Moelis (MC) Stock Trades Up, Here Is Why

What Happened?

Shares of investment banking firm Moelis & Company (NYSE:MC) jumped 3.3% in the morning session after the company was named as the financial advisor to Netflix in its massive $82.7 billion acquisition of Warner Bros. The investment bank advised Netflix on the cash and stock deal to acquire Warner Bros., which included its film and television studios. Securing a role as a financial advisor on such a large-scale transaction represented a significant win for Moelis. These advisory roles typically came with substantial fees, which directly contributed to the firm's revenue. The high-profile nature of the deal also enhanced the company's reputation in the mergers and acquisitions space.

After the initial pop the shares cooled down to $69.06, up 3.9% from previous close.

Is now the time to buy Moelis? Access our full analysis report here.

What Is The Market Telling Us

Moelis’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The previous big move we wrote about was 14 days ago when the stock gained 3.4% on the news that investors grew more optimistic about a potential Federal Reserve interest rate cut in December. 

The positive sentiment was fueled by comments from New York Fed President John Williams, a voting member of the rate-setting Federal Open Market Committee, who stated the central bank could cut rates "in the near term" without jeopardizing its inflation targets. Following his remarks, market expectations for a rate cut in December shifted significantly. According to the CME FedWatch Tool, the probability of a December rate reduction surged from a 37% chance earlier in the day to 70%. While lower rates can compress bank profit margins, investors often view them as a catalyst for broader economic activity, potentially boosting loan demand and reducing the risk of defaults.

Moelis is down 6.9% since the beginning of the year, and at $69.06 per share, it is trading 15% below its 52-week high of $81.20 from February 2025. Investors who bought $1,000 worth of Moelis’s shares 5 years ago would now be looking at an investment worth $1,612.

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