most significant mistake that an investor makes is selling a winner too soon. We don't think that because when we look at our portfolio and see a stock that's down 37%, we think 'that's the worst mistake I've made.' The biggest loser, though, is the winner you sold too soon." – Tom Gardner, Motley Fool co-founder and CEO