Warner Bros. Discovery Plans Major Split Amid Mixed Stock Movements

New York, NY – Warner Bros. Discovery announced plans to split into two publicly traded companies by next year, causing its shares to jump nearly 9% in pre-market trading. The split will separate the company’s streaming services and movie properties from its cable networks, which include CNN and TNT Sports.

Meanwhile, Tesla saw its shares drop about 2% after Baird downgraded the stock to neutral from buy. The downgrade stemmed from concerns regarding CEO Elon Musk’s comments on the company’s robotaxi plans, described by the firm as “a bit too optimistic.” The report also mentioned that Musk’s relationship with former President Donald Trump adds “considerable uncertainty” to the stock’s future.

EchoStar experienced a significant downturn, with shares falling 11% after the Wall Street Journal reported that the telecommunications company is considering filing for Chapter 11 bankruptcy. This move is intended to protect its wireless spectrum licenses currently under review by the Federal Communications Commission.

Shares of Robinhood and Applovin each fell about 4% after both companies were not included in the S&P 500, a move anticipated by investors following their recent stock advancements. Robinhood’s shares soared by more than 13% last week leading up to the announcement, while Applovin gained over 6%.

In contrast, IonQ‘s stock gained more than 7% after the company declared its agreement to acquire Oxford Ionics in a deal valued at $1.075 billion in cash and stock. This acquisition is expected to close in 2025.

McDonald's stock slipped nearly 1% following a Morgan Stanley downgrade from overweight to equal weight, citing that the fast-food giant has not been insulated from broader sector pressures.

Lastly, shares in Moelis & Co. were marginally lower after reports surfaced that CEO Ken Moelis plans to step down. He stated in an interview that he expects to take on the role of executive chairman effective Oct. 1, while Co-president Navid Mahmoodzadegan is slated to become the new CEO.