Disney, Warner Bros. shares rise as part of broad rally in streaming stocks

By Tomi Kilgore

Roku's stock rockets more than 30% to help fuel streaming rally

The stocks of companies in the streaming video business enjoyed a broad rally Thursday, as upbeat results from Roku Inc. and a big jump in the broader stock market emboldened investors.

Shares of Warner Bros. Discovery Inc. (WBD), the parent of the Max (formerly HBO Max) service, jumped 8.7% toward a three-week high in afternoon trading, putting them on track for the biggest one-day gain since they ran up 8.8% on Jan. 4.

The stock has now soared 14.8% amid a four-day win streak.

Walt Disney Co., the parent of the Disney+ and ESPN+ streaming services, saw its stock (DIS) climb 2.5%. It was among the top gainers in the Dow Jones Industrial Average DJIA, which powered up 491 points, or 1.5%.

And Netflix Inc.'s stock (NFLX) traded 1.1% higher toward a seven-week high. The streaming giant's shares have tacked on 6.7% amid a four-day win streak.

Elsewhere, Paramount+ and CBS parent Paramount Global shares (PARA) leapt 9.0% toward their best day in nine months. The stock has now gained 10% since it closed at a 14-year low of $10.70 on Friday.

The streaming sector had endured a rough couple of months, as stubborn inflation, higher interest rates and worries about a slowing economy prompted consumers to cut back on spending. But an indication that interest rates may have peaked helped fuel buying in beaten-down stocks.

Meanwhile, Roku's stock (ROKU) blasted 31% higher toward a seven-week high.

While the streaming platform provider for TVs reported late Wednesday a wider-than-expected loss, it easily beat revenue projections, reported a surprise profit by one adjusted financial metric and provided an upbeat outlook, amid a "solid rebound" in video ads.

D.A. Davidson analyst Tom Forte reiterated his buy rating on Roku's stock, but lifted his price target to $101 from $90.

"[W]e were encouraged by the stabilization in the digital ad market despite an uncertain macroeconomic environment," Forte wrote in a note to clients.

Shares of FuboTV Inc. (FUBO), which operates a sports-first TV streaming company, soared 12.4%.

-Tomi Kilgore

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11-02-23 1417ET

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