Media Stocks Hit As NASDAQ Suffers Biggest One-Day Drop Since 2011

By | Thursday April 10, 2014 @ 1:45pm PDT

stock arrow downThe tech-heavy exchange fell 3.1% today to a two-month low as investors, fearful that the bull market for Internet and biotech companies has run its course, continued to shift their cash into more conservative investments. On NASDAQ’s worst day … Read More »

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Media Stocks Pulled Down As Investors Unload Tech Holdings

By | Friday April 4, 2014 @ 1:17pm PDT

Stock arrow downThe tech-heavy NASDAQ fell 2.6% today, apparently reflecting fears that many companies — after soaring in 2013 — will report disappointing info on Q1 sales. The concern has been building: Netflix, for example, is down 25.7% over … Read More »

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WWE Leads Q1 Media Stock Gainers While DreamWorks Animation Falls

By | Monday March 31, 2014 @ 2:22pm PDT

Market arrows up downThe markets closed the books today on Q1 trading, and it began with a shrug for media stocks. The Dow Jones U.S. Media Index fell 2.4% over the three-month period, behind the benchmark Standard & Poor’s 500, which was +1.3%. Sony was the top-performing Big Media company, with shares +10.6%. It was trailed by Disney (+4.8%), Viacom (-2.7%), CBS (-3.0%), Comcast (-3.7%), News Corp (-4.4%), Time Warner (-6.3%) and Fox (-9.1%). There’s a much wider gap between the best and worst performers among other media companies we track most closely. World Wrestling Entertainment led the pack, helped by its launch of WWE Network, a $9.99 a month live streaming video service. Its shares appreciated 74.2% — followed by Barnes & Noble (+39.8%), RealD (+30.8%), and Cinedigm (+26.7%). At the bottom we find DreamWorks Animation (-25.2%), National CineMedia (-24.9%), and Sinclair Broadcasting (-24.2%).

Here’s how individual companies fared: Read More »

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Media Stocks Slip As Investor Fears About China And Ukraine Grow

By | Thursday March 13, 2014 @ 1:52pm PDT

The industry couldn’t withstand the downdraft across the financial markets today as reports in China showed weaker-than-expected industrial growth and as Russian troops began military exercises near the border with Ukraine. Stock arrow downThe Dow Jones U.S. Media Index fell … Read More »

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Media Stocks Slammed As Markets Reel From Weak Economic Data

By | Monday February 3, 2014 @ 1:31pm PST

Stock arrow downDisappointing data about factory performance added to investor concerns about prospects for the economy as the Federal Reserve pulls back on its stimulus efforts. The Dow Jones U.S. Media Index fell 2.7% today — ahead of a … Read More »

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Media Stocks Buffeted By Investor Concerns About Emerging Markets

By | Friday January 24, 2014 @ 3:06pm PST

The Dow Jones U.S. Media Index fell nearly 2% today as Wall Street dealt with the biggest single-day stock selloff it has seen since June. The stock arrow downbenchmark Standard & Poor’s 500 fell 2.1% as investors bailed out of stocks … Read More »

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With Netflix In The Lead, Media Stocks Handily Beat Overall Market In 2013

By | Tuesday December 31, 2013 @ 2:44pm PST

Stock Arrow Up 1Shares in the streaming video company appreciated 297.6% during the latest 12 months, well ahead of everyone in the companies we track — including media  industry giants, where CBS (+67.5%) led the pack. But you shouldn’t hear many complaints. The Dow Jones U.S. Media Index rose 12.3% in Q4, and 47% for the entire year, as investors became increasingly comfortable about the prospects for information and entertainment companies in a period of strengthening ad sales, low interest rates, and prodigious stock repurchases and dividend payments. The sector was well ahead of the benchmark Standard & Poor’s 500, which was up 9.9% in Q4 and 29.6% for the year. Big Media companies will look back at the year fondly. After CBS, the top performers were Viacom (+65.6%), Sony (+54.4%), Disney (53.4%), Time Warner (+45.8%), Discovery (+42.4%), Comcast (+39.1%), and Fox (+37.9%).  But lots of other companies did much better. Industry winners after Netflix include Best Buy (+236.5%), Pandora (+189.8%), Sinclair Broadcasting (+183.1%), DreamWorks Animation (+114.2%), and Live Nation (+112.2%). The year’s underperformers include RealD (-23.8%), Barnes & Noble (-0.9%), Apple (+5.4%), and TiVo (+6.6%). Read More »

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Can Big Media Companies Continue To Prop Up Their Stocks With Buybacks?

By | Monday October 14, 2013 @ 10:17am PDT

Most Wall Street analysts, eager to sell stocks, pull their punches when faced with questions that might lead to uncomfortable conclusions. But Bernstein Research’s Todd Juenger and MoffettNathanson Research’s Michael Nathanson have proven their fearlessness over the years — which is why I was so pleased to see both out this morning with thoughtful reports that reach different conclusions about a key question: How much longer can the go-go period for media stocks last? Shares have been on a tear for the last three years largely because moguls stopped using cash to build empires choosing instead to slim down (as News Corp/Fox did, and Time Warner is doing, by unloading their publishing units and CBS is doing with its billboard ad business) and returning cash to shareholders. Stock buybacks in particular “have been enormous,” Nathanson says, with Viacom cutting the number of outstanding shares by 21% followed by Time Warner (-17%), Discovery (-16%), Scripps Networks (-12%), News Corp/Fox (-12%), CBS (-11%), and Disney (-6%). Read More »

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Media Stocks Join Market Rally On Hopes That A Federal Default Will Be Averted

By | Thursday October 10, 2013 @ 1:46pm PDT

Markets registered their best single-day gains this year as President Obama met with House Republicans this afternoon to see whether they can reach an agreement to raise the federal debt ceiling and avoid a default. The Dow … Read More »

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Q3 Media Stock Tally: Facebook Shares Win Big While RealD Falls

By | Monday September 30, 2013 @ 2:27pm PDT

This was the quarter when Facebook left behind memories of its troubled IPO last year: As it reassured investors that it has a strategy to sell ads on mobile platforms, its shares closed Q3 at $50.23 — a 101.9% gain since the end of June. That’s the biggest jump … Read More »

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Media Stocks Join Market Rally As Indexes Hit New Highs

By | Thursday August 1, 2013 @ 2:30pm PDT

Encouraging data about jobless claims, and the Federal Reserve’s signal that will continue its stimulus program by buying bonds, sent the markets to all-time highs today. The Standard & Poor’s 500 closed +1.3% to nearly 1,707 — the … Read More »

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Tremor Video Shares Fall 15% After IPO

By | Thursday June 27, 2013 @ 1:12pm PDT

Investors turned a cold shoulder to online video ad company Tremor Video in its first day in the market. Shares closed today at $8.50, down from the IPO price of $10. That was already less than it originally … Read More »

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Media Stocks Join Market Swoon After Fed Chief Says It Might Reduce Stimulus Effort

By | Thursday June 20, 2013 @ 2:34pm PDT

This was the market‘s worst day since 2011, with the Standard & Poor’s 500 -2.5% and the Dow Jones Industrial Average -2.3%. Traders became jittery after Federal Reserve Chief Ben Bernanke said that the economy might be … Read More »

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Media Stocks Recover As Upbeat Jobs Report Propels Market Rally

By | Friday June 7, 2013 @ 1:59pm PDT

The Labor Department’s estimate that 175,000 people joined U.S. payrolls last month had something for everybody: It was strong enough to show that the economy is improving — but not sufficiently encouraging to exacerbate fears that the Federal Reserve might curtail its stimulus efforts. The market responded with the Standard & Poor’s 500 rising 1.3% for the biggest two-day rally this year. And media stocks recovered from a downdraft earlier this week; the Dow Jones U.S. Media Index appreciated 1.9% today to end the week +1.3%. Sony led the Big Media pack, with shares +3.2% today. It was followed by Disney (+2.7%), Comcast (+2.3%), Viacom (+2.3%), Time Warner (+2.2%), and News Corp (+1.1%). CBS was the only decliner, -1.7%. Read More »

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Media Stocks Hit By Investor Fears That Economic Stimulus Efforts Will Cool

By | Wednesday June 5, 2013 @ 2:40pm PDT

Just about every major media company lost ground in the market today. Traders became concerned that the Federal Reserve Board might change course and buy fewer bonds — something it has been doing to stimulate the economy — … Read More »

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Media Stocks Continue To Be Buoyed As Market Hits Another All Time High

By | Friday March 8, 2013 @ 1:34pm PST

Wall Street remained in a cheery mood Friday as the Dow Jones Industrial Average closed at 14,395.76 — up just +0.5%, but still a new high. Investors were encouraged after the Labor Dept reported that the unemployment rate … Read More »

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Media Celebrate Stock Market’s Record High

By | Tuesday March 5, 2013 @ 1:33pm PST

The Dow Jones Industrial Average closed today at 14,253.77, topping the previous record high in 2007 — and other benchmarks aren’t far behind. Analysts say the rally reflects growing optimism about the economy, especially after the Institute … Read More »

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Comcast And Carmike Steal The Show In An Unusually Strong Year For Media Stocks

By | Tuesday January 1, 2013 @ 7:04pm PST

The competition was tough — most media stocks not only appreciated in 2012, they handily beat the benchmark Standard & Poor’s 500 which was up 13.4%. Comcast led the pack of Big Media conglomerates with shares +57.6%, followed by News Corp (+43.0%), CBS (+40.2%), Disney (+32.8%), Time Warner (+32.4%) and Viacom (+16.1%). Sony was the only member of this group to lose ground, falling 37.9% as it struggles to fix its global TV and electronics sales operations. Within the universe of other companies that we track most closely, the biggest winners were Carmike (+118.7%), Lionsgate (+97.1%), AOL (+96.1%),  Lin TV (+78.0%), and Sirius XM (+58.8%). The losers: Best Buy (-49.3%), Martha Stewart Living Omnimedia (-44.3%), Sony, Rovi (-37.2%), and Facebook (-30.0% since it went public in May.).

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How Much Longer Can The Bull Market For Big Media Stocks Last?

By | Friday October 19, 2012 @ 3:00pm PDT

Wall Street’s Big Media bulls have had a great run. Stocks for the group of companies that includes Disney, News Corp, Time Warner, CBS, Viacom, and Discovery have outpaced the overall market for more than three years. And just this year, the Dow Jones U.S. Media Index has appreciated 35% while the benchmark Standard & Poor’s 500 rose 15%. Yet I’ve been struck lately by the growing number of reasons to suspect that the joy ride is about to end. They started to crystallize for me today when I read Cowen and Co analyst Doug Creutz’s “State Of Big Media” report making the case to remain “moderately positive” about the sector. Like most of his analyses, it’s smart and identifies the important questions that the Street will want CEOs to address in the upcoming Q3 earnings season. But Creutz’s case for remaining optimistic is so meek that you’d think it was prepared by the guy who coached President Obama for his first debate with Mitt Romney.

Creutz starts by cautioning investors that media stocks have become expensive. The big companies that he covers trade for 14 times earnings, ahead of the S&P 500′s 13.3 times. That’s quite a change from last year when the stocks traded for 11.5 times their earnings, in line with the overall market. As a result, he says, “we think outperformance over the next 12 months is likely to be more modest than that enjoyed over the last few years.” On top of that, the analyst notes that his upbeat case assumes that the economy can “muddle through” the next year. He says that the “#1 risk to Big Media stocks, by a wide margin” is the possibility of a global downturn — which could be triggered if a European country defaults on its debt, or there’s no resolution in the U.S. to the rush off the so-called “fiscal cliff.” Read More »

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