Disney, Time Warner, 21st Century Fox Media Stocks Show Strength, Diversity

Amid recent stock volatility, diversified media stocks should continue the goals of investors going forward, according to one media analyst.

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.

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