Opendoor, Warner Bros Discovery, Adobe, Microsoft and SK Hynix

Shares in the meme stock were in the red in pre-market trading after skyrocketing 78% higher on Thursday after it named Shopify executive Kaz Nejatian as CEO and co-founder Keith Rabois as chairman.

“Literally there was only one choice for the job: Kaz. I am thrilled that he will be serving as CEO of Opendoor (OPEN),” Rabois said. “He is a proven executive with a founder's brain. He is the right leader to unlock Opendoor's unique data and assets as we build on Opendoor's original mission, now enhanced as an AI-first company.”

Opendoor's (OPEN) stock hit a 52-week high, with shares up more than 500% year-to-date. The company's rally follows a rough start earlier in the year, when shares briefly traded below $1, putting the company at risk of being delisted from the Nasdaq (^IXIC).

The recent leadership changes come on the heels of former CEO Carrie Wheeler's resignation last month. Wheeler stepped down following intense pressure from investors, including Rabois and hedge fund manager Eric Jackson. Jackson, a key figure in the stock's resurgence, has been vocal about the company's potential and its direction under new leadership.

Opendoor (OPEN), which went public through a special purpose acquisition company (SPAC) in 2020, has focused on disrupting the real estate market by using technology to buy and sell homes, generating profits by pocketing the difference. Nejatian, now at the helm, has expressed his intention to revolutionise the home-buying process, making it “radically simpler, faster and more certain” with the help of artificial intelligence.

Shares in Warner Bros Discovery (WBD) were 4% higher ahead of the US opening bell, after climbing 29% in Thursday's session, fuelled by reports that Paramount Skydance (PSKY) is preparing a takeover offer.

According to a Wall Street Journal report, Paramount (PSKY) is planning a majority cash bid for WBD (WBD), with the offer reportedly being backed by the Ellison family. The deal, if it materialises, would mark a major shake-up in the US entertainment and media industry, combining some of the most iconic brands across TV, cinema, and news for the first time.

A merger between Paramount (PSKY) and Warner Bros Discovery (WBD) would unite an large portfolio of assets, including Warner Bros movie studios, CNN, the DC Comics franchise, and TV networks such as HBO, among others. Paramount, in turn, boasts its own properties, such as Paramount Pictures, CBS in the US, Channel 5 in the UK, and popular networks like Comedy Central and MTV.

Such a combination would reshape the landscape of US media, bringing together household names like South Park and Superman, 60 Minutes and CNN, under one corporate umbrella.

The scale of the potential combination could bring antitrust and regulatory scrutiny.

Mike Proulx, research director at Forrester VP, said: “If this buyout were to actually happen it would redefine the streaming landscape through further consolidation. A new streaming service by combining HBO Max with Paramount+ would have the scale to better compete against Netflix and the unified Disney+ and Hulu library.

“This could be good for consumers in the form of cost savings, but it also would reduce marketplace choice. What’s clear is that as the streaming market matures, it’s looking a whole lot like the OG television industry—all the way back to when there were just a few big networks and studios.”

Skydance, run by David Ellison, the son of billionaire Oracle (ORCL) founder Larry Ellison, closed its deal to merge with Paramount (PSKY) weeks ago.

Shares in Adobe (ADBE) were 3% higher in pre-market trading as the software maker reported better-than-expected results for the fiscal third quarter.

For the quarter ending 29 August, Adobe (ADBE) posted an 11% increase in revenue, rising to $5.41bn from $4.88bn a year earlier. Net income also saw a boost, climbing to $1.77bn, or $4.18 per share, compared to $1.68bn, or $3.76 per share, in the same period last year.

Looking ahead to the fourth quarter, Adobe (ADBE) provided an optimistic outlook. The company expects adjusted earnings per share to be in the range of $5.35 to $5.40, slightly above the average analyst estimate of $5.34. Adobe also forecast revenue for the quarter between $6.08bn and $6.13bn, in line with analysts' expectations.

Additionally, Adobe (ADBE) raised its forecast for annualised revenue in its digital media business, now expecting growth of 11.3% for the fiscal year, up from its previous projection of 11%. Digital media revenue for Q4 is expected to fall between $4.53bn and $4.56bn, surpassing the $4.51bn average estimate from analysts.

A key growth driver for Adobe (ADBE) has been its push into artificial intelligence.

“Our AI-influenced ARR has now surpassed $5bn, up from over $3.5bn exiting fiscal year 2024 and we have already surpassed our full year AI-first ending ARR target,” CEO Shantanu Narayen told analysts on a conference call.

Shares in Microsoft (MSFT) were higher in pre-market trading after the company announced on Thursday that it had signed a non-binding agreement to redefine its relationship with OpenAI, paving the way for the latter to restructure itself into a for-profit entity.

While the details of the new commercial arrangements remain under wraps, both companies confirmed they were working to finalise the terms of a definitive agreement. This development marks progress in OpenAI's ongoing discussions with Microsoft (MSFT), as the AI startup seeks to raise capital through a more traditional governance model, with the potential to eventually go public to fund its ambitious AI development efforts.

According to The New York Times, the agreement addresses how the two companies will share technology and the revenue generated from it. It also reportedly revises a clause in the original deal that had restricted Microsoft's (MSFT) access to OpenAI's most advanced technologies if the AI reached the threshold of human-like artificial general intelligence (AGI).

In addition to the new deal, the NYT reported that OpenAI is providing an equity stake worth at least $100bn to its nonprofit arm, which will continue to oversee and control the organisation.

Microsoft's (MSFT) involvement with OpenAI began in 2019 with a $1bn investment, followed by another $10bn at the start of 2023. Under their previous arrangement, Microsoft held exclusive rights to sell OpenAI's software tools through its Azure cloud platform, along with preferential access to OpenAI's technology innovations.

Shares of South Korean memory chipmaker SK Hynix (000660.KS) surged on Friday after the company announced that it is ready to begin mass production of its next-generation high-bandwidth memory (HBM) chips, a move that keeps it ahead of its competitors.

HBM technology, which is essential for artificial intelligence (AI) computing, is used in chipsets for AI applications, including in chips produced by global AI leader Nvidia (NVDA), a major client of SK Hynix.

Earlier this year, SK Hynix (000660.KS) revealed that it had already shipped samples of its HBM4 chips to customers, positioning itself to outpace rivals like Samsung Electronics (005935.KS) and Micron Technology (MU).

In its announcement on Friday, the company confirmed that it had completed its internal validation and quality assurance processes for HBM4, clearing the way for large-scale production.

“Completion of HBM4 development will be a new milestone for the industry,” said Joohwan Cho, head of HBM development at SK Hynix (000660.KS).

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