In this article, we discuss the 5 best media stocks to buy now. If you want to read our detailed analysis of the media industry, go directly to see the 10 Best Media Stocks to Buy Now.
5. Comcast Corporation (NASDAQ:CMCSA)
Number of Hedge Fund Holders: 84
Comcast Corporation (NASDAQ:CMCSA) is an American telecommunication and media company that operates the largest cable company in the U.S. and owns one of the biggest mass media companies, NBCUniversal. Comcast Corporation (NASDAQ:CMCSA) gained 6% in the past year.
Comcast Corporation (NASDAQ:CMCSA) has recently announced a new venture called Project UP to enhance digital equity. The project will combine the programs from Comcast, NBCUniversal, and Sky, and aims to reach 50 million people. Due to these advances, Comcast Corporation (NASDAQ:CMCSA) remains one of the best media stocks to buy now. This September, Pivotal Research raised its price target on Comcast Corporation (NASDAQ:CMCSA) to $75, with a Buy rating on the shares.
Of the 873 elite funds tracked by Insider Monkey, 84 hedge funds have positions in Comcast Corporation (NASDAQ:CMCSA) in Q2, compared with 88 in the previous quarter. The total value of these stakes is over $9.3 billion.
4. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 112
The Walt Disney Company (NYSE:DIS) is one of the world’s leading providers of entertainment and media. The company bought Marvel Entertainment in 2009, in a deal worth $4 billion, which helped the company launch new shows on Disney+ based on Marvel characters. Along with this, The Walt Disney Company (NYSE:DIS) also operates other online streaming services such as Hulu and ESPN+.
At the end of Q2, 112 hedge funds tracked by Insider Monkey reported owning stakes in The Walt Disney Company (NYSE:DIS), down from 134 in the previous quarter. The total value of these stakes is over $10.8 billion.
Harding Loevner mentioned The Walt Disney Company (NYSE:DIS) in its Q4 2020 investor letter. Here is what the firm has to say:
“One of the original constituents of the Nifty Fifty holds a place in our portfolio today. When we bought Disney three years ago, we wrote that “we view Disney theme parks in the US, Europe, and China as resistant to online substitution.” We did not reckon on a pandemic, which closed all of them, and sent all of usto our couches. Disney, however, wasready for us, brilliantly illustrating the importance of management foresight and change management. Or, as Louis Pasteur said, “chance favors the prepared mind.
A century after its founding in 1923, Disney is in the middle of a bold shift from its legacy media networks & entertainment model—with cable TV, theme parks, and theater films dominating its earnings—to a direct-to-consumer streaming media model. The keys to Disney’s transition: matchless storytelling, coupled with financial strength. The company reliably creates content that people all over the world are eager to consume. It also hastened spending on original content to attract subscribers to its new streaming platform. These factors have allowed Disney to weather the pandemic having expanded its direct engagement with customers. Such connections yield a rich harvest of insights used to customize offerings on a mass scale, reinforcing that engagement in a virtuous circle and thereby raising the lifetime value of each customer. Subscribers to Disney+ reached 86.8 million one year after launch, compared to the 60 – 90 million management projected to reach in 2024. To be sure, Netflix, Apple, and Amazon remain formidable competitors in new-era streaming entertainment (mind what we said about everyone standing up at once), but there’s fight left in this old dog.”
3. Netflix, Inc. (NASDAQ:NFLX)
Number of Hedge Fund Holders: 113
Recently, Cowen appreciated the local production operations of Netflix, Inc. (NASDAQ:NFLX), combined with its global content distribution. The firm lifted its price target on Netflix, Inc. (NASDAQ:NFLX) to $750, with an Outperform rating on the shares.
At the end of Q2, 113 hedge funds tracked by Insider Monkey reported having stakes in Netflix, Inc. (NASDAQ:NFLX), up from 110 in the previous quarter. The total value of these stakes is over $13.2 billion.
Since the beginning of the year, Netflix, Inc. (NASDAQ:NFLX) delivered a 30% return to shareholders, while the stock gained 40% in the past year. In Q3, the company reported revenue of $7.4 billion, presenting a 16.1% growth from the prior-year quarter.
Ensemble Capital mentioned Netflix, Inc. (NASDAQ:NFLX) in its Q3 2021 investor letter. Here is what the firm has to say:
“Netflix stock had a disappointing first half of 2021 performance, treading water while the S&P 500 rallied, after a very strong 67% return in 2020. It benefited from the global pandemic in 2020, signing on 36.6 million new subscribers vs the typical 25 million or so it typically does. Total subscribers exceeded 200 million, up 22% over the previous year. However, in the first half of 2021, new subscriber additions slowed substantially, totaling only 5.5 million due to slower new content additions impacted by production delays, a resumption of outdoor activity as people everywhere adjusted to living with COVID, and the impact of a “pull-forward effect” on subscriber growth in last year’s very strong results. The third quarter saw new content velocity start to pick up, which is usually what drives new subscribers to the service, with expectations of an even stronger content slate going into the final quarter of the year, causing the stock to increase 15% in the quarter.”
2. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 138
Apple Inc. (NASDAQ:AAPL) released its online video streaming services, Apple TV+ in 2019 and has already reached over 40 million subscribers in 2021.
At the end of Q2, 138 hedge funds tracked by Insider Monkey were bullish on Apple Inc. (NASDAQ:AAPL), valued at $145.5 billion. In the previous quarter, 127 hedge funds had positions in the company, highlighting a positive hedge fund sentiment.
Recently, DA Davidson lifted its price target on Apple Inc. (NASDAQ:AAPL) to $175, with a Buy rating on the shares, highlighting the company’s strong business during the pandemic as the work from home policy spiked the laptop sales. In the past year, Apple Inc. (NASDAQ:AAPL) gained 33%.
ClearBridge Investments mentioned Apple Inc. (NASDAQ:AAPL) in its first-quarter 2021 investor letter. Here is what the firm has to say:
“As we actively manage holdings and position sizes, we look to regularly recycle capital into more compelling opportunities. Maintaining our valuation discipline, we sharply reduced our position in Apple, whose shares more than doubled following our initial purchase in mid-2019 with an earnings multiple rising from the low-to-mid teens to nearly 30x.”
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 271
Amazon.com, Inc. (NASDAQ:AMZN), an American multinational e-commerce and technology company, is quickly expanding its digital media streaming services through its major channel, Amazon Prime, which has gained over 153 million subscribers in the U.S.
Of the 873 elite hedge funds tracked by Insider Monkey, 271 hedge funds reported owning stakes in Amazon.com, Inc. (NASDAQ:AMZN), up from 243 in the previous quarter. The total value of these stakes is over $60.4 billion.
Recently, Baird lifted its price target on Amazon.com, Inc. (NASDAQ:AMZN) to $4,000, with an Outperform rating on the shares, appreciating the company’s technology infrastructure.
Polen Capital mentioned Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2021 investor letter. Here is what the firm has to say:
“Amazon has also lagged as its revenue growth is slowing on the very difficult comparisons from last year when this behemoth was growing revenue by over 40%. We still expect exceptional long-term growth and significant margin expansion as the fastest growing (and now large) segments of Amazon are also generating the highest margins.”
You can also take a look at 10 Biggest Companies Behind Upcoming Movies and TV Shows and 10 Best Telecom Stocks to Buy Right Now
