Entertainment and media stocks posted strong gains in morning trade on Tuesday, outperforming broader markets amid a spate of third-quarter results.
YouTube parent Alphabet is up next and is expected to report quarterly earnings after the market close. Shares of the search engine and social media giant rose $1.27, or 1.2%, to $103.79.
The gains came ahead of earnings results despite some dovish comment and cuts to the stock’s price targets — the price Wall Street analysts expect the stock will be priced within the next year.
“Sentiment across the internet sector remains cautious,” wrote JPMorgan analyst Doug Anmuth last week as he cut his price target to $136 from $140. Growth is slowing for several companies as competition intensifies, and investors are also concerned about a possible recession.
Meta, the rebranded parent company of Facebook, Instagram and WhatsApp, was also in the green, up $4.48, or 3.5%, to $134.20 in late morning trading. Meta reports Wednesday after the market close. Shares are also trending higher despite multiple price target cuts.
The Dow Jones Industrial Average was up about 0.6% to 31,694.18, while the S&P 500 was up 1% to 3,835.40. The tech-heavy Nasdaq rose 1.5% as anticipation grew for reports from Silicon Valley’s big companies.
Netflix, which reported strong third-quarter subscriber gains last week, rose $11.92, or 4.2%, to $294.37. The stock was upgraded to outperform from neutral by Daiwa analyst Satoshi Tanaka, with a price target of $300, the latest positive response from Wall Street analysts since the earnings report.
Shares in streamer Roku rose $2.38, or 4.7%, to $53. Apple, which announced on Monday it has increased prices for streaming music and TV, rose $1.34 to $150.79, while Disney rose $1.37 to $103.09. Apple will release its third-quarter results on Thursday, and Disney is expected to release its financials on November 8.
Amazon was among the only streaming companies in the red, losing 18 cents to $119.64. The New York Post reported that the web giant froze the hiring of its lucrative head of web services on Thursday.
Warner Bros Discovery was also slightly down, giving up 5 cents to $13.13. The company reported that it would pay up to $4.3 billion in pre-tax restructuring costs following the merger of WarnerMedia and Discovery Inc. The company reported Nov. 1.
Cinemark Holdings Inc., which reports Thursday before the market open, gained 30 cents, or 3.2%, to $9.97. Shares of the theater chain are popular with day traders, as is rival AMC Entertainment, which is up 41 cents, or 6.5%, to $6.77. AMC reports Nov. 7.