In this article, we will be taking a look at the 5 best media stocks to buy now. To read our detailed analysis of these stocks, you can go directly to see the 12 Best Media Stocks To Buy Now.
5. Paramount Global Class B (NASDAQ:PARA)
Number of Hedge Fund Holders: 40
Paramount Global Class B (NASDAQ:PARA) is a media and entertainment company. It is based in New York.
A Buy rating was reiterated on Paramount Global Class B (NASDAQ:PARA) on November 4 by analyst Bryan Kraft at Deutsche Bank.
In the third quarter, Paramount Global Class B (NASDAQ:PARA) saw revenues rise by 5% year-over-year to $6.9 billion. The company’s total streaming revenue was $1.2 billion, showing an increase of 38% year-over-year as well.
There were 40 funds long Paramount Global Class B (NASDAQ:PARA) in the third quarter. Their total stake value was $2.2 billion.
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4. InterActiveCorp (NASDAQ:IAC)
Number of Hedge Fund Holders: 45
InterActiveCorp (NASDAQ:IAC) is a media and internet company operating worldwide. It published original and engaging digital content in the form of articles, illustrations, videos, and more.
Brian Fitzgerald at Wells Fargo reiterated an Overweight rating on InterActiveCorp (NASDAQ:IAC) on November 14.
As of this October, InterActiveCorp (NASDAQ:IAC) had $1.79 billion in cash assets, and almost $2 billion in MGM stock. This covers the company’s debt load twice over. Its free cash flow annualizes at $148 million. The company is expected to benefit from steady growth and no pressure from its debt since the majority of the debt matures in 2028.
Out of 920 hedge funds tracked in the third quarter, 45 funds were long InterActiveCorp (NASDAQ:IAC). Their total stake value was $1.1 billion.
Alphyn Capital Management, an investment management firm, mentioned InterActiveCorp (NASDAQ:IAC) in its third-quarter 2022 investor letter. Here’s what the firm said:
“Angi, IAC Inc. (NASDAQ:IAC)’s home services business, has had an especially tough time. The company has not cracked the code on its fixed-price service and still has difficulty matching consumer demand to service professionals. Pricing missteps with its recently acquired roofing business have not helped matters. We also recently learned that Oisin Hanrahan is stepping down as CEO to be replaced by Joey Levin, IAC’s CEO. It is unclear how Mr. Levin plans to salvage the situation, for example, by giving his full personal attention to a turnaround or by preparing the company for a sale (I am speculating). It will be an important test of Mr. Levin’s pragmatic leadership and operating skills.
IAC has had better results with its investment in MGM, whose shares have doubled since IAC first invested. With its brand and substantial casino operations, MGM is well-placed to compete in the rapidly growing online betting market. IAC believes they have the talent to help with this and consequently bought more shares.
DotDash’s acquisition of Meredith’s print business has been mixed so far. On the one hand, DotDash, as promised, has successfully transferred most of Meredith’s content online and improved advertising performance through better targeting, website speed, and customer experience. On the other hand, the turn in the macro environment impacted ad spending, and the combined company will not meet its initial $450m EBITDA target. I expect that macro factors, though unpleasant, will be temporary.
At the current share price, MGM, DotDash, and approximately $1bn in cash make up IAC’s entire value, while Angi and IAC’s portfolio of earlier-stage companies all provide upside optionality.”
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3. Warner Bros. Discovery Inc. Series A (NASDAQ:WBD)
Number of Hedge Fund Holders: 61
Warner Bros. Discovery Inc. Series A (NASDAQ:WBD) is a media company providing content across various distribution platforms in about 50 languages. The company is based in New York.
On November 14, Spin-Off Research placed a Hold rating on Warner Bros. Discovery Inc. Series A (NASDAQ:WBD) shares.
In the third quarter, Warner Bros. Discovery Inc. Series A (NASDAQ:WBD) added 2.8 million subscribers to its existing subscriptions. The company is also paying back its debt rapidly, expecting to be within its credit rating category of mid-2024 or even earlier. It also forecasts for 2023 adjusted EBITDA to stand at about $12 billion.
In total, 61 hedge funds held stakes in Warner Bros. Discovery Inc. Series A (NASDAQ:WBD) in the third quarter, with a total stake value of $1.6 billion.
Greenlight Capital, an investment management company, mentioned Warner Bros. Discovery Inc. Series A (NASDAQ:WBD) in its third-quarter 2022 investor letter. Here’s what the firm said:
“Finally, we sold unsuccessful investments in PLBY and Warner Bros. Discovery, Inc. (NASDAQ:WBD). We thought both companies were going through substantial corporate transformations. PLBY failed to execute on its strategy and we exited with a 50% loss on our investment. We sold WBD as it faces a more challenging path to executing its integration plan than we expected. It also has a sizable amount of debt. We are trying to avoid levered equities in the current economic environment. We lost approximately 40% on WBD in half a year. Both positions were small.
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2. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 112
The Walt Disney Company (NYSE:DIS) is a global entertainment company operating through its Disney Media and Entertainment Distribution, and Disney Parks, Experiences, and Products segments. The company is based in Burbank, California.
Ivan Feinseth at Tigress Financial holds a Buy rating on The Walt Disney Company (NYSE:DIS) shares as of November 22.
The Walt Disney Company (NYSE:DIS) beat subscription estimates in the fourth quarter, adding 12.1 million subscribers in the quarter. The company’s parks segment grew by 36% year-over-year this quarter as well. It also reported a total of 164.2 million global uses in the fourth quarter, up from 152.1 million in the third quarter.
Our hedge fund data shows 112 hedge funds long The Walt Disney Company (NYSE:DIS) in the third quarter. Their total stake value was $3.9 billion.
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1. Netflix, Inc. (NASDAQ:NFLX)
Number of Hedge Fund Holders: 115
Netflix, Inc. (NASDAQ:NFLX) offers TV series, documentaries, feature films, and mobile games on its application and website. The company is based in Los Gatos, California. On November 15, Jessica Reif Ehrlich at Bank of America reinstated coverage of Netflix, Inc. (NASDAQ:NFLX) with a Buy rating.
For this year, EPS from Netflix, Inc. (NASDAQ:NFLX) is projected to stand at $10.37 while for the next year, the expectation is $10.67. In 2024, the company’s projected earnings are expected to rise to $13.57.
Netflix, Inc. (NASDAQ:NFLX) was found among the 13F holdings of 115 hedge funds in the third quarter, with a total stake value of $6.7 billion.
Harding Loevner, an asset management company, mentioned Netflix, Inc. (NASDAQ:NFLX) in its third-quarter 2022 investor letter. Here’s what the firm said:
“Netflix, Inc. (NASDAQ:NFLX) mustered a modest recovery as the market Allocation Effect: 0.3 mulled the potential of its new lower-priced ad-supported subscription model to drive revenue growth and reduce its dependency on continued heavy investment in content to attract and retain viewers.”
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