More From Shirley Pelts
What Are the Valuation Metrics for AT&T?
AT&T was trading at a current year’s PE multiple of ~12.8x on October 27, 2016. This figure is higher than Verizon Communications’ (VZ) comparable PE multiple of ~12.4x.
How Did the US Election Results Affect Media Stocks?
In this series, we’ll look at what Trump’s win means for the media sector. We’ll also look at how the possibility of a change in net neutrality regulations could affect media companies.
Does Comcast Expect Capex to Rise for Comcast Cable?
Comcast (CMCSA) expects capex as a percentage of revenues to continue to be flat at 15% for Comcast Cable in 2016.
Why Is ESPN Not Winning Lately?
ESPN had 381 million subscribers at the end of fiscal 2013 and 364 million at the end of fiscal 2014, a loss of 4.4% in one year.
What’s the Outlook for Time Warner’s Advertising Business?
At the start of 2016, Time Warner said it intended to reduce ad loads on Turner’s TNT channel. It also intends to reduce ads on TNT’s three new dramas set to premiere this year.
Did the Rio Olympics Broadcast Work Out Well for Comcast?
Despite lower viewership, Comcast has already reached the milestone of $1.2 billion in advertising sales for the Rio Olympics.
What Is Comcast’s Opinion about 5G?
In the telecom world, 5G (fifth-generation) is generating a lot of hype, as it could provide 10x–100x faster wireless speeds than 4G.
Why Does Comcast Expect Programming Costs to Rise in Fiscal 2016?
On March 8, 2016, the Wall Street Journal reported that Comcast and the YES Network were locked in a dispute regarding the carriage fee for the YES Network.
Liberty Interactive Acquires Zulily: What It Means for Investors
On August 17, Liberty Interactive announced its acquisition of Zulily for $2.4 billion. It will purchase all of Zulily’s outstanding shares for $18.75 per share.
FOXA’s Views on Streaming Platforms: Advertising Opportunity?
Due to the coverage of the US presidential elections this year, 21st Century Fox (FOXA) expects substantial advertising revenue from Fox News.
Why CBS Is Focusing on Original Progamming
Media companies have started focusing on producing original programming. CBS (CBS) is also increasingly concentrating on original programming.
Will Dish’s Sling TV Remain Successful?
As Millennials increasingly move to OTT (over-the-top) services, pay-TV companies like Dish Network (DISH) are also focusing on OTT services.
Why Time Warner Intends to Pull Its HBO Programming from Amazon
Time Warner announced at its fiscal 1Q17 earnings call that it most likely won’t extend its agreement with Amazon beyond 2018.
Trading at a Discount, Netflix Has Mixed Recommendations
Of the 44 analysts covering Netflix, 23 have given it a “buy” recommendation, seven have given it a “sell” recommendation, and 14 have given it a “hold” recommendation.
What Could a Net Neutrality Rollback Mean for Netflix?
The net neutrality principle is a subject of ongoing debate. Net neutrality rules say that all Internet traffic should be treated equally.
A Look at Time Warner’s Key Metrics
In fiscal 1Q16, Time Warner bought back $700 million worth of shares. Including dividends, it has returned around $1.3 billion to its shareholders year-to-date.
Why Netflix Is Stopping Short of an All-Time High
Netflix (NFLX) is expected to announce its 1Q17 results on April 17, 2017. In its 4Q16 results, Netflix had total streaming revenues of $2.4 billion, up 41% year-over-year.
What Is Dish Network’s Wireless Spectrum Strategy ?
Dish Network (DISH) has filed an application with the FCC to participate as a potential spectrum bidder.
Why Netflix Is Streaming Low-Quality Video on AT&T and Verizon
Netflix has been streaming low-quality videos for subscribers on AT&T and Verizon Communications’ (VZ) wireless networks. Here’s why.
Dish Network: Recent Returns and Stock Trends
On October 28, 2016, Dish Network’s (DISH) stock was trading at $57.38. The stock was trading 0.7% above its 20-day moving average of $57.
What’s Really Driving Growth for 21st Century Fox’s Television Segment?
FOXA believes that its “ability to create, own and monetize hit content” for its television segment will drive long-term value for its shareholders.
What Factors Are Driving Time Warner’s Growth
Time Warner’s (TWX) Turner business division had revenues of $3 billion in fiscal 2Q16, an increase of 6% year-over-year.
NFLX’s International Membership Additions Exceeded Expectations
On January 19, 2016, Netflix (NFLX) announced its 4Q15 results. Netflix recorded international streaming revenues of $566 million in 4Q15.
A Look at Netflix’s Valuation Metrics
In international markets, Netflix continues to expand rapidly, but it hasn’t become profitable yet. The company also faces other challenges in international markets.
What Are AT&T’s Plans for Time Warner in Terms of Advertising?
For media companies such as Time Warner (TWX), advertising is a key component of its revenues.
Why Is Netflix Experimenting with Original Content Licensing?
One of the reasons Netflix (NFLX) is venturing into more original content production is the declining cost of content production.
Will Netflix Continue to Grow in International Markets?
In international markets, Netflix (NFLX) had total streaming memberships of 47.9 million and net additions of 3.5 million members in 1Q17.
21st Century Fox’s Rising STAR in India
21st Century Fox owns STAR India, India’s largest media network. STAR India develops, broadcasts, and produces programming for 51 channels in its portfolio.
What Is Comcast’s Outlook on Its Theme Parks Segment?
In September 2016, Comcast’s (CMCSA) NBCUniversal announced an agreement with Time Warner’s (TWX) Warner Bros. This agreement covers television distribution rights in the US for all movies in J.K. Rowling’s Wizarding World franchise.
Why Media Networks Enter Amazon’s Streaming Partners Program
Netflix is the most popular service, with 49% of OTT subscribers. Amazon ranks second to Netflix when it comes to subscribers for its streaming video (or OTT) service.
Why Did Pandora’s Stock Price Rise 8.5%?
Pandora’s share price has fallen by 40.3% year-to-date. However, the company’s stock price was up by 8.5% on the day the earnings were announced.
21st Century Fox’s STAR: A Star in India
Twenty-First Century Fox (FOXA) owns STAR India, India’s (EPI) largest media network. STAR India develops, broadcasts, and produces programming for 51 channels in seven languages in its portfolio.
AT&T’s Big Investment Plans for Mexico: 4G LTE
A few days back, AT&T announced that it plans to invest $3 billion to extend its 4G LTE network across Mexico.
Why Analysts Are Upbeat about Disney
Analysts remain optimistic about Disney Of the 32 analysts covering Disney (DIS), 18 analysts have rated the stock a “buy,” 12 analysts have rated it a “hold,” and only two analysts have rated the stock a “sell.” Analysts have set a stock price target of $117.44 for Disney, with a median target price of $124. […]
Is Netflix Changing Its International Programming Strategy?
Last year, Netflix had said at the UBS (UBS) Global Media and Communications Conference that it had crossed 2 million subscribers in Germany (EWG) and France (EWQ).
How Do Disney’s Technical Indicators Compare with Peers?
Disney has a MACD of -1.3, while Twenty-First Century Fox (FOXA), Time Warner (TWX), and Comcast (CMCSA) have MACDs of -0.8, -0.2 and 0.3, respectively.
Are Analysts Pleased with Discovery’s Improved Financials?
As of August 2, 2016, Discovery Communications (DISCA) stock was trading at $26.42.
Dish Network and Its Valuation Metrics
Dish Network (DISH) has a forward EV-to-EBITDA multiple of 13.5x and a PE multiple of 23.8x.
Netflix: The Latest Technical Indicators
Netflix’s (NFLX) stock price closed at $158.03 on June 23. Netflix is trading 6.1% and 2% above its 100-day and 50-day moving averages of $149.00 and $155.00, respectively.
The Value of HBO for Time Warner
The primary sources of revenue for HBO are through subscription revenues, content licensing fees, and home entertainment sale of its original content.
Will Time Warner’s Programming Strategy for Warner Bros. Work?
Warner Bros. had revenues of $13 billion in 2015, a rise of 4% year-over-year (or YoY). However, Warner Bros. saw a 13% YoY fall in revenues in fiscal 4Q15, with revenues of $3.3 billion.
Why Is Time Warner Still Optimistic about Affiliate Fees Growth?
Media companies like Time Warner (TWX) derive their revenues primarily from affiliate fees and advertising.
A Look at Analysts’ Ratings for Dish Network
On August 26, 2016, Dish Network’s (DISH) stock was trading at $48.84. The stock was trading 4.2% below its 20-day moving average of $51.
Why Credit Suisse Gave Its Recent Thumbs up to 21st Century Fox
During the past month, the FOXA’s stock price has gone up by 11.6% while CBS and Disney have seen their stock prices go up by 15.4% and 6.2%, respectively.
How Does Netflix’s Valuation Compare?
Valuation metrics Earlier in this series, we learned about some key updates for Netflix (NFLX). In this part of the series, we’ll look at how Netflix’s value proposition stacks up against its peers’. Common valuation multiples for companies in the sector include the PE (price-to-earnings), EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and […]
How Analysts Are Rating Disney Stock after Its Earnings
On May 11, 2017, The Walt Disney Company (DIS) was trading at $109.58. That’s 3.0% below its 20-day moving average of $113.
Does Netflix Expect Gains in Its International Business in 3Q16?
Netflix expects its total number of memberships in international markets to be 38.1 million in 3Q16, with a net addition of 2 million members.
What’s the Outlook for Time Warner’s Affiliate Fees in 2017?
Media companies derive their revenues primarily from affiliate fees and advertising. Time Warner expects double-digit growth in affiliate fees for its Turner business division in 2017.
Why Is AT&T Offering DirecTV as an Over-the-Top Service?
AT&T is planning to enter the IP-based video delivery market by offering DirecTV as an OTT (over-the-top) service in the fourth quarter of 2016.
The Analysts’ Take: Comcast Trades at a Discount, but Should You Get In?
On September 6, 2016, Comcast’s stock was trading 0.9% below its 20-day moving average of $67 and 0.5% above its 50-day moving average of $66.
How Analysts Have Rated DISH Network
On March 13, 2017, Dish Network (DISH) stock was trading at $62.05, 0.08% above its 20-day moving average of $62, 1.7% above its 50-day moving average of $61.
Is Verizon Interested in Comcast?
On April 19, Bloomberg reported, citing Verizon Communications’ (VZ) CEO, Lowell McAdam, that Verizon is open to merger discussions with either Comcast (CMCSA), The Walt Disney Company (DIS), or CBS (CBS).
How Wall Street Analysts Are Rating Time Warner
On June 27, 2017, Time Warner (TWX) stock closed at $99.31. It’s trading at 1.3% above its 100-day moving average of $98.
Will Charter Communications Deploy DOCSIS 3.1 Technology?
Charter saw revenues of $781 million in its Internet business in 4Q15, a growth of 16.6% YoY, fueled by net customer additions and “price adjustments.”
Why Did Time Warner Stock Fall after Earnings Release?
On February 10, 2016, Time Warner (TWX) reported its 4Q15 and fiscal 2015 earnings. The company reported revenues of $7.1 billion in 4Q15, a decline of 6% year-over-year.
What Factors Could Impact Netflix in Developing Markets?
Netflix’s business model could be hampered by low Internet penetration or low usage of Internet-connected devices in international territories.
Are Activist Investors Eyeing Time Warner?
On January 7, 2016, the New York Post reported that activist shareholder Corvex Management could be building up its stake in Time Warner.
How Is Disney Planning to Benefit from Star Wars?
Disney’s Consumer Products and Interactive segment’s business has been in a decline for the past two quarters.
The FCC’s New Set-Top Box Proposal: Why All the Controversy?
In late January, the FCC (Federal Communications Commission) put forward a proposal that would give a choice to pay-TV consumers.
Why ESPN Isn’t Concerned about Falling Sports Ratings
In August 2019, Disney is set to expand its college sports programming by launching a successor to its SEC Network—the ACC Network.
Will the New Apple TV Taste Success?
Apple does not disclose unit sales for its Apple TV, which is a part of the company’s Other Products segment.
Can Netflix Memberships Keep Growing in Fiscal 1Q16?
Netflix (NFLX) is expecting total streaming memberships of 81 million with streaming net additions of 6.1 million in fiscal 1Q16. It will be interesting to see if Netflix can achieve its targets.
Comcast Continues Its Focus on Business Services in 2016
Comcast is increasingly focusing on its Business Services segment, which has three growth engines: small business, mid-sized business, and enterprise.
How Discovery’s Technical Indicators, Valuation Metrics Compare to Its Peers
Discovery Communications (DISCA) stock closed at $23.73 on August 4. The stock’s price has fallen 9.8% in the past one-year period.
Comcast and Its Peers Target the Programmatic Ad Market: Why?
Like other companies, Comcast is aiming to grab a share of the programmatic advertising market. The programmatic advertising market in the United States is quickly approaching $9 billion.
What’s Affecting Comcast’s Stock Price?
On March 28, 2017, Comcast’s (CMCSA) stock closed at $37.09. The company’s stock has risen 7.4% YTD (year-to-date).
How Analysts Are Rating Dish Network after 4Q16 Earnings
Of the 26 analysts covering Dish Network (DISH), 13 have given it a “buy” recommendation, and eight have given it a “hold.”
Technical Indicators for AT&T: A Peer Comparison
On December 29, 2016, AT&T (T) was trading 6.6% above its 100-day moving average of $40. In comparison, T-Mobile (TMUS) was trading 16.1% above its 100-day moving average
How Time Warner Expects Its Advertising Market to Shape Up
Time Warner (TWX) stated at its fiscal 1Q17 earnings call that there has been a moderation in advertising compared to fiscal 2Q16.
Why the Growth in Comcast’s High-Speed Internet Business?
Comcast’s (CMCSA) high-speed Internet business had revenues of $3.2 billion in 4Q15, a growth of 9.8% over 4Q14. High-speed Internet was a major contributor to revenue growth.
Why Does Comcast Expect a Rise in Its Capex?
Comcast (CMCSA) continues to expect Comcast Cable’s capex (capital expenditure) as a percentage of revenue to be flat at 15% in 2016.
How Is Amazon Gearing Up to Compete with Netflix?
Amazon (AMZN) has been increasingly focusing on its Prime program, but it’s a potent video streaming player too. How will this affect Netflix?
Netflix Explored New Content Genres in 2015
Netflix has stayed away from sports programming but has not ruled it out entirely. However, Netflix does not consider it to be as attractive an opportunity as news programming.
Why Disney Still Believes ESPN Is on a Winning Path
Disney’s (DIS) ESPN has some investors worried about declining subscriber numbers. But Disney believes there’s nothing to worry about.
How Analysts Are Rating Netflix before Its 1Q17 Earnings
Of the 41 analysts covering Netflix (NFLX), 24 gave it a “buy” recommendation, two gave it a “sell” recommendation, and 15 gave it a “hold” recommendation.
Quadruple Play and the European Cable Industry
Altice hopes to replicate Europe’s “quadruple play” model in the United States. Quadruple play is the bundling of high-speed Internet, television, land line, and mobile service in one package.
Overview of 21st Century Fox’s Fiscal 2015 Earnings
Recently, stocks of media companies such as 21st Century Fox (FOXA) were hammered. In fiscal 2015, the company had revenues of ~$29 billion, a 9% decrease from fiscal 2014.
Where Dish Could Be Headed with Its Spectrum Holdings
Dish ordered to pay $280 million in damages On June 5, according to a Reuters report, a district court in Illinois ordered Dish Network (DISH) to pay $280 million in damages to the US (SPY) government in “an eight-year-old ‘robocall’ telemarketing lawsuit.” The report also stated that in 2009, the FTC (Federal Trade Commission) and […]
Comcast’s Technical Indicators: Peer Comparison
Technical indicators Traders and investors analyze technical indicators when making market entry and exit decisions. Moving averages and the RSI (relative strength index) are among the most widely used technical indicators. An RSI score below 30 signifies that a stock is oversold, while an RSI scores above 70 indicates that a stock is overbought. In […]
Key Takeaways from Liberty Interactive’s 2Q15 Earnings
Liberty Interactive announced its earnings on August 5, 2015. The company had revenue of ~$2.3 billion—a fall of 9% from the same quarter last year.
Here’s How Time Warner Fared in 2Q16
Time Warner (TWX) announced its fiscal 2Q16 earnings on August 3, 2016. It reported revenues of $7 billion, a decline of 5% year-over-year.
Altice Looking to Expand from Europe to the US
In May this year, Altice made a bid for a majority 70% stake in Suddenlink for $9.1 billion. The deal is expected to close by the end of this year.
Why Disney Considers Studio Entertainment a Core Growth Driver
In fiscal 2016, Star Wars: The Force Awakens was Disney’s (DIS) third-highest grossing movie of all time, bringing in $2.0 billion at the global box office.
Netflix Is Exploring Different Genres of Programming
As Netflix faces increasing competition from other video streaming providers in the United States, the company is exploring different genres of programming.
Filmed Entertainment Segment Expected to Be a Hit in Fiscal 2016
21st Century Fox’s The Revenant was estimated to have weekend box office collections of $49.8 million globally as of the report date. The Revenant has also been nominated for multiple Oscars for the upcoming Academy Awards.
Deutsche Bank Downgraded Viacom
On November 23, 2015, StreetInsider.com reported that Deutsche Bank downgraded Viacom (VIAB) to “hold” from an earlier “buy” rating.
Will Time Warner Participate in Hulu’s Online Television Service?
Time Warner has stated that it would follow Disney and Fox in terms of its programming becoming available on Hulu’s new service.
Has the Pay-TV Business Finally Reached a Mature Phase?
Media companies like Dish Network (DISH) and Comcast (CMCSA) in the pay-TV business are suffering from subscriber losses.
DISH’s Sling TV Sees Over-the-Top Success
The increase in Sling TV subscribers had an adverse effect on DISH’s pay-TV ARPU because Sling TV subscribers pay less than traditional pay-TV subscribers.
Is CBS Radio Going Public?
CBS (CBS) is planning to take its asset, CBS Radio, public by the end of this month.
Comcast’s Performance in Fiscal 2Q16 Not That Impressive
Comcast (CMCSA) announced its fiscal 2Q16 earnings on July 27, 2016. It declared EPS of $0.83, which exceeded Wall Street analysts’ estimate of $0.81.
Time Warner Could Benefit from Earlier Video on Demand Releases
Time Warner’s (TWX) Warner Bros. could benefit from its movies moving from theaters to on-demand streaming quicker, which could open up a new revenue stream for the company.
Why Is Comcast Launching Seeso?
Seeso, a subscription-based online video service, is part of Comcast’s strategy to lure Millennials with OTT (over-the-top) services.
Verizon: How Wall Street Analysts Are Rating the Stock
In the previous part of the series, we looked at some updates for Verizon Communications (VZ).
What Factors Are Impacting Comcast’s Stock Price?
On November 27, 2016, Comcast’s (CMCSA) stock price closed at $69.16. The company’s stock has risen 22.5% YTD (year-to-date).
What’s Affecting Dish Network’s Subscriber Base These Days?
Dish Network’s (DISH) subscriber losses continued in fiscal 1Q16. The company announced its fiscal 1Q16 earnings on April 20. Here’s what you need to know.
Why Did ATT Add Turner to Its DirecTV Now Service?
AT&T’S (T) DIRECTV Now, a new OTT (over-the-top) service, seems to be on track to launch later this year.
A Look at Pandora Media’s Future Plans
Pandora Media (P) expects its total revenue growth in 2015 to slow down. It expects its 2015 revenues to be in the range of ~$1.2 billion–$1.6 billion.
A Look at Pandora Media’s 3Q15 Earnings
On October 22, Pandora Media announced its 3Q15 earnings with revenues of $311.6 million, a growth of 30% from 3Q14. Revenues fell short of estimates by ~$1.4 million.
What’s Comcast Planning for Its X1 Set-Top Box?
Comcast’s integration of Sling TV and Netflix As Millennials increasingly prefer to watch content online, pay-TV operators such as Comcast (CMCSA) are finding new ways to attract these viewers to pay-TV. Late last year, Comcast (CMCSA) announced the integration of Dish Network’s (DISH) Sling TV into its X1 set-top box. As a part of this […]