Media Stocks Need Streaming Growth for Earnings Lift, Morgan Stanley Says
Investors eyeing media stocks battered during the coronavirus pandemic from a TV ad recession and cord-cutting should tune into the streaming opportunities of TV networks for potential earnings growth, Morgan Stanley analyst Benjamin Swinburne argued Tuesday. In an investors note, Swinburne said the impact of cord-cutting and ad revenue drops is already priced into TV-centered media stocks, so the next leg up for share prices should come from proof entertainment players can defy Netflix and drive sustainable earnings from the streaming space.