Many Hollywood Stocks Underperform Broader Market in First Half of Year

Media and entertainment sector stocks are down at the mid-year mark, with many posting bigger drops than the 20 percent fall in the broader-based S&P 500 stock index.

A tough first half of the year for U.S. media stocks has come to a merciless end.

Stock sell-offs and analyst downgrades have been a regular feature of the year to date for media and entertainment giants. And Netflix’s surprise first-quarter subscriber decline has only raised questions about whether broader Hollywood’s streaming pivot will pay off over time.

And nearer term — amid the industry’s unceasing structural shift to ubiquitous streaming TV platforms — inflation-induced recession fears have led to worries about a hit to advertising revenue and speculation about how many online video-on-demand subscriptions consumers will pay for at the same time.

So no surprise most Hollywood sector stocks are down at the mid-year mark, with many posting bigger drops than the 20 percent fall in the broader-based S&P 500 stock index. A rare gainer in the media space is sports entertainment powerhouse WWE, which is up 25.5 percent year-to-date.

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