5 Best News and Digital Media Stocks To Buy

In this article, we discuss 5 best news and digital media stocks to buy. If you want to read our discussion on the digital media industry, head over to 12 Best News and Digital Media Stocks To Buy. 

5. The New York Times Company (NYSE:NYT)

Number of Hedge Fund Holders: 39

The New York Times Company (NYSE:NYT) is involved in creating, collecting, and distributing news and information globally. Operating through two segments, The New York Times Group and The Athletic, the company provides The New York Times content through multiple platforms, including mobile applications, websites, and printed newspapers. The New York Times Company (NYSE:NYT) is one of the best news and digital media stocks to watch. 

On February 7, The New York Times Company (NYSE:NYT) declared a $0.13 per share quarterly dividend, an 18.2% increase from its prior dividend of $0.11. The dividend is payable on April 18, to shareholders on record as of April 2. 

According to Insider Monkey’s fourth quarter database, 39 hedge funds were bullish on The New York Times Company (NYSE:NYT), compared to 33 funds in the last quarter. Thomas Steyer’s Farallon Capital is the largest stakeholder of the company, with 9.4 million shares worth $464.2 million. 

4. Paramount Global (NASDAQ:PARA)

Number of Hedge Fund Holders: 43

Paramount Global (NASDAQ:PARA) is a global media and entertainment company with operations worldwide. The company operates through three segments – TV Media, Direct-to-Consumer, and Filmed Entertainment. It is one of the best entertainment stocks to monitor. On February 22, Paramount Global (NASDAQ:PARA) declared a quarterly dividend of $0.05 per share, in line with previous. The dividend is payable on April 1, to shareholders on record as of March 15. 

According to Insider Monkey’s fourth quarter database, 43 hedge funds were long Paramount Global (NASDAQ:PARA), compared to 33 funds in the last quarter. Warren Buffett’s Berkshire Hathaway is the leading stakeholder of the company, with 63.3 million shares worth $936.5 million. 

3. Warner Bros. Discovery, Inc. (NASDAQ:WBD)

Number of Hedge Fund Holders: 56

Warner Bros. Discovery, Inc. (NASDAQ:WBD) is a global media and entertainment company with three main segments: Studios, Network, and Direct-to-Consumer. Warner Bros. Discovery, Inc. (NASDAQ:WBD) is one of the top entertainment stocks to invest in. However, the company’s Q4 GAAP EPS of -$0.16 and revenue of $10.28 billion fell short of Wall Street estimates by $0.10 and $140 million, respectively. At the end of Q4, Global Direct-to-Consumer (DTC) subscribers reached 97.7 million, incorporating 1.3 million subscribers from the acquisition of BluTV. 

According to Insider Monkey’s fourth quarter database, 56 hedge funds held stakes in Warner Bros. Discovery, Inc. (NASDAQ:WBD), compared to 63 funds in the last quarter. Harris Associates is the largest stakeholder of the company, with 79.5 million shares worth $904.7 million. 

Longleaf Partners Fund stated the following regarding Warner Bros. Discovery, Inc. (NASDAQ:WBD) in its fourth quarter 2023 investor letter:

“The rules have improved how we analyze existing holdings and influenced the price at which we will buy a new holding and/or trim or add to an existing one. This has resulted in a higher level of resizing positions in the portfolio and exiting some long-term holdings this year. A good example in the portfolio today is Warner Bros. Discovery, Inc. (NASDAQ:WBD), a company that we bought too early but that remains a holding in the portfolio. Our average price for the initial WBD investment in 2021 was $26.48, or a P/V ratio in the mid-60s%. However, P/EV on the initial report was 79%. Under the new rules, we would not pay that price for the company today. We most likely would have waited for a mid-60s% P/EV, which would have equated to a $mid-teens entry price. In this case, we would have missed a too-large initial downturn in the stock price. The overweight rule dictated that we trimmed the position after the price ran up in the first half of 2023, which benefitted overall performance as the stock price subsequently fell again. However, even with the new rule lens, we remain confident in our case for the business and management’s ability to deliver going forward.”

2. The Walt Disney Company (NYSE:DIS)

Number of Hedge Fund Holders: 89

The Walt Disney Company (NYSE:DIS), a global entertainment company, operates through three segments – Entertainment, Sports, and Experiences. It produces and distributes film and television content under various brands, including ABC, Disney, Fox, National Geographic, and Star. The company also offers direct-to-consumer streaming services such as Disney+, Hulu, and Star+, as well as sports-related entertainment through ESPN. The Walt Disney Company (NYSE:DIS) is one of the best entertainment stocks to invest in. 

According to Insider Monkey’s fourth quarter database, 89 hedge funds were bullish on The Walt Disney Company (NYSE:DIS), same as the prior quarter. Nelson Peltz’s Trian Partners is the largest stakeholder of the company, with 32.3 million shares worth $2.9 billion. 

Madison Sustainable Equity Fund made the following comment about The Walt Disney Company (NYSE:DIS) in its Q3 2023 investor letter:

“During the quarter, we sold our positions in Bristol-Myers Squibb and The Walt Disney Company (NYSE:DIS).  The Walt Disney Company is facing a difficult and uncertain transition in its core media business assets including the ESPN business and other linear media assets. These media assets are cash generative but face secular decline as consumers are cutting their expensive cable subscriptions and moving to alternative streaming options. This has resulted in a decline in operating profits for the media division. The media business has long-term fixed costs related to its sports broadcasting agreement with multiple sports leagues which will further pressure profits during this transition.”

1. Netflix, Inc. (NASDAQ:NFLX)

Number of Hedge Fund Holders: 89

Ranking 1st on our list of the best entertainment stocks is Netflix, Inc. (NASDAQ:NFLX). On January 23, Netflix, Inc. (NASDAQ:NFLX) reported a Q4 GAAP EPS of $2.11, missing estimates by $0.11. The revenue increased 12.5% year-over-year to $8.83 billion, outperforming Wall Street expectations by $120 million. Paid subscriptions for global streaming reached 13.12 million, marking a 12.8% year-over-year increase and totaling 260.28 million.

According to Insider Monkey’s fourth quarter database, 89 hedge funds were bullish on Netflix, Inc. (NASDAQ:NFLX), compared to 102 funds in the last quarter. Ken Fisher’s Fisher Asset Management is a prominent stakeholder of the company, with 4.12 million shares worth $2 billion. 

RiverPark Large Growth Fund stated the following regarding Netflix, Inc. (NASDAQ:NFLX) in its fourth quarter 2023 investor letter:

“Netflix, Inc. (NASDAQ:NFLX): NFLX was a top contributor in the quarter following strong third quarter earnings and fourth quarter guidance driven by better-than-expected subscriber adds (+8.8 million versus estimates of +6.1 million). The company’s subscriber growth continued to accelerate following the company’s crack down on password sharing, and the rollout of the advertising supported subscriber offering known as the Ad Tier. ARPU came in below expectations, but management announced price increases in the US, UK and France effective immediately. NFLX guided full year 2023 operating margins to the “high end” of the prior guidance, guided 2024 operating margins to a range of 22-23%, ahead of investor expectations of 22%, and raised 2023 free cash flow guidance from $5 billion to $6.5 billion.

The recent re-acceleration of subscriber growth, plus price increases on premium memberships and a stabilization of content investments, should position the company for low double digit annual revenue growth over the next few years while driving improved operating margin to more than 25% (revenue grew 8% for 3Q23 and operating margin was 22.4%, up from 13% in 2019). We also believe that the stabilization of content spend should allow the company to continue to scale its FCF.”

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily enewsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also check out Michael Burry’s 2024 Portfolio: 12 New Stock Picks and 13 Best Environmental Dividend Stocks To Invest In According To Analysts.