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Hollywood’s Reawakening: 3 Media Stocks Poised for a Post-Strike Rebound

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  • These entertainment stocks are worth considering now that the WGA strike has come to a close.
  • Amazon (NASDAQ:AMZN): Although streaming is only a small part of AMZN’s business, it still needs new content.
  • Disney (NYSE: DIS): Disney was already struggling and the strike dealt another blow, but it could be turnaround time.
  • Netflix (NASDAQ:NFLX): NFLX is reliant on great content to stay afloat, so the strike’s end is a big deal for this streamer.
stocks to buy - Hollywood’s Reawakening: 3 Media Stocks Poised for a Post-Strike Rebound

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When Hollywood writers went on strike it took a bite out of some entertainment stocks, but with a deal in place, these are safe stocks to buy now. The streaming space lost a lot of its shine over the past few weeks as the months long strike put a stop to many of the series that have kept people shelling out month after month. In a world where competition has been heating up significantly and content is king, a sudden drought of hot new scripts had a detrimental effect on sentiment. 

The writers strike impacted a great deal of media firms, but before you rush out to stuff your portfolio with big-name entertainment stocks consider that not all of these companies have the same potential. There are some that have been struggling for some time, and the writers strike has only put investors off further. In the case of antiquated movie theater stocks, the market has probably got it right. But for those media companies that are simply navigating some rough waters, made rougher by the strike, this could be an excellent time to pick up a bargain.

Amazon (AMZN)

Amazon (AMZN) prime label on a parcel
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Amazon (NASDAQ:AMZN) is a great example of a media stock to buy that isn’t overly reliant on media. Without its streaming arm, which provides Prime subscribers with quality content, its ecosystem wouldn’t have the same pull. Streaming is part of the reason people sign up and stick to Amazon, thought there are a host of other benefits as well. This Prime ecosystem is an important part of the business, less in terms of revenue and more in terms of data acquisition.

Amazon has an incredible trove of customer data that should allow it to build some powerful marketing tools. From targeted marketing when customers are ready to click buy to targeted ads pinpointing just the right person as they watch their favorite series. Amazon has yet to unleash the full power of its customer data, and that’s something it would lose a foothold on if the strikes had continued to delay new programs coming online.

Disney (DIS)

Entrance to Walt Disney World park. DIS stock.
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Disney (NYSE:DIS) was a key name in the writers strike, but now that things have settled its a turnaround stock to buy. Not only was Disney hurt by the lack of new content available, but the strike came at a time when the House of Mouse was already struggling to keep its head above water. In particular, the group has been up against disappointing subscriber growth in its streaming service, a problem that will likely be compounded by the delay in content creation.

However the streaming business is only a small piece of the Disney machine and the rest is pretty impressive. From theme parks to production studios and cruises, the group’s able to milk its incredibly popular franchises for every possible penny. The writers strike likely slowed the group’s recovery. But, it didn’t derail making Disney stock one of the best turnaround plays within the media segment. 

Netflix (NFLX)

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If anyone was shaking in their boots during the writers strike, it was Netflix (NASDAQ:NFLX) investors, but now that the coast is clear the streaming giant is back at the top of the list of stocks to buy. Netflix, like Disney, was facing negative sentiment after some disappointing subscriber growth. However the group’s most recent results seemed to suggest that things were on the upswing and the new tiered structure and crackdown on account sharing was doing its job.

But with so many streaming services on offer these days, it’s tough to keep consumers’ attention. Netflix works hard to keep its library fully stocked with quality content, an expensive but necessary undertaking. It’s possible that people put Netflix on pause to try out a rival when their favorite series didn’t return on time, which could show up in upcoming results. However once these buzz-worthy shows are back on the table Netflix is likely to see it’s subscribers return in droves. 


Article printed from InvestorPlace Media, https://investorplace.com/2023/10/hollywoods-reawakening-3-media-stocks-poised-for-a-post-strike-rebound/.

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