In this article, we discuss the 5 media and internet stocks to watch after latest earnings. If you want to see some more stocks from the same category, go directly to 10 Media and Internet Stocks to Watch After Latest Earnings.
5. Fox Corporation (NASDAQ:FOXA)
Number of Hedge Fund Holders: 38
Shares of Fox Corporation (NASDAQ:FOXA) closed higher on Wednesday, August 10, 2022, despite missing profit and sales expectations for its fiscal fourth quarter. The mass media company reported adjusted earnings of 74 cents per share, up from 65 cents per share in the year-ago period.
In addition, Fox Corporation (NASDAQ:FOXA) posted revenue of $3.03 billion, up 5 percent on a year-over-year basis. The results were slightly below the consensus of 76 cents per share for earnings and $3.05 billion for revenue.
Fox Corporation (NASDAQ:FOXA) also released its segment-wise sales results. Its affiliate revenue inched up 2 percent to $1.73 billion, advertising revenue rose 7 percent to $1.06 billion and other revenues advanced 4 percent to $252 million in the quarter.
4. Roblox Corporation (NYSE:RBLX)
Number of Hedge Fund Holders: 40
Roblox Corporation (NYSE:RBLX) announced weak financial results for the second quarter. Its shares initially fell nearly 12 percent on Wednesday morning. However, the stock managed to recover its lost value by the end of the trading session on August 10.
The video game developer reported a loss of 30 cents per share, wider than analysts’ average estimate for a loss of 21 cents per share. Total bookings for the quarter decreased 4 percent versus last year to $639.9 million, while analysts were expecting Roblox Corporation (NYSE:RBLX) to report bookings of $644.4 million.
Among other updates, Roblox Corporation (NYSE:RBLX) said that average daily active users rose 21 percent to 52.2 million in the quarter, while hours engaged jumped 16 percent to 11.3 billion.
3. IAC/InterActiveCorp (NASDAQ:IAC)
Number of Hedge Fund Holders: 48
Shares of IAC/InterActiveCorp (NASDAQ:IAC) fell nearly six percent on Wednesday, August 10, 2022, after the media and Internet company swung to a loss in the second quarter.
IAC/InterActiveCorp (NASDAQ:IAC) reported a loss of $10.02 per share, compared to earnings of $2.02 per share in the same period of 2021. Revenue for the quarter jumped 64 percent versus last year to $1.36 billion but missed the consensus of $1.38 billion.
Earlier this year, IAC/InterActiveCorp (NASDAQ:IAC) also appeared in the first-quarter 2022 investor letter of Memphis-based Longleaf Partners Fund. Here’s what the fund said:
“IAC – The conglomerate discount on this digital holding company grew wider in the quarter amidst a period of broad uncertainty and continued technology stock declines. Unlike most of its tech peers, IAC began the year already uniquely discounted and today trades at less than half of our appraisal value and less than 10x estimated free FCF per share power. Underlying holding Angi (previously Angie’s List) reported a disappointing quarter. Angi represents only 25% of value but swings the market perception and stock price since it is also publicly traded. The market is not yet giving credit to the Dotdash Meredith deal creating a digital publishing leader, given the lack of near-term reporting clarity since the deal just closed and 2022 is a transition year. Additionally, IAC’s underlying holdings in carsharing company Turo and casino and online gaming company MGM remain not properly recognized by the market. CEO Joey Levin and Chairman Barry Diller have a history of creating value-accretive catalysts to close the price to value gap.”
2. Take-Two Interactive Software, Inc. (NASDAQ:TTWO)
Number of Hedge Fund Holders: 58
Shares of Take-Two Interactive Software, Inc. (NASDAQ:TTWO) fell nearly four percent on Tuesday, August 9, 2022. The drop came after the video game holding company posted disappointing results for its fiscal first quarter.
Take-Two Interactive Software, Inc. (NASDAQ:TTWO) earned 71 cents per share on an adjusted basis, below the consensus of 87 cents per share. Net booking for the quarter jumped 41 percent on a year-over-year basis to $1 billion but missed the expectations of $1.11 billion.
Looking forward, Take-Two Interactive Software, Inc. (NASDAQ:TTWO) expects booking in the range of $5.8 – $5.9 billion for its fiscal year 2023. That’s below analysts’ average estimate of $6.22 billion.
Commenting on the quarter, CEO Strauss Zelnick said in a statement:
“We remain exceedingly optimistic about the long-term growth potential for the mobile industry, as well as our ability to create greater shareholder value as a combined entity with Zynga. Our creative teams are actively discussing potential new projects and we remain committed to delivering over $500 million of annual Net Bookings opportunities over time.”
1. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 113
Shares of The Walt Disney Company (NYSE:DIS) jumped nearly nine percent in the pre-market trading session on Thursday, August 11, 2022. The surge came after the entertainment giant crushed profit and sales expectations for its fiscal third quarter.
The Walt Disney Company (NYSE:DIS) reported adjusted earnings of $1.09 per share, up from 80 cents per share in the same period of 2021. Analysts were looking for earnings of $1 per share.
Revenue for the quarter increased 26 percent versus last year to $21.5 billion, while analysts expected The Walt Disney Company (NYSE:DIS) to generate revenue of $20.5 billion. If we look at the performance of its flagship units, revenue from the media and entertainment segment rose 11 percent to $14.1 billion, while revenue from the parks, experiences and products segment skyrocketed 70 percent to $7.4 billion in the quarter.
Among other updates, The Walt Disney Company (NYSE:DIS) reported that Disney+ subscriptions increased to 152.1 million in the quarter, beating analysts’ average estimate of 147 million.
You can also take a peek at 10 Cheap ETFs to Invest In For Beginners and Jim Cramer Recommends These 10 Stocks For Recession.
