3 Sorry Media Stocks to Sell in February While You Still Can


  • From changing consumer habits to competitive pressures, find out which stocks might be ripe for selling.
  • Paramount Global (PARA): Paramount Global faces skepticism regarding its business strategy.
  • TKO Group Holdings (TKO): TKO is under scrutiny due to allegations against Vince McMahon. 
  • The New York Times Company (NYT): The New York Times faces challenges in adapting to the digital shift. 
media stocks to sell - 3 Sorry Media Stocks to Sell in February While You Still Can

Source: Shutterstock

As the stock market is always changing, intelligent investors are always on the lookout to fine-tune their portfolios. Their goal is to eliminate the underachievers and strengthen their holdings in assets. As we go into the month of February, the focus shifts to the media industry. Let us look at the latest media stocks to sell.

Certain companies have shown indications of falling behind their competitors. As a result, they are now placed on this list of media stocks to sell. The purpose of this recommendation is to provide people who are interested in optimizing their investing strategy with an important heads-up. In this context, the attention is not just on swings in the near term; rather, it is on underlying difficulties that indicate worries for the long run.

The process of identifying these media stocks is not about making rash choices. Instead, it is about making well-informed and smart changes in order to improve the overall health of your investing portfolio and bring out its full potential.

Paramount Global (PARA)

PARA stock: the Paramount plus logo on a phone in front of a screen displaying various Paramount TV shows and movies
Source: viewimage / Shutterstock

There is a lot going on in the media stocks world right now, and Paramount Global (NASDAQ:PARA) is having a hard time. When Byron Allen offered to buy the business, it got a lot of attention. Its value went up by 10% after this deal, which was worth $30 billion with all the debts added in. But it was still 30% less than what Allen was willing to pay for the shares without the right to vote. The quick rise in interest in Paramount means that people from Skydance Media and Warner Bros. Discovery (NASDAQ:WBD) are looking at the company. This suggests that the company is ready to be bought out.

Even so, Paramount Global’s journey with its stock has not been easy. The closing price showed substantial volatility over the last few months. Professionals were wary of the business and asked what its business plan was in a world where making and delivering media is always changing. Some people also don’t trust Paramount’s streaming service, Paramount+, because they don’t think it will be able to make back the money that was put into it. Talks of offering a discount on the service will naturally make investors uneasy.

The way buyers feel shows that they are being careful. A lot of people are worried about the company’s plans, especially how it will do in the streaming business. There is a breaking point for Paramount Global. It has to deal with an industry that changes quickly and come up with new ideas to stay relevant.

TKO Group Holdings (TKO)

UFC fighters in a cage match.
Source: A.RICARDO/Shutterstock.com

To get around in the rough sea of media stocks, TKO Group Holdings (NYSE:TKO) has to steer through rough waves. TKO is now in the unwanted spotlight because of new claims against Vince McMahon that include trafficking and physical and mental abuse. The company quickly tried to separate itself from the claims, stressing how little McMahon was involved and how it was responding internally to these serious allegations.

When it comes to money, TKO is having its own problems. TD Cowen’s careful “hold” rating shows how hesitant the market is, affected by both shocking news stories and real legal risks. Over a thousand former UFC athletes are seeking justice, which raises the possibility of a class action case. This could put a pressure on TKO’s finances and its ability to reward its investors.

It’s hard to say what will happen next for TKO. There are legal fights going on and the economy is not looking good, which makes it less appealing as an investment. TKO is at a very important point right now, as these problems play out. Investors and market experts are all closely watching what it does next. As a result, it is on this list of media stocks to sell.

The New York Times Company (NYT)

The headquarters of the New York Times (NYT) at night.
Source: Osugi / Shutterstock.com

When it comes to the unstable media environment, The New York Times Company (NYSE:NYT) is in rough water. It created shade with the case it made against OpenAI for allegedly violating copyright. This court fight shows how hard it is to deal with AI and property in the modern world.

The company’s finances are also a mixed bag. It made $2.31 billion in 2022, which is an 11% rise from the previous year. But overall revenues fell 21%. This difference shows that the company is having trouble changing its business plan.

It’s clear that print has given way to digital. The number of printed copies dropped to 310,000 a week in 2022. This trend is similar to how the industry is moving toward digital media. In answer, The New York Times has been changing how it does things. Digital payments are now a very important chunk of the company’s revenue.

These things give The New York Times Company a complicated picture. It’s dealing with unclear laws, changing finances and a huge shift in the business. These things make it stand out among the media stocks to sell, showing how complicated the relationship is between old and new in the media world.

On the publication date, Faizan Farooque did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.

Article printed from InvestorPlace Media, https://investorplace.com/2024/02/3-sorry-media-stocks-to-sell-in-february-while-you-still-can/.

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