Media Stocks See Sharp Gains Following Netflix Results

Many media stocks that had been heavily impacted since the beginning of the year witnessed sharply higher pricing on Wednesday following Tuesday's positive results for Netflix’s recent quarter.

Netflix media stocks rose 7.3% on Wednesday to $216.44 at the close of trading.

After-market trading on Tuesday gave Netflix a 10% bump at one point -- with much lower subscriber losses than analysts expected.

Roku, the distribution platform for apps and streaming services that sometimes closely follows the market moves of Netflix, witnessed a 7% rise to $96.08.

Big, traditional TV-movie companies -- especially those with some key streaming businesses -- also saw stock increases. Walt Disney was up 3.8% to $103.35, while Paramount Global added 3.8% to $26.01.

Media stocks have seen steeper declines over the last six months, partly due to expectations of a advertising slowdown, both for legacy and new digital media companies and the maturing of the streaming TV industry. Recent concerns over an impending recession have added to these issues.



Since the beginning of the year, the Dow Jones U.S. Broadcasting & Entertainment Index has been down 27% to 12,78.97. The Dow Jones U.S. Media Index lost a similar 28% to 868.92.

By comparison, the Dow Jones Industrials has been down only half that amount -- 12.3% to 31,874. The S&P 500 declined by a smaller amount -- 17% to 3,959.90. Only the Nasdaq dipped lower -- 24% to 11,897.65.

Digital media also benefited from Netflix's news -- particularly Snap, which spiked 9.6% to $15.51.

Meta Platforms added 4.2% to $183.09. while Amazon was 3.9% higher to $122.77.

AMC Networks grew 4.4% to $32.56, while Dish Networks grew 5.7%  to $19.25.

TV station groups also saw some lift: Nexstar Media Group had a 2.7% hike to $180.49, and Sinclair Broadcast Group was 2.1% higher to $22.58.

Among the lower-performing companies on the day, Fox Corp. increased 1.6% to $32.17, while Comcast Corp. added 1.2% to $41.82, Warner Bros. Discovery rose 1.3% to $14.37 and Google inched up 0.1% to $114.70.

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