Time Warner Rises as Credit Suisse Sees 2016 Media Reboundby
Time Warner Inc. rose the most in 1 1/2 years after Credit Suisse predicted the media industry will rebound this year from a disappointing 2015.
Time Warner climbed 4.7 percent to $68.62 at the close and was the day’s second-best performing stock in the Standard & Poor’s 500 Index.
Sheikh said he expects media companies will be more cautious about licensing shows to streaming services like Netflix Inc., which has hurt their ratings and enticed more people to cancel their cable packages. He also predicted more consumers will sign up for Web-only channels offered by traditional media companies, like Time Warner’s HBO Now and CBS All Access, helping to make up for any lost revenue from so-called cord-cutters.
The stock rise comes after a challenging year for many media companies. Time Warner fell 24 percent last year. Fox, which gained 0.5 percent today to $26.72, sank 29 percent last year.