Broadcast stocks could outperform market and media sector in 2018, analyst says
By Trey Williams, MarketWatch
Wells Fargo analyst expects pay-TV subscribers to drop to 82 million by 2022 from 97 million
Broadcast investors should brace for a big 2018.
Wells Fargo analyst Marci Ryvicker, speaking at a broadcast TV conference in New York on Thursday, said the broadcast sector could outperform the overall market and rest of the media sector.
Investors have been spooked by the reports of declining pay-TV subscribers as internet streaming services and live internet TV offerings gain traction, she said.
See:Media sector suffers selloff after Disney, Comcast give guidance scaring investors (http://www.marketwatch.com/story/media-sector-suffers-selloff-after-disney-comcast-give-guidance-scaring-investors-2017-09-07)
Also read:Disney is accelerating the shift to streaming TV, and Wells Fargo says investors' fears are overblown (http://www.marketwatch.com/story/disney-is-accelerating-the-shift-to-streaming-tv-and-wells-fargo-says-investors-fears-are-overblown-2017-09-05)
"Every time either Time Warner (TWX) or a Disney (DIS), or Viacom (VIA) talks about pay-TV sub declines they take everybody down. It doesn't even matter if you're in TV," Ryvicker said. "Investors tend to invest in bundles. If they're nervous about media as a whole--it's called a risk-off trade--they start selling everything and anything that is 'media-related.'"