MoffettNathanson Research says stocks such as Walt Disney, 21st Century Fox, and Time Warner should be considered in the long term.
A new report from MoffettNathanson says: “All have a combination of low non-sports advertising exposure, safeguarded affiliate fee drivers, must-have content, and a diversified revenue base.”
For example, Time Warner, Disney, and Fox have the lowest exposure to advertising among major media companies. Time Warner gets 14% of its revenue from advertising; Disney is at 13%, and Fox is at 18%.
Since the lows on Tuesday, the Dow Jones Industrial index at 15,666.51 rose 6% by the close on Thursday. Only Walt Disney has outperformed the overall market since that time -- up 7% to $102.17. (Disney is in Dow Jones 30 Industrial Index).
Next are AMC and CBS -- both up 5% to $72.79 and $45.26, respectively. Time Warner, Fox, and Discovery are up 4% each -- to $69.69, $26.91 and $52.67, respectively. Lower-performing media stocks during the period are Scripps Networks Interactive, up 3% to $52.67 and Viacom adding on 2% to $39.25.
Weeks before the overall fall of the stock market, lower affiliate revenue and subscribers concerns at Walt Disney -- in particular ESPN -- kicked off a wave of stock market selling among a broad range of media companies.