The main source of income for cinema and entertainment platforms is the paid subscription and the competition to see who gets the most of the cake is fierce. An exponential growth that seems to be slowed down in the great titans of the sector, and investors have taken note of it. This sector is one of the worst performers in the S&P 500 this year. The main benchmarks lose more than 40% in 2022, despite the fact that in the last 30 days it is one of the industries that rebounds the most, recovering 29%.
The prize goes to the most used digital platform in the world, Netflix, which has lost 59% of its share price since the beginning of the year, being by far the most affected in the sector and in the North American stock market index. But it’s not all bad news. These were more bulky a month ago, since it picks up more than 39% in the last four weeks. All despite the fact that Netflix reported the worrying loss of 970,000 subscriptions in the second quarter of the year. Net profit estimates for the company forecast that the result will fall by 10% compared to 2021.
Netflix’s disastrous year in the S&P 500 is accompanied by the legendary Californian firm Warner Bros, which loses 45% on the stock market and that it has not taken advantage of this latest rebound that Wall Street is experiencing. Unlike the first, analysts see a higher upside potential, around 90%.
For its part, Walt Disney has left about 30% since the beginning of the year, although only in the last two days recover 12% after surprising by 20% analysts’ forecasts of its results. After that, Goldman, for example, has raised the price target from $130 to $140, above the consensus price. The firm has the best recommendation in the sector.
