Disney, Warner Bros. shares rise as part of broad rally in streaming stocks
By Tomi Kilgore
Roku's stock rockets more than 30% to help fuel streaming rally
The stocks of companies in the streaming video business enjoyed a broad rally Thursday, as upbeat results from Roku Inc. and a big jump in the broader stock market emboldened investors.
Shares of Warner Bros. Discovery Inc. (WBD), the parent of the Max (formerly HBO Max) service, jumped 8.7% toward a three-week high in afternoon trading, putting them on track for the biggest one-day gain since they ran up 8.8% on Jan. 4.
The stock has now soared 14.8% amid a four-day win streak.
Walt Disney Co., the parent of the Disney+ and ESPN+ streaming services, saw its stock (DIS) climb 2.5%. It was among the top gainers in the Dow Jones Industrial Average DJIA, which powered up 491 points, or 1.5%.
And Netflix Inc.'s stock (NFLX) traded 1.1% higher toward a seven-week high. The streaming giant's shares have tacked on 6.7% amid a four-day win streak.
Elsewhere, Paramount+ and CBS parent Paramount Global shares (PARA) leapt 9.0% toward their best day in nine months. The stock has now gained 10% since it closed at a 14-year low of $10.70 on Friday.
The streaming sector had endured a rough couple of months, as stubborn inflation, higher interest rates and worries about a slowing economy prompted consumers to cut back on spending. But an indication that interest rates may have peaked helped fuel buying in beaten-down stocks.
Meanwhile, Roku's stock (ROKU) blasted 31% higher toward a seven-week high.
While the streaming platform provider for TVs reported late Wednesday a wider-than-expected loss, it easily beat revenue projections, reported a surprise profit by one adjusted financial metric and provided an upbeat outlook, amid a "solid rebound" in video ads.
D.A. Davidson analyst Tom Forte reiterated his buy rating on Roku's stock, but lifted his price target to $101 from $90.
"[W]e were encouraged by the stabilization in the digital ad market despite an uncertain macroeconomic environment," Forte wrote in a note to clients.
Shares of FuboTV Inc. (FUBO), which operates a sports-first TV streaming company, soared 12.4%.
-Tomi Kilgore
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
11-02-23 1417ET
Copyright (c) 2023 Dow Jones & Company, Inc.-
What’s Happening in the Markets This Week
-
Worst-Performing Stock ETFs of the Quarter
-
Q3 in Review and Q4 2024 Market Outlook
-
Top-Performing Stock ETFs of the Quarter
-
September Jobs Report Forecasts Show Moderate Hiring Gains
-
Port Strike a Headache for Shippers but a Potential Tailwind for Certain US Transport Stocks
-
13 Charts on Q3′s Roller-Coaster Rally for Stocks and Bonds
-
5 Stocks to Buy Instead of Overpriced US Equities
-
Consumer Defensives: Despite Angst, Thirsty Investors Have Names to Pursue
-
Industrials: Many Stocks Overvalued After Q3 Outperformance
-
Basic Materials: Despite Index Rise, We See Multiple Long-Term Opportunities
-
What the Election Could Mean for Big Tech Stocks
-
3 Lessons From Recent Stock Market Drama
-
Consumer Cyclicals: Even Amid Moderating Consumer Spending, We See Discounts
-
Healthcare: Valuations Look Fair Overall, With Select Industries Still Undervalued
-
Utilities: Falling Interest Rates, Growth Outlook Boosting Stocks