Jason Bazinet: Last News

Old habits die hard. So Warner Bros. Discovery’s CEO David Zaslav just sat down with Paramount Global chief executive Bob Bakish to talk about merging, and the media business yet again confronted the possibility of a spasm of mega-deals reshaping the landscape.

The days of Warner Bros. Discovery cutting content for tax purposes are over, according to CFO Gunnar Wiedenfels.

Tech stocks and the beleaguered Nasdaq jumped today in a rally led by streamers Spotify, Netflix and Roku. All have seen their shares pummeled, with Netflix in particular being hit by disappointing subscriber numbers last quarter and Spotify embroiled in a Joe Rogan controversy.

Todd Spangler NY Digital EditorNetflix and Spotify shares both popped Monday after Citi analysts upgraded both stocks to buy ratings, saying the market is undervaluing their longer-term upside.Shares of both companies climbed in early trading Monday, with Netflix up more than 6% and Spotify up more than 5%.In the previous 30 days, Netflix shares had slumped 32% and Spotify dropped 26% on investor concerns over slowing streaming subscriber growth. The selloff “suggests prevailing equity values don’t assume material sub growth or improving subscriber economics beyond 2023,” the Citi team led by Jason Bazinet wrote in a research note in upgrading the stocks from “neutral” to “buy.”“While Netflix and Spotify may see more modest sub growth, we see other top-line vectors,” the analysts wrote.

Todd Spangler NY Digital EditorShares of Spotify took a hit after analysts at Citi downgraded the stock because the audio-streaming giant hasn’t shown “any material benefit” from its $800 million-plus investment in podcasting content and tech.Spotify’s stock price fell more than 5% Friday in morning trading, outpacing smaller declines in the broader market.

Dade Hayes Finance EditorRoku stock rose 11% to near an all-time high after Citibank analyst Jason Bazinet initiated coverage of the streaming firm with a “buy” rating and an optimistic thesis.Netflix shares also jumped 10% on a Piper Sandler report indicating a high degree of subscriber loyalty. They entered the final hour of the trading day at about $538 a share.Roku shares, which have seen volatility in 2020 after beginning the year at $137.10, were at $164, within sight of their all-time high of $176.55.The streaming gains stood out during a trading session where overall stocks were only mildly in positive territory.