Top Pros' Top Picks 12/5/25

Market Minute ⏱️ 12/5/25: Netflix in Mega-Merger, While Transports Play Catch Up

Mike Larson | Editor-in-Chief

Stocks are relatively muted in the early going today, while gold and silver are gaining a bit more ground. Crude oil, Treasuries, and the dollar are flattish, while Bitcoin is trading around $91,000.

We have another media mega merger to talk about today. Netflix Inc. (NFLX) is shelling out $72 billion in cash and stock to buy Warner Bros. Discovery Inc. (WBD), a deal that will link a streaming giant with one of Hollywood’s most storied movie and television production companies. NFLX is paying $27.75 per share for WBD, a small premium to yesterday’s close. But WBD shares had already more than doubled since September amid widespread takeover talk.

The firms estimate it will take as long as 18 months to close the deal, in part because regulators will scrutinize it carefully due to antitrust concerns. Warner will spin off its cable network division during the process, putting CNN, TBS, and TNT under a separate corporate umbrella.

IYT, DIA, IWM, SPY (YTD % Change)

As for markets, could the revenge of “old school” stocks signal more gains ahead? The Dow Jones Transportation Average has rallied nine days in a row, while the Russell 2000 Index of smaller-cap stocks just hit an all-time high.

If the transports can “confirm” the advance in the Dow Jones Industrial Average, then “Dow Theory” believers will get more bullish. Meanwhile, the Russell’s advance speaks to a broadening out of the gains beyond tech and AI stocks. The chart above shows how ETFs that track transports, the Dow, and the Russell 2000 are catching up to the 17.8% year-to-date advance in the SPDR S&P 500 ETF Trust (SPY).

Finally, is the Artificial Intelligence (AI) boom siphoning off key employees from Apple Inc. (AAPL)? That’s what a Wall Street Journal story implies, Apple's top designers, general counsel, an AI strategy head, its COO, and several underlings either leaving, taking on new roles, or heading to companies like OpenAI and Meta Platforms Inc. (META). Competitors are trying to develop new devices and services that could broaden the adoption of AI in the business and consumer worlds.

Markets: As the Rally Broadens Out, Focus on These THREE Key Opportunities

• GNRC: Ignore Short-Term Weather Impact, Focus on Long-Term Opportunity
  👉️ TICKER: GNRC
  Generac Holdings Inc. (GNRC) delivered a softer-than-expected third quarter, with revenue of $1.11 billion, down 5% year-over-year and missing estimates by about $79 million. On the surface the numbers look ugly, but the story is far less dramatic than the headlines suggest, writes Tom Hayes, editor of HedgeFundTips.

• Canadian Banks: How Earnings Looked at Three Top Institutions
  👉️ TICKERS: BMO, TD, CM
  The stock market is betting it is a done deal that interest rates will be cut next week by the Federal Reserve. Meanwhile, in Canada, we have banks guiding the tape after earnings, highlights Amber Kanwar, host of the In the Money with Amber Kanwar podcast.

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