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Media, Entertainment Stocks Soar In 2013

8 Jan, 2014 By: Doug McPherson


NEW YORK – Investors in media and entertainment stocks during 2013 cleaned up – stocks in the sector rose 46 percent year-over-year on average, according to the Dow Jones U.S. Broadcasting and Entertainment Index as of December 27. The index sat at 990.51 nearing the close of 2013.

To compare, the Standard & Poors 500 Index climbed at 29 percent and the Dow Jones Industrials average was up 26 percent. CBS’ stock was at $63.70 midday on December 30 – 74-percent higher than its $36.69 52-week low, set about a year ago. And Viacom’s stock was up 65 percent at $87.33, up from its low of $53.09 in 2013.

Other climbers (as of Dec. 30):

  • Comcast stock climbed 43 percent to $51.76 in midday trading on the last day of 2013 compared with its low of $36.30 also set nearly a year ago.
  • Walt Disney was at $76.06 – up 56 percent compared with its 52-week low of $48.80.
  • Time Warner witnessed a 49-percent rise to $69.62 from a low of $46.73.
  • 21st Century Fox was at $35.05 – 63 percent higher than its low of $21.54.
  • DirecTV was at $68.10 – up 43 percent from its $47.71 low, set in late February.
  • Dish Network hit $57.50, up 70 percent from its low of $33.79, set in early March.

Analysts say TV station merger and acquisitions also enjoyed a big year. One of the biggest TV station companies, Sinclair Broadcast Group, was heavily involved in deals and nearly tripled its current stock price to $34.32 – up from its $12.30 low.

Netflix was another big winner: its stock rose to $362.60 currently – four times its 52-week low of $89.01. And Google nearly doubled its 52-week low – to $1,112.68 in midday trading on Dec. 30, up from its $695.52 price in late January.

Brandon Bailey, a reporter who covers Google, Facebook and Yahoo for the San Jose Mercury News, says Wall Street is “getting increasingly enthusiastic about the future of online video advertising, now that Facebook’s finally launched its new auto-play commercials, while Twitter, Google and other major players are all beefing up their video services.”

Bailey reports that one tech stock analyst, Evercore Group’s Ken Sena, raised his price targets for a handful of leading Internet companies this week after concluding that video ads are going to be a big moneymaker.  In a new report, Sena says Google, Facebook and Twitter are the best positioned to grab a chunk of what he expects to be an $8.1 billion market in the United States by 2016. But he says AOL, Amazon and even Yahoo should be able to cash in, too.

Rick Ducey, an analyst with BIA/Kelsey says local media markets rose, too. In the first three quarters of 2013, the S&P 500 index increased by 15.6 percent, while BIA/Kelsey’s comprehensive Local Media Market Capitalization Index, which includes more than 55 local media companies, rose by 64.9 percent. Broadcast television was on top with the highest growth in the index.
 


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