The streaming video industry experienced a significant boost in the stock market on Thursday, driven by positive results from Roku Inc. and a strong overall market performance.
Warner Bros. Discovery Inc. Sees Impressive Gain
Shares of Warner Bros. Discovery Inc. (WBD), the parent company of Max (formerly HBO Max) service, surged 8.7% to reach a three-week high during afternoon trading. This marks the biggest one-day gain since January 4th when the stock jumped 8.8%.
With a four-day winning streak, Warner Bros. Discovery Inc. has seen a remarkable 14.8% increase in stock value.
Walt Disney Co. and Netflix Inc. Also Benefit
Walt Disney Co., the parent company of popular streaming services Disney+ and ESPN+, witnessed a 2.5% climb in the stock market. This gain places Disney among the top performers in the Dow Jones Industrial Average (DJIA), which rose 491 points or 1.5%.
Netflix Inc., the leading streaming giant, also experienced a positive trend with its shares trading 1.1% higher and reaching a seven-week high. Netflix has enjoyed a steady four-day winning streak, resulting in a 6.7% stock increase.
Paramount+ and CBS Parent Paramount Global Make a Strong Comeback
Paramount+ and CBS parent Paramount Global saw their shares (PARA) jump by 9.0%, marking their best performance in nine months. This significant gain follows a 10% increase since the stock hit a 14-year low of $10.70 on Friday.
Streaming Sector Rebounds Amidst Economic Concerns
The streaming sector had faced challenges over the past few months due to concerns over rising inflation, increased interest rates, and an uncertain economic outlook, causing consumers to reduce their spending. However, recent signs indicating that interest rates may have reached their peak have sparked renewed interest in undervalued stocks.
Roku Inc. Surges Despite Widening Loss
Roku Inc.'s stock (ROKU) soared 31% to reach a seven-week high, despite reporting a larger-than-expected loss. The company's strong revenue performance, unexpected profit by one adjusted financial measure, and positive outlook driven by a "solid rebound" in video ads has instilled confidence in investors.
According to D.A. Davidson analyst Tom Forte, Roku's stock remains a buy, and he has raised the price target to $101 from $90 due to the encouraging signs in the digital ad market.
FuboTV Inc. Also Witnesses Impressive Gains
Shares of FuboTV Inc. (FUBO), a sports-first TV streaming company, surged by 12.4%, further contributing to the overall rally in the streaming industry.