LT Weekly: Oct 24, 2025
The markets maintained their positive momentum from the week prior, with the S&P 500 rallying +1.9% and Nasdaq increasing +2.3%, as both, once again, logged record highs. The macro themes generally remain the same with earnings really starting to ramp. On the plus side, according to FactSet, almost 30% of S&P 500 companies have now reported and 84% of those beat earnings estimates (which is higher than the 70% 5-yr avg). In our sector, Netflix as well as Connectivity giants AT&T and T-Mobile were the main earnings events.
In this edition we focused on the below key themes and developments:
- Earnings Scorecard – Week 1 & 2
- Netflix “Buying” Vs “Building” Remains Top Of Mind At The Moment
- Connectivity Part I: Concerns About Future Economics & Returns Weigh On Connectivity Stocks This Week - A Dive Into AT&T’s Results…
- Connectivity Part II: …T-Mobile Also Continues To Take Share
- The Predictions Markets Are Attracting More Capital As They Hit A New Records
- A New AI-Powered Web Browser Enters The Chat…OpenAI Launches Atlas
- Quantum Was In The Spotlight This Week As Google Makes Another Breakthrough And The US Govt Eyes The Space
- The Entertainment Sector Is Keeping Everyone On Their Toes
- Investors Continue To Worry About The Ad Agency Model…OMC’s Next Stop Is The IPG Merger
- The Week Started With The Cloud Crashing Down In A Major AWS Outage
**Also, please note that due to continued technical issues, we are not able to include direct URL source links in this document but we can send them to you upon request. We apologize for any inconvenience this may cause and hope to resolve the issue as soon as we can**
Separately, I also wanted to highlight that LionTree Advisors served as financial advisor to TodayTix on its sale to Ari Emanuel’s new global events company, MARI, and also served as exclusive financial advisor to SURJ Sports Investments on its funding of a new ATP Masters 1000 tournament in Saudi Arabia.
Have a nice weekend.
Best,
Leslie
P.S. If this email has been forwarded to you and you would to join our distribution list, please email me. Thanks!
Earnings Scorecard – Week 1 & 2
The final earnings season of 2025 kicked off last week and as always there is lots to cover. 17 companies have reported their third quarter results thus far, and stock reactions were, just barely, biased to the upside, with 9 companies (53%) trading up in reaction to their print, while 8 (47%) traded down. The worst performer was Coursera, down -12.9%, and the best performer was Publicis, up +5.2%.
Following Publicis’s report last week, fellow ad agency Omnicom posted its third quarter results this week, and the stock also rose in reaction, up +3.2% (see Theme #9).
Over on the media side, Netflix’s third quarter report caused the stock to fall -10.1% in reaction (see Theme #2 for more color on why). The connectivity sector also had a tougher run this week, with AT&T falling -1.9% after its report (see Theme #3) and T-Mobile down a steeper -3.3% (see Theme #4).
The table below includes select mid- and large-cap TMT and consumer companies in our LionTree stock universe that reported this week.