WSJ What’s News in Markets: Memory Chips, Corporate Drama, Mega IPO

Host: Francesca Fontana | Date: December 20, 2025

Episode Overview

This episode highlights the most significant stock movements and market news of the past week, focusing on technology sector momentum, dramatic corporate sagas, and a record-breaking IPO. Francesca Fontana delivers insights into how AI continues to shake up the chip industry, ongoing boardroom battles at major corporations, and the year's biggest stock market debut.

Key Discussion Points & Insights

1. Market Overview & Santa Claus Rally Prospects

• Main Point: The episode kicks off with hopes for a “Santa Claus rally,” where traders look for year-end upward momentum in the stock market, especially notable during holiday trading weeks.
• Insight:
  • Despite optimism, market performance was mixed:
    • Dow: Down 0.7%
    • S&P 500: Up 0.1%
    • Nasdaq: Up 0.5%
• Context: Recent positive movement followed encouraging inflation data, but “a cloudy economic picture and persistent AI-related jitters” weigh on investor sentiment.
• Quote:
  • “Wouldn’t be the holiday season for the stock market without traders hoping for positive momentum to spark a Santa Claus rally.” — Francesca Fontana [00:30]

2. Micron’s Rally: AI Demand Fuels a Chip Shortage

• Main Point: Micron, the memory chip manufacturer, delivered excellent quarterly results and a raised outlook, all driven by the AI-driven surge in memory chip demand.
• Key Insights:
  • AI development is driving a shortage of essential memory chips.
  • This has pushed up chip prices and boosted sales for companies like Micron.
• Market Reaction:
  • Micron’s stock surged 10.2% on Thursday, ending the week up 10.3%.
• Quote:
  • “There’s a shortage of memory chips thanks to the AI boom, and it doesn't look like it’s ending anytime soon… driving up price tags and giving sales a boost.” — Francesca Fontana [01:19]

3. Corporate Drama: Warner Brothers Discovery & Lululemon

• A. Warner Brothers Discovery

  • Saga: Warner is grappling with two major offers: a planned $72b deal with Netflix and a hostile $77.9b bid from Paramount Skydance.
  • Action: Warner rejected Paramount’s offer, emphasizing concerns over the “credibility of the illusory offer and its backing from the Ellison family.”
  • Market Reaction:
    • Warner shares fell 2.4% Wednesday and 7.4% for the week.
  • Quote:
    • “Warner raised concerns about the credibility of the illusory offer and its backing from the Ellison family.” — Francesca Fontana [02:15]

• B. Lululemon Athletica

  • Context: Ongoing drama involving activist investors and the yoga-wear brand’s founder, Chip Wilson, who claims the company “has lost its cool.”
  • Development: Activist investor Elliot acquired a $1b+ stake and is pushing for Jane Nielsen (former Ralph Lauren) as CEO.
  • Market Reaction:
    • Lululemon shares rose 3.5% Thursday, up 2.2% for the week.
  • Quote:
    • “According to its estranged founder, [Lululemon] has lost its cool.” — Francesca Fontana [02:55]
    • “Activist investor Elliot has built a stake of over $1 billion in the struggling retailer and wants former Ralph Lauren executive Jane Nielsen to be its new chief executive.” [03:11]

4. Mega IPO: Medline’s Soaring Debut

• Main Point: Medical supplies distributor Medline went public on Nasdaq and made the year's biggest splash.
• Key Insights:
  • Stock jumped 41% on debut, raising over $6 billion.
  • It’s the largest US IPO since Rivian in November 2021.
  • This positive momentum could encourage major forthcoming IPOs—SpaceX was specifically mentioned.
• Quote:
  • “It’s the largest U.S. initial public offering since Rivian’s IPO in November 2021, according to Renaissance Capital.” — Francesca Fontana [03:40]
  • “Now, this could bode well for future IPOs coming down the pike from large companies like Elon Musk's SpaceX. We'll have to wait and see.” [03:47]

Memorable Moments & Quotes

| Timestamp | Quote & Context | |-----------|--------------------------------------------------------------| | 00:30 | “Wouldn’t be the holiday season…without traders hoping for positive momentum to spark a Santa Claus rally.” (On market expectations) | | 01:19 | “There’s a shortage of memory chips thanks to the AI boom, and it doesn’t look like it’s ending anytime soon.” (On Micron and AI) | | 02:15 | “Warner raised concerns about the credibility of the illusory offer and its backing from the Ellison family.” (On high-stakes mergers) | | 02:55 | “Lululemon…the struggling yoga pants maker that, according to its estranged founder, has lost its cool.” (On corporate identity and upheaval) | | 03:40 | “It’s the largest U.S. initial public offering since Rivian’s IPO in November 2021…” (On Medline’s IPO milestones) |

Timestamps for Key Segments

• 00:18: Market overview and hopes for a Santa Claus rally
• 01:19: Micron and AI-driven chip demand
• 02:00: Warner Brothers Discovery’s boardroom battles
• 02:50: Lululemon and activist investor moves
• 03:40: Medline’s debut and the IPO outlook

Additional Resources

• More details on the week’s biggest market movers are available in Francesca Fontana’s The Score column in the WSJ Exchange section.

Summary:
This edition of “What’s News in Markets” captures a week defined by AI-fueled chip demand, public corporate power struggles, and a booming IPO—signaling crucial trends in technology, corporate governance, and capital markets as the year draws to a close.