PRISM AdTech & Media Spotlight: S&P 1500 Communications Drops; Paramount Surges and Netflix Gains, Roblox Slips

New York, February 01, 2024 - PRISM MarketView - US equities finished the day lower Wednesday at worst levels after the Federal Open Market Committee (FOMC) meeting today left interest rates unchanged. Big tech was broadly down, led by Alphabet ($GOOGL) following lackluster earnings. The S&P 1500 Communications Services Index dropped by (3.8%) versus the S&P 500 and NASDAQ. All segments settled lower including AdTech which was down (1.9%), Broadcasting which fell by (0.6%), TV station groups (1.6%), and radio station groups (4.8%). Streaming was up by +0.1%, Live Entertainment gained +0.3% and Paramount Global ($PARA) was a notable outperformer.

Yesterday’s notable industry gainers were Paramount Global ($PARA) which soared nearly 10.0% during the day to close up +6.7% following a takeover bid by Allen Media Group valued at $14.3 billion in equity. KeyBanc stated it believes Paramount should immediately take this deal, citing more than 50% premium compared to yesterday’s close. Wells Fargo described the offer as “credible”, increasing the likelihood that Paramount ultimately is acquired. TechTarget ($TTGT) rose +1.9% after being upgraded to buy from neutral at UBS, Netflix ($NFLX) gained +0.2% and Electronic Arts ($EA) was up 0.02%.

Notable decliners on Wednesday were Zoom Video ($ZM) which lost (3.8%), AMC Entertainment ($AMC) which fell by (1.5%) but lead the Film Exhibition group, and Roblox ($RBLX) which was down (0.8%) in spite of Wedbush maintaining its Outperform rating. Warner Bros. Discovery ($WBD) settled down (0.8%) after M&A speculation was revived by Allen Media’s bid for Paramount Global.

PRISM MarketView’s Emerging AdTech & Media Index tracks small and micro-cap companies making compelling contributions to the industry. Wednesday’s top index performer was Scienjoy Holding Corporation ($SJ) which gained 1.49% to reach $3.39 at close. The company announced Tuesday that its 8th annual Gala and Award Ceremony has been held in Beijing, recognizing a total of 76 broadcasters and over 100 multi-channel networks with awards. Wednesday’s decliners included Veritone, Inc, ($VERI) which fell by 6.78%, iHeartMedia ($IHRT) which lost 5.90%, and Digital Turbine, Inc ($APPS) which was down 5.43% at the closing bell. The index’s current value is $61.90. 

Shares in media and entertainment giant, Paramount Global (Nasdaq: PARA), are up nearly 10% in intraday trading on Wednesday after Allen Media Group made a $14.3 billion offer for the company today.

META Rejected Efforts to Improve Children’s Safety
The New York Times is exploring using generative artificial intelligence in its newsroom, according to the Times’ director of AI initiatives, Zach Seward. Mr. Seward stated that he is building a team “focused on prototyping uses of generative AI and other machine-learning techniques to help with reporting and how The Times is presented to readers”. It is unclear what role the tech will play in the newspaper’s day-to-day operations.

Lawmakers have released 90 pages of internal emails showing that Meta has avoided committing to improving child safety on its platforms. The emails show that in 2021, CEO Mark Zuckerberg declined a proposal to hire 45 new staff members dedicated to children’s well-being. Meta announced earlier this month that it would roll out new tools geared toward protecting children online, including barring those under 18 from seeing posts about suicide, self-harm and eating disorders.

After Netflix stock gains outpaced predictions so quickly, analysts are finding it difficult to value the company. Investors remain enthusiastic, particularly after Netflix announced a huge profit jump for the last three months of 2023 and its deal with TKO Group to air WWE’s “Raw” and other programming beginning in 2025 prior to the earnings.

Media Contact
Company Name: Prism MarketView
Email: info@prismmarketview.com
Phone: 646-863-6341
Website: https://prismmarketview.com