Media stocks are highly accessible and often easy for the average investor to understand. If you follow any of the major media companies, then you might feel more comfortable about investing in their stocks.
From Walt Disney to the New York Times, these are the media stocks that look most promising for long term investors this May.
Walt Disney Co. (NYSE: DIS)
Disney is currently riding high, thanks to the $1.21 billion that it made at the weekend box office with Avengers: Endgame. The successful Marvel franchise has been a huge money maker for the company, and there could be more to come for patient investors.
Streaming service Disney+ will release later this year, bringing the company into direct competition with Netflix. Disney’s service will undercut Netflix’s pricing to gain a large market share in a relatively brief period. Upcoming releases like The Lion King and Aladdin, both live action remakes of classic animated films, could also help to boost Disney’s bottom line.
Disney also owns the multi-billion-dollar Star Wars franchise, which will help the company to generate new revenue streams in the coming years.
Disney stock is up 27.04% year to date, but there could still be growth headroom thanks to the success of the Avengers film and other projects in the pipeline.
Media Stocks Facebook (NASDAQ: FB)
Facebook shares are trading high today but waiting on this stock for a week or so could allow for a bargain as prices cool. The company just announced better than expected earnings, but also warned that it could pay up to $3 billion for an FTC privacy violation fine.
The company is currently working to increase confidence in its services and regain the trust of its audience. Even as it faces growing pains, Facebook remains the world’s largest social media network with massive advertising revenue potential.
Facebook stock has grown over 48% year to date.
The New York Times (NYSE: NYT)
New York Times Co. produces one of the most read news publications in the world. Stock is up 48.72% year to date.
An ongoing shift to a subscription-based business model has helped to protect revenues for the company. Printed media is on the decline, which is why the New York Times has doubled down on its digital distribution channels. By publishing online, the company can better target an international audience with a stable income stream.
In the last two years, the company has reversed its sales decline. Revenue grew 7.73% in 2017, and 4.35% in 2018. Digital distribution has reduced operating costs, with the company now reporting a profit margin of almost 60%.
Media stocks offer great exposure to consumer markets. Each listed stock represents a compelling addition for your portfolio this May.
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