Will the recent stock market recovery in the media and entertainment segment? Will Netflix’s recent rally lead to new highs?
The recent recovery of the US stock market has attracted the attention of experts towards the most sensitive sectors, about what appears to be the debated Christmas rally. One of the sectors most appreciated by investors is that of streaming services, with companies such as Netflix, Disney, etc., which have revolutionized the sector in recent years.
During 2022, these stocks suffered a notable negative impact, but in the first half of 2023 they followed the performance of their reference index, the S&P500, recording fairly pronounced increases, but which were not sufficient to make them reach their historic highs. For these and other reasons, mainly linked to the internal structure of companies, many wonder whether new highs can be reached as early as 2024.
Streaming: a very hot (and discussed) sector
The changes in consumption habits, which have occurred with high frequency since the outbreak of the pandemic, have made future decisions of families regarding streaming services more complex. Added to this are the resounding Hollywood strikes recorded in 2023, which, although they have been little discussed overseas, mark a crucial point in the history of the world of content, with the increasingly pronounced advent of artificial intelligence. The latest results shared by the streaming giants communicate a promising fundamental backdrop. This optimism is also well expressed by the stock market index which seeks to encompass the performance of the themed listed companies Media, the S&P 500 Media & Entertainment Industry, which in the last year, YTD, has recorded an appreciation of 56.64%.
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In summary, taking this index as a reference, it is easy to realize how much interest in this type of company has remained close to areas of strong growth, despite the economic turbulence of recent years.
Which companies to monitor in the streaming stock segment?
Among the companies in the entertainment segment, it is possible to find some that are particularly identifiable in the world of streaming: in the foreground, naturally, Netflix. The company is preparing to enter 2024 with excellent results, if weighted for the historical reference period, with an EPS of $3.73 thanks to 8.2 million subscribers, a figure that went well beyond the expectations of the latest quarterly reports. The streaming giant’s share price has exceeded three figures, and from the lows of 2022, it is recovering by approximately 186%, close to the numeraire and psychological threshold of $500. Next, but not least, we include Disney, another giant in the entertainment segment, which also has not recorded a significant recovery like that of Netflix and is currently close to the lows of recent years, below $100. To take into consideration, there is also Amazon, with the Amazon Prime service, and Google, with YouTube Premium.
- Netflix weekly graph
- Source: TeleTrader
Original article published on Money.it Italy 2023-12-13 08:11:00. Original title: Azioni società di streaming USA sotto i riflettori. Presto nuovi rialzi?
