Overview
- Oakmark reported that Warner Bros. Discovery agreed to sell its Streaming and Studios businesses to Netflix and planned to spin Global Networks to shareholders, followed by a direct $30 per share takeover offer from Paramount Skydance for the entire company.
- Alphabet was named a top contributor after stronger-than-expected earnings, faster Search growth, and better Cloud results linked to accelerating demand for AI compute.
- The Oakmark Fund added CDW, citing its shift toward software and services, expanding margins, and expected support from cybersecurity needs and generative AI projects.
- Value-focused positioning featured AerCap, initiated near book value for secular travel tailwinds, and Targa Resources, highlighted for Mont Belvieu fractionation scale and predominantly fee-based earnings.
- Detractors included Paycom, which declined alongside application software peers despite an active buyback stance, and Alibaba, where Quick Commerce subsidies pressured earnings as the firm continues to invest in AI.