pool adsCable Stocks are red hot, right?
Cable and Media stocks are surging higher as merger and acquisition talks are flooding the industry. Liberty Media Crop (NASDAQ:LMCA) is exploring options in which Charter Communications Inc (NASADAQ: CHTR) will take over Time Warner Cable Inc (NYSE:TWC).
Liberty Media holds 27% of Charter Communications and since that acquisition, analysts and investors have speculated on industry consolidation. Time Warner Cable is not the only pay-TV distributor Charter is eying-up. Time Warner Cable is also a potential target.
Most of the consolidation talk in the industry surrounding Charter Communications, Time Warner Cable and Cablevision is the desire to be more like Comcast Corporation (NASDAQ:CMCSA) reported yet another strong quarter on Wednesday, pushing the stock up over 5%. Comcast’s second quarter lost fewer video subscribers from the year before, while increasing revenues.
During the conference call, Brian Roberts, Comcast’s CEO, said, “We made up relative performance versus our other competitors.” Some of NBC competition for ad dollars includes Walt Disney Co.’s ABC, CBS Corporation (NYSE:CBS) and 21st Century Fox Inc.’s Fox among broadcast networks.
The Walt Disney Company (NYSE:DIS) is expected to report substantially higher second-quarter profits on 8.6.13. Disney has enjoyed huge ad growth at the virtually competition-free ESPN. Disney is expected to show net income of $1.39 billion, or 76 cents a share, for the period ended March 31. That’s a 31 percent increase from $1.14 billion, or 58 cents a share, for the same period last year. Analysts polled by Thompson Reuters expect Disney’s revenue will rise 8.9 percent to $10.48 billion from $9.63 billion a year earlier. Stock Traders Daily’s report on DIS shows it neutral near term, but that can change with earnings, and we will be monitoring it.
The combination of strong earnings and industry consolidation can continue to draw investors into cable and media stocks.
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