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8 Best Media Stocks to Buy

When it comes to media stocks and social media stocks, this list has some of the best investing opportunities for your portfolio.
The post 8 Best Media Stocks to Buy appeared first on Investment U.

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2 years ago

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The word “media” is defined as “the main means of mass communication (broadcasting, publishing and the internet) regarded collectively.” Since the way that people communicate and consume information is always shifting, this means that what can be defined as a media stock is constantly shifting as well.

With that being said, I’ve come up with a list of eight media stocks and social media stocks that may be worth adding to your portfolio.

Let’s take a quick look at the best media stocks to buy…

Best Media Stocks to Buy

NOTE: I’m not a financial advisor and am just offering my own research and commentary. Please do your own due diligence before making any investment decisions.

Netflix (Nasdaq: NFLX)

When talking about stocks that completely redefined an industry, Netflix is usually one of the most common companies to reference. In 2007, Netflix essentially put Blockbuster out of business by announcing that its users will be able to stream content directly from their TV, laptop or cell phone. Since 2007, its stock has exploded from $3 per share to over $600 per share. This is an increase of over 18,000%.

Based on its own success, it correctly predicted that other companies may try to copy them and would pull its content from Netflix’s site. To combat this, Netflix has created originals like The Queen’s Gambit, Stranger Things and The Witcher which have helped the company stay relevant once fan favorites like The Office got yanked for other streaming platforms.

It’s true that Netflix faces much more competition today than it did over the past decade. The Streaming Wars are in full swing and a few companies that compete with Netflix today are:

  • Disney+
  • Hulu
  • HBO Max
  • Paramount+
  • Prime Video
  • Peacock
  • AppleTV Plus

However, this has not necessarily slowed down Netflix’s business. Netflix has reported growing revenues of 29.6% on average over the past five years. In 2020, it posted total revenue of $25 billion and a net income of $2.76 billion. It currently has about 209 million Netflix subscribers (about ⅔ of the United States population).

Despite steep competition, Netflix will likely continue to enjoy an “early mover” advantage. By this, I mean that most people have already had a Netflix subscription for years. Since no streaming service is going to have everything viewers want, most people will probably just keep their Netflix subscription and add other platforms.

Netflix stock was up about 60% in 2020 and is up roughly 500% over the past five years.

AMC (NYSE: AMC)

The next stock on this list of media stocks to buy is AMC. It’s the parent company of AMC, IFC and WeTV. These days, you probably recognize AMC as one of the most talked-about tickers on the Reddit group WallStreetBets. This also classifies AMC as a so-called “meme stock.” Depending on the type of investor you are, this either makes you want to buy as many shares as possible or run as far away as you can.

It’s true that AMC was involved in a targeted short squeeze earlier in the year. The price shot up 2,600% in a matter of weeks. It’s also true that COVID-19 crippled AMC’s business while pouring rocket fuel on Netflix. If you’re AMC, it’s impossible to make any money when it’s illegal for people to visit your theaters. This is probably the main reason that it lost over $4.5 billion in 2020.

However, I’m still bullish on AMC and movie theaters in general.

I don’t necessarily have any stats to support this argument, but I’m a believer that people love the movies-theater experience. No matter how much cheaper and easier a streaming service is, it just doesn’t compare to going to the theater.

For me growing up, there was nothing better than getting together with friends and family. We’d sitt with 150 or so strangers in a dark room to share in the movie-going experience. When it came to epic movies like Harry Potter, Pirates of the Caribbean, The Dark Knight or The Avengers, people would literally dress up as characters. They would go at midnight to see them the minute they came out. No streaming service is ever going to have this same energy.

With that said, AMC was only squeaking by on profit margins of 2-3% before the pandemic. I think that the most likely future for AMC is that it’ll be acquired by a major streaming service who will then offer their original content in theaters. There was speculation earlier in the year that Amazon was going to acquire it but these rumors fell flat.

On the bright side, AMC has weathered the worst of the pandemic and now has a fresh surge of capital from the Reddit short squeeze. This will give it time to plan its next strategic move.

AMC stock was down about 60% in 2020 and climbed roughly 100% during the past five years (mainly due to the Reddit short squeeze). This is one of the more volatile media stocks on this list.

ViacomCBS (Nasdaq: VIACA)

In 2019, ViacomCBS emerged after the merger of CBS and Viacom. It’s one of the biggest traditional media companies and are reportedly in the process of getting into the streaming game (better late than never!).

Its revenues have stayed stagnant for the past several years. However, don’t let that fool you. In 2020, it posted total revenue of $25 billion and a net income of $2.42 billion. This puts it on par with Netflix in terms of income. Viacom also has a much lengthier list of assets compared to most companies. These include:

  • Paramount Pictures
  • CBS Entertainment
  • MTV, Comedy Central
  • Nickelodeon
  • Showtime
  • BET

It also owns organizations associated with any of the above. Some of its most popular shows are SpongeBob, iCarly and Paw Patrol.

ViacomCBS’ stock was down roughly 10% in 2020 and about 15% over the past five years.

Disney (NYSE: DIS)

Note: I own a small position in Disney

If ever there was media stock to own, it’s The Mouse. After a handful of acquisitions over the past few years, Disney owns just about everything that you love.

A few of its assets include:

  • Walt Disney Animation
  • FX, Hulu
  • National Geographic
  • ABC
  • Pixar
  • ESPN (including Monday Night Football)
  • Marvel
  • Lucasfilm (Star Wars)
  • 20th Century Studios

This doesn’t even get into its 12 Walt Disney World Parks across the world, two water parks and four cruise ships.

The thing that makes Disney so formidable is its unique ability to promote media across so many different platforms. For example, it profits from a popular character like Baby Yoda in plenty of ways. They can give him his own show on Disney Plus, feature him in any of their parks, create plush dolls to sell, use him to promote new Star Wars movies, or even feature him in a crossover show with The Simpsons if they wanted.

Disney’s latest push has been Disney+, which currently has about 116 million subscribers after just two years. Across Hulu, ESPN+ and Disney+ it has nearly 174 million subscribers. For comparison, Netflix has about 209 million.

The Mouse posted total revenue of $65 billion in 2020 but actually posted a net loss of $2.86 billion. This was partially due to its theme parks being closed for most of the year.

Disney stock was up about 20% in 2020 and is up around 100% over the past five years.

Playboy (Nasdaq: PLBY)

The last of the traditional media stocks to buy is Playboy. If you didn’t realize that Playboy was a public company, that’s because it just went public via SPAC at the end of 2020.

Playboy is not nearly the company that Disney, Netflix or Viacom are. If anything, it’s more like AMC. It’s been struggling to retain readers for years and if there was ever a company to fall prey to “cancel culture” it’s probably Playboy.

With that said, Playboy could actually be at the beginning of a turnaround story. I say this because the Playboy brand is still one of the most recognizable in the world. Even if you’ve never flipped through a magazine there’s still a very good chance that you recognize the bunny silhouette.

The company published an investor relations report in March 2021, which had a few interesting points:

  • It has 97% unaided brand awareness
  • It wants to become known more as a “sexual wellness” company and has made a few acquisitions to make this possible. It predicts this market will be worth $400 billion by 2024.
  • It posted total revenue of $147 million in 2020 which was an 89% increase from 2019.
  • It wants to expand its art offerings, including NFTs.

It just received a fresh infusion of cash from going public to make this happen. Its stock is up close to 150% since going public.

Forbes Is Coming to the Market

One last media stock to buy…Forbes has announced that it’s going public via SPAC with Magnum Opus Acquisition. This deal is still being finalized and will finance Forbes with $145 million. If you’re interested in keeping an eye on this, Forbes will trade on the New York Stock Exchange under the ticker symbol FRBS.

Finally, the line has officially been blurred between traditional media and social media. By this, I mean that these two mediums have somewhat become interchangeable.

For example, former President Donald Trump got into the habit of just tweeting out his immediate thoughts on issues, instead of waiting for a scheduled press conference. Due to this, Twitter and other social media networks have started to be seen as sources of news, information and communication.

Now, we’re going to look at two social media stocks to buy but it’s worth noting that social media companies are facing pressure from lots of different directions. There are data privacy issues, allegations of fake news and tensions between politicians. Keep these in mind before buying into a social media stock.

These are two social media stocks to buy…

Twitter (NYSE: TWTR)

Of all the social media stocks, Twitter has had the toughest time finding its groove in terms of things that investors like to see. This means that it has had trouble maintaining consistent user growth and profitability. It posted a profit of $1.47 billion in 2019 but then a loss of $1.14 billion in 2020.

Its most recent product announcement is a new feature known as “Super Follow.” This will allow people to earn revenue from Twitter by charging a small fee for premium content.

With that being said, Twitter also has a reputation for being the quickest mode of getting news updates. The second a story breaks, it’s usually shared on Twitter before Facebook, Instagram,  TikTok or Snapchat. This is incredibly valuable and shows that Twitter has top-of-mind awareness among its users.

Twitter is also run by CEO Jack Dorsey who is also the CEO of Square and has a good track record.

Its stock was up about 60% in 2020 and is up over 200% over the past five years.

Facebook (Nasdaq: $FB)

Facebook needs little introduction as it’s the biggest social media site in the world. It has about 2.7 billion users and also owns Instagram (one billion users) and WhatsApp (two billion users). This makes it the largest community of people ever created.

It generated a whopping $86 billion in revenue in 2020 as well as a profit of $29 billion. Even though this company has been around for some time, these numbers still represented an impressive 21% and 50% increase from 2019, respectively.

Facebook’s stock was up about 30% in 2020 and is up close to 200% over the past five years. It’s also one of the FAANG stocks. Click on that link to learn more about those tech giants.

Investing in Media Stocks, ETFs and Beyond

Looking for a social media ETF to buy? Try the Global X Social Media ETF.

Some of our younger readers might be quick to point out that TikTok is arguably today’s most popular social media site. Unfortunately, TikTok is owned by the Chinese company ByteDance, which is privately owned. Currently, there’s no way to buy stock in TikTok.

I hope that you’ve found this list of the best media stocks to buy to be valuable! As usual, all investment decisions should be based on your own due diligence and risk tolerance.

If you’re looking for more investing opportunities, consider signing up for Liberty Through Wealth below. It’s a free e-letter that’s packed with tips and tricks. You’ll hear directly from bestselling author and investment expert Alexander Green. He’s also worked as an investment advisor, research analyst and portfolio manager on Wall Street for 16 years.

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Low Iron Levels In Blood Could Trigger Long COVID: Study

Low Iron Levels In Blood Could Trigger Long COVID: Study

Authored by Amie Dahnke via The Epoch Times (emphasis ours),

People with inadequate…

Published

6 hours ago

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March 9, 2024

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Low Iron Levels In Blood Could Trigger Long COVID: Study

Authored by Amie Dahnke via The Epoch Times (emphasis ours),

People with inadequate iron levels in their blood due to a COVID-19 infection could be at greater risk of long COVID.

(Shutterstock)

A new study indicates that problems with iron levels in the bloodstream likely trigger chronic inflammation and other conditions associated with the post-COVID phenomenon. The findings, published on March 1 in Nature Immunology, could offer new ways to treat or prevent the condition.

Long COVID Patients Have Low Iron Levels

Researchers at the University of Cambridge pinpointed low iron as a potential link to long-COVID symptoms thanks to a study they initiated shortly after the start of the pandemic. They recruited people who tested positive for the virus to provide blood samples for analysis over a year, which allowed the researchers to look for post-infection changes in the blood. The researchers looked at 214 samples and found that 45 percent of patients reported symptoms of long COVID that lasted between three and 10 months.

In analyzing the blood samples, the research team noticed that people experiencing long COVID had low iron levels, contributing to anemia and low red blood cell production, just two weeks after they were diagnosed with COVID-19. This was true for patients regardless of age, sex, or the initial severity of their infection.

According to one of the study co-authors, the removal of iron from the bloodstream is a natural process and defense mechanism of the body.

But it can jeopardize a person’s recovery.

“When the body has an infection, it responds by removing iron from the bloodstream. This protects us from potentially lethal bacteria that capture the iron in the bloodstream and grow rapidly. It’s an evolutionary response that redistributes iron in the body, and the blood plasma becomes an iron desert,” University of Oxford professor Hal Drakesmith said in a press release. “However, if this goes on for a long time, there is less iron for red blood cells, so oxygen is transported less efficiently affecting metabolism and energy production, and for white blood cells, which need iron to work properly. The protective mechanism ends up becoming a problem.”

The research team believes that consistently low iron levels could explain why individuals with long COVID continue to experience fatigue and difficulty exercising. As such, the researchers suggested iron supplementation to help regulate and prevent the often debilitating symptoms associated with long COVID.

“It isn’t necessarily the case that individuals don’t have enough iron in their body, it’s just that it’s trapped in the wrong place,” Aimee Hanson, a postdoctoral researcher at the University of Cambridge who worked on the study, said in the press release. “What we need is a way to remobilize the iron and pull it back into the bloodstream, where it becomes more useful to the red blood cells.”

The research team pointed out that iron supplementation isn’t always straightforward. Achieving the right level of iron varies from person to person. Too much iron can cause stomach issues, ranging from constipation, nausea, and abdominal pain to gastritis and gastric lesions.

1 in 5 Still Affected by Long COVID

COVID-19 has affected nearly 40 percent of Americans, with one in five of those still suffering from symptoms of long COVID, according to the U.S. Centers for Disease Control and Prevention (CDC). Long COVID is marked by health issues that continue at least four weeks after an individual was initially diagnosed with COVID-19. Symptoms can last for days, weeks, months, or years and may include fatigue, cough or chest pain, headache, brain fog, depression or anxiety, digestive issues, and joint or muscle pain.

Tyler Durden Sat, 03/09/2024 - 12:50

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Walmart joins Costco in sharing key pricing news

The massive retailers have both shared information that some retailers keep very close to the vest.

Published

9 hours ago

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March 9, 2024

By

As we head toward a presidential election, the presumed candidates for both parties will look for issues that rally undecided voters. 

The economy will be a key issue, with Democrats pointing to job creation and lowering prices while Republicans will cite the layoffs at Big Tech companies, high housing prices, and of course, sticky inflation.

The covid pandemic created a perfect storm for inflation and higher prices. It became harder to get many items because people getting sick slowed down, or even stopped, production at some factories.

Related: Popular mall retailer shuts down abruptly after bankruptcy filing

It was also a period where demand increased while shipping, trucking and delivery systems were all strained or thrown out of whack. The combination led to product shortages and higher prices.

You might have gone to the grocery store and not been able to buy your favorite paper towel brand or find toilet paper at all. That happened partly because of the supply chain and partly due to increased demand, but at the end of the day, it led to higher prices, which some consumers blamed on President Joe Biden's administration.

Biden, of course, was blamed for the price increases, but as inflation has dropped and grocery prices have fallen, few companies have been up front about it. That's probably not a political choice in most cases. Instead, some companies have chosen to lower prices more slowly than they raised them.

However, two major retailers, Walmart (WMT) and Costco, have been very honest about inflation. Walmart Chief Executive Doug McMillon's most recent comments validate what Biden's administration has been saying about the state of the economy. And they contrast with the economic picture being painted by Republicans who support their presumptive nominee, Donald Trump.

Walmart has seen inflation drop in many key areas.

Image source: Joe Raedle/Getty Images

Walmart sees lower prices

McMillon does not talk about lower prices to make a political statement. He's communicating with customers and potential customers through the analysts who cover the company's quarterly-earnings calls.

During Walmart's fiscal-fourth-quarter-earnings call, McMillon was clear that prices are going down.

"I'm excited about the omnichannel net promoter score trends the team is driving. Across countries, we continue to see a customer that's resilient but looking for value. As always, we're working hard to deliver that for them, including through our rollbacks on food pricing in Walmart U.S. Those were up significantly in Q4 versus last year, following a big increase in Q3," he said.

He was specific about where the chain has seen prices go down.

"Our general merchandise prices are lower than a year ago and even two years ago in some categories, which means our customers are finding value in areas like apparel and hard lines," he said. "In food, prices are lower than a year ago in places like eggs, apples, and deli snacks, but higher in other places like asparagus and blackberries."

McMillon said that in other areas prices were still up but have been falling.

"Dry grocery and consumables categories like paper goods and cleaning supplies are up mid-single digits versus last year and high teens versus two years ago. Private-brand penetration is up in many of the countries where we operate, including the United States," he said.

Costco sees almost no inflation impact

McMillon avoided the word inflation in his comments. Costco  (COST)  Chief Financial Officer Richard Galanti, who steps down on March 15, has been very transparent on the topic.

The CFO commented on inflation during his company's fiscal-first-quarter-earnings call.

"Most recently, in the last fourth-quarter discussion, we had estimated that year-over-year inflation was in the 1% to 2% range. Our estimate for the quarter just ended, that inflation was in the 0% to 1% range," he said.

Galanti made clear that inflation (and even deflation) varied by category.

"A bigger deflation in some big and bulky items like furniture sets due to lower freight costs year over year, as well as on things like domestics, bulky lower-priced items, again, where the freight cost is significant. Some deflationary items were as much as 20% to 30% and, again, mostly freight-related," he added.

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Walmart has really good news for shoppers (and Joe Biden)

The giant retailer joins Costco in making a statement that has political overtones, even if that’s not the intent.

Published

10 hours ago

on

March 9, 2024

By

As we head toward a presidential election, the presumed candidates for both parties will look for issues that rally undecided voters. 

The economy will be a key issue, with Democrats pointing to job creation and lowering prices while Republicans will cite the layoffs at Big Tech companies, high housing prices, and of course, sticky inflation.

The covid pandemic created a perfect storm for inflation and higher prices. It became harder to get many items because people getting sick slowed down, or even stopped, production at some factories.

Related: Popular mall retailer shuts down abruptly after bankruptcy filing

It was also a period where demand increased while shipping, trucking and delivery systems were all strained or thrown out of whack. The combination led to product shortages and higher prices.

You might have gone to the grocery store and not been able to buy your favorite paper towel brand or find toilet paper at all. That happened partly because of the supply chain and partly due to increased demand, but at the end of the day, it led to higher prices, which some consumers blamed on President Joe Biden's administration.

Biden, of course, was blamed for the price increases, but as inflation has dropped and grocery prices have fallen, few companies have been up front about it. That's probably not a political choice in most cases. Instead, some companies have chosen to lower prices more slowly than they raised them.

However, two major retailers, Walmart (WMT) and Costco, have been very honest about inflation. Walmart Chief Executive Doug McMillon's most recent comments validate what Biden's administration has been saying about the state of the economy. And they contrast with the economic picture being painted by Republicans who support their presumptive nominee, Donald Trump.

Walmart has seen inflation drop in many key areas.

Image source: Joe Raedle/Getty Images

Walmart sees lower prices

McMillon does not talk about lower prices to make a political statement. He's communicating with customers and potential customers through the analysts who cover the company's quarterly-earnings calls.

During Walmart's fiscal-fourth-quarter-earnings call, McMillon was clear that prices are going down.

"I'm excited about the omnichannel net promoter score trends the team is driving. Across countries, we continue to see a customer that's resilient but looking for value. As always, we're working hard to deliver that for them, including through our rollbacks on food pricing in Walmart U.S. Those were up significantly in Q4 versus last year, following a big increase in Q3," he said.

He was specific about where the chain has seen prices go down.

"Our general merchandise prices are lower than a year ago and even two years ago in some categories, which means our customers are finding value in areas like apparel and hard lines," he said. "In food, prices are lower than a year ago in places like eggs, apples, and deli snacks, but higher in other places like asparagus and blackberries."

McMillon said that in other areas prices were still up but have been falling.

"Dry grocery and consumables categories like paper goods and cleaning supplies are up mid-single digits versus last year and high teens versus two years ago. Private-brand penetration is up in many of the countries where we operate, including the United States," he said.

Costco sees almost no inflation impact

McMillon avoided the word inflation in his comments. Costco  (COST)  Chief Financial Officer Richard Galanti, who steps down on March 15, has been very transparent on the topic.

The CFO commented on inflation during his company's fiscal-first-quarter-earnings call.

"Most recently, in the last fourth-quarter discussion, we had estimated that year-over-year inflation was in the 1% to 2% range. Our estimate for the quarter just ended, that inflation was in the 0% to 1% range," he said.

Galanti made clear that inflation (and even deflation) varied by category.

"A bigger deflation in some big and bulky items like furniture sets due to lower freight costs year over year, as well as on things like domestics, bulky lower-priced items, again, where the freight cost is significant. Some deflationary items were as much as 20% to 30% and, again, mostly freight-related," he added.

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