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ViacomCBS, Discovery Defy Analysts With Perch Atop S&P 500
- Streaming optimism fueled 40% gains in both stocks in 2021
- Fears of rally outpacing potential has prompted downgrades
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Media stocks ViacomCBS Inc. and Discovery Inc. are two of the best performers on the S&P 500 Index this year thanks to expectations that their late entrance into the streaming-video industry will boost revenue.
Since the end of July, the traditional media companies have more than doubled compared with a 20% gain in the S&P 500 Index. They are also up more than 40% this year, making them among the top three performers in the benchmark and even surpassing industry giant Netflix Inc. as investors seek continued exposure to streaming services favored by stuck-at-home consumers. ViacomCBS shares rose as much as 1.6% on Tuesday, while Discovery shares edged higher by less than 1%.