Big Media Stocks Struggle as Tech Giants Soar: A Midyear Analysis

Disney and Fox Corp. are defying the downward trend in showbiz shares at the midyear mark of 2024. While traditional media giants are experiencing double-digit stock price declines, Disney and Fox Corp. are standing out with their resilience. Big Tech and Netflix, on the other hand, are seeing double-digit gains year to date.

Despite the natural progression of tech companies inching into the entertainment industry, companies like Apple, Meta, Alphabet, and Netflix have not shown interest in acquiring traditional media companies. Amazon made a small move with its purchase of MGM in 2022 but has not pursued larger targets like Paramount Global and Warner Bros. Discovery, which have seen significant declines in their stock prices.

On the other hand, Disney shares have rebounded this year thanks to the success of its theme parks and streaming services like Disney+ and Hulu. Fox Corp. has also seen a bounce in its stock price due to the strength of its news and sports cable assets.

In contrast, tech companies like Meta, Netflix, Alphabet, Amazon, and Apple are experiencing significant gains in their stock prices. The media heavyweights are expected to face more challenges as the year progresses, especially with the uncertain political and regulatory environment surrounding mergers and acquisitions.

With the 2024 presidential race adding to the uncertainty, most Big Media stocks are likely to remain under pressure for the rest of the year. The industry is facing headwinds and obstacles in M&A activity, which are impacting showbiz stocks across the board.