Disney Warner Bros. Discovery report earnings after brutal week for tech companies
Following a brutal week for tech companies on Wall Street, it’s now media’s turn under the earnings spotlight as recession fears grow.Why it matters: Some of the largest tech giants, including Meta and Alphabet, have lost billions in market value without much hope on the horizon.
• Meta alone is seeing its stock trade at a six-year low and a challenged ad business threatens Mark Zuckerberg’s ambitious — and expensive — metaverse bet.Driving the news: The next two week s will serve as a state of the media industry as 2022 winds down.
• This week alone will see Fox, Lionsgate and Warner Bros. Discovery , while Disney and AMC Entertainment will report next week .
• Fox and Lionsgate have both been active in the M&A space. Lionsgate for months was looking to offload Starz before pivoting to a sale of its studio business.
• Fox, meanwhile, is looking at recombining with News Corp.The big picture: While most tech companies came through the week with a black eye or two, the early results for media companies this earnings season have been less disastrous.
• Netflix not only reversed back-to-back quarters of subscriber declines , it added more customers than expected during the third quarter. The streaming giant’s stock is up 22% since then and is launching its anticipated ad-supported tier this week .
• Though it topped estimates, Comcast’s pay-TV and streaming businesses remain challenged. But its stock hasn’t nosedived.
Why it matters: Some of the largest tech giants, including Meta and Alphabet, have lost billions in market value without much hope on the horizon.
• Meta alone is seeing its stock trade at a six-year low and a challenged ad business threatens Mark Zuckerberg’s ambitious — and expensive — metaverse bet.
Driving the news: The next two weeks will serve as a state of the media industry as 2022 winds down.
• This week alone will see Fox, Lionsgate and Warner Bros. Discovery, while Disney and AMC Entertainment will report next week.
• Fox and Lionsgate have both been active in the M&A space. While most tech companies came through the week with a black eye or two, the early results for media companies this earnings season have been less disastrous.
• Netflix not only reversed back-to-back quarters of subscriber declines, it added more customers than expected during the third quarter.
