On May 17, 2012, Facebook (FB) raised $16 billion in one of the largest and messiest initial public offerings of all time. The shares, which originally sold for $38 each, fell within a few weeks to $26 and by September to $18. On news of strong revenue gains, Facebook soared to $72 in early March, then started to drop again. The question for current shareholders is whether to hang on -- and for noninvestors, whether to take the plunge.
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Facebook isn�� the only new-media tech stock that had been soaring until a vicious correction began in March. The same holds for shares of other companies whose livelihood is linked to the Internet. Twitter (TWTR) has nearly doubled in the five months since its IPO raised about $2 billion. Shares of TripAdvisor (TRIP), the world�� largest online travel company, have jumped from $30 on October 31, 2012, to $86 today. Among large online businesses, Amazon.com (AMZN) has quintupled over the past five years, and Netflix (NFLX) has quintupled in just a year and a half. (Prices and returns are as of April 4; stocks in boldface are those I recommend.)
Best Transportation Companies To Buy Right Now: Time Warner Inc.(TWX)
Time Warner Inc. operates as a media and entertainment company in the United States and internationally. It operates in three segments: Networks, Filmed Entertainment, and Publishing. The Networks segment provides domestic and international networks, premium pay and basic tier television programming services, and digital media properties, which primarily consist of brand-aligned Websites. Its premium pay television services consist of the multi-channel HBO and Cinemax premium pay television services. This segment provides programming to cable system operators, satellite service distributors, telephone companies, and other distributors; sells advertising; and licenses original programming to domestic and international television networks. The Filmed Entertainment segment produces and distributes feature films, television and other programming, and videogames; distributes home video products; and licenses rights to its feature films, television programming, and characters. T he Publishing segment publishes magazines and books; and operates various Websites, as well as engages in marketing services and direct-marketing businesses. This segment publishes magazines on style and entertainment, lifestyle, news, and sports. The company?s brands include TNT, TBS, CNN, HBO, Cinemax, Warner Bros., New Line Cinema, People, Sports Illustrated, and Time. Time Warner Inc. was founded in 1985 and is headquartered in New York, New York.
Advisors' Opinion:- [By Douglas A. McIntyre]
The future of online video content and advertising sales relies tremendously on video, according to most experts. Video ads carry a premium over old display ones. Premium video content is something people pay for, through services such as Hulu and even paid television content. Time Warner Inc.’s (NYSE: TWX) HBO’s new “Go” project allows subscribers to stream 1,700 programs, and the pay television property has aggressively marketed this to people who use tablets regularly. At some point soon, most pay TV and network TV companies will target the slew of devices with screens smaller than traditional PCs, but large enough, usually, to view video clearly.
- [By Rick Munarriz]
Wedbush Securities analyst Michael Pachter -- a notorious bear who's been burned with his $65 price target on Netflix that he recently raised to $80 -- argued on Yahoo!'s Breakout last week that Netflix isn't a fitting rival to Time Warner's (NYSE: TWX ) HBO because it doesn't own its original programming the way HBO does with Game of Thrones or The Sopranos.
Top 5 Media Stocks To Invest In Right Now: Charter Communications Inc.(CHTR)
Charter Communications, Inc., through its subsidiaries, provides entertainment, information, and communications solutions to residential and commercial customers in the United States. The company offers cable video programming services, such as basic and digital video, premium channels, OnDemand, pay-per-view, high definition television, digital video recorder, and online video services; Internet services; Charter.net, which provides multiple e-mail addresses, as well as various entertainment, games, news, and sports content; and telephone services. It also provides broadband communications solutions, such as Internet access, data networking, fiber connectivity to cellular towers and office buildings, video entertainment services, and business telephone services under the Charter Business brand name to business and carrier organizations. As of December 31, 2011, the company served approximately 4.1 million video customers; approximately 3.5 million Internet customers; appr oximately 1.7 million telephone customers; and approximately 476,200 commercial primary service units. Charter Communications, Inc. was founded in 1999 and is based in St. Louis, Missouri.
Advisors' Opinion:- [By Sue Chang]
On Friday, Charter Communications Inc. (CHTR) �is slated to report quarterly results. Analysts project the company to post fourth-quarter earnings of 26 cents a share.
Top 5 Media Stocks To Invest In Right Now: DISH Network Corporation(DISH)
DISH Network Corporation, through its subsidiaries, provides direct broadcast satellite (DBS) subscription television services in the United States. It offers programming that includes approximately 280 basic video channels, 60 Sirius satellite radio music channels, 30 premium movie channels, 35 regional and specialty sports channels, 2,800 local channels, 250 Latino and international channels, and 55 channels of pay-per-view content. The company also offers local HD channels in approximately 160 markets and 215 national HD channels; and receiver systems, including a small satellite dish, digital set-top receivers, and remote controls. In addition, it provides DISHOnline.com, which enables DISH Network subscribers to watch 150,000 movies, television shows, clips, and trailers; DISH Remote Access that enables subscribers to remotely manage their DVRs using compatible mobile devices, such as smartphones, tablets, and laptops through their broadband-connected receiver; and Go ogle TV that enables DISH Network subscribers to search the Internet, check email, interact with social media, and find additional online programming content while simultaneously watching television. As of March 31, 2011, the company had approximately 14.191 million customers. DISH Network provides receiver systems and programming through direct sales channels; and independent third parties, such as small satellite retailers, direct marketing groups, local and regional consumer electronics stores, nationwide retailers, and telecommunications companies. The company was founded in 1980 and is headquartered in Englewood, Colorado.
Advisors' Opinion:- [By Rick Munarriz]
Well, let's assess the knocks on Qwikster. Members complained that they would be inconvenienced by having to maintain two separate accounts. The promise to add video games to Qwikster would've made it more competitive with DISH Network's (NASDAQ: DISH ) Blockbuster and Coinstar's (NASDAQ: OUTR ) Redbox that offer console title rentals, but subscribers outside of diehard gamers didn't seem to care. Folks were just starting to overcome Netflix's decision to stop offering streaming at no additional cost to unlimited disc-based plans, and now Qwikster was asking them to separate their streams from their discs.
- [By Michael Lewis]
The DISH Network (NASDAQ: DISH ) , Clearwire (NASDAQ: CLWR ) , Sprint (NYSE: S ) , Softbank M&A extravaganza continues to become more confusing and fun to watch. As the CFIUS clears,�the Japanese bank for its proposed acquisition of telecom Sprint, competing bidder DISH, which also has a bid for Clearwire, which is also being bid on by Sprint, has now refocused on its offer for Clearwire, raising it substantially above its competitor's offer. The news has various stock moving in various directions, with Clearwire shareholders the latest winners. If you are trying to play this acquisition merry-go-round, good luck because -- like this paragraph -- the story is all over the place.
- [By Alex Planes]
The company's latest earnings report brought nods of approval from Fool contributor Michael Lewis, who pointed out strong earnings and strong growth in Latin America as key reasons why DIRECTV is set to outpace competitor DISH Network (NASDAQ: DISH ) , which has been a little distracted with its efforts to buy two debt-laden telecom companies. Neither company has a particularly light debt load, but expanding into a dramatically different (but no less cash-hungry) business could trip DISH up and give DIRECTV the opening it needs to take some of DISH's market share.
- [By Anders Bylund]
DISH Network (NASDAQ: DISH ) dropped its $25.5 billion bid for Sprint and then abandoned the $6.3 billion offer to buy Clearwire. That leaves Japan-based wireless operator Softbank unopposed in its quest to own Sprint, which in turn lost its only challenger for Clearwire ownership. Sprint shareholders have already approved the Softbank merger. It's only a matter of time and formalities before the Sprint-Clearwire bundle lands in Japanese hands.
Top 5 Media Stocks To Invest In Right Now: Gannett Co. Inc. (GCI)
Gannett Co., Inc. operates as a media and marketing solutions company in the United States and internationally. Its Publishing segment publishes 83 U.S. daily newspapers with affiliated online sites, including USA TODAY, a national, general-interest daily newspaper; USATODAY.com; USA WEEKEND, a magazine supplement for newspapers; Clipper Magazine, a direct mail advertising magazine; bi-weekly Nursing Spectrum and NurseWeek periodicals; and military and defense newspapers. This segment also includes 17 paid-for daily newspapers; approximately 200 weekly newspapers, magazines, and trade publications; and approximately 600 non-daily publications, as well as involves in commercial printing, newswire, marketing, and data services operations. The company?s Digital segment owns and operates CareerBuilder, an employment Web site, which offers online recruitment and career advancement services for employers, employees, recruiters, and job seekers; ShopLocal, which provides multicha nnel shopping and advertising services; Planet Discover, which offers hosted search and advertising services; PointRoll, which provides digital marketing services and technology; and Schedule Star, which offers scheduling solution for high school athletic departments. Its Broadcasting segment operates 23 television stations and affiliated Web sites, which produce local programming, such as news, sports, and entertainment programming. This segment also includes Captivate Network, a national news and entertainment network that delivers programming and full-motion video advertising on video screens located in elevators of office towers and select hotel lobbies in North America. The company has strategic business relationships with online affiliates, including Classified Ventures, ShopLocal.com, Topix, and Metromix LLC, as well as strategic marketing agreement with Microsoft. Gannett Co., Inc. was founded in 1906 and is headquartered in McLean, Virginia.
Advisors' Opinion:- [By John Mitchell]
Gannett (NYSE: GCI ) and the Tribune Co. (NASDAQOTH: TRBAA ) , two companies that publish daily newspapers, have announced combined layoffs of 1,000 positions (not all in the newsroom). News magazines are feeling the same pinch. According to a recent Gallup poll, only 9% of adults get their news from print sources, with news magazines scoring the lowest. The Pew news study as early as 2010 listed online news as the primary source for 39% of adults. �One of Time's biggest competitors, Newsweek, ended its paper publication in early 2013 in favor of an online edition only.
- [By Douglas A. McIntyre]
Traditional media sites did unusually well, given that they are not the core products of their parent companies. Broadcaster CBS (NYSE: CBS) was in 9th place at 80.9 million unique visitors in November. Comcast NBCUniversal was 14th place with 64.4 million. Gannett (NASDAQ: GCI) sites were 16th at 57 million. Viacom had 54.3 million, and ESPN 38.7 million.
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