Kids are back in the classroom and more people are working in offices. As autumn deepens, business trips seem to be in full swing. A full return to normalcy leaves busy families across the country with less free time, but it’s important to take the time to unplug. Or, if you’re like many consumers who bought big-screen TVs during the pandemic, that’s fine too.
Better box office in 2022, still lagging pre-pandemic totals
Source: IMDbPro
After a strong summer box office season, it turns out that Netflix (NASDAQ:) remains king for the rest of the year.
Netflix Leads Film Releases for Remaining Years
Source: Wall Street Horizon
Our data reveals that the California-based company with a $97 billion market cap continues to dominate the pop culture scene. The streaming giant has also had a track record of increasing Academy Award nominations in recent years, and while the film industry continues to move toward filming at home rather than in theaters, the stock is likely to see his share price in 2022 so far. By the way, he’s down 63%.
Netflix’s Share Drops More Than 60% In 2022 Despite Dominating U.S. Movie Market
Source: Stockcharts.com
Upon contraction, the communications services sector was the worst performing segment of the market year-to-date. Severe declines in Meta Platforms (NASDAQ:), Alphabet (NASDAQ:), The Walt Disney Company (NYSE:), and Charter Communications (NASDAQ:) have weighed on much of Tech Media Telecom’s growth. (TMT) US stock market niche.
The sector’s Telecom Services Select Sector SPDR® Fund (NYSE:) is down nearly a third in 2022.
Year-to-date sector performance: telecom services lead market decline
Source: Stockcharts.com
Two industry conferences for earnings season
First up is the UiPath Forward 5 2022 gathering in Las Vegas later this month. The Digital Transformation event, September 27-29, will bring together executives from many of his TMT companies to provide updates and insights on the future of innovation in technology and robotics.
Next up is the Edge Computing Expo in California on October 5-6. Big Data, Internet of Things and Digital Transformation are some of the key topics of this technical conference. Telecom service heavyweights including Netflix, Amazon.com (NASDAQ:) and AT&T (NYSE:) are expected to attend.
Following the conference season comes the all-important third quarter earnings period, which begins in mid-October. The horse that leads the race for the most movies in the rest of the year is also the first to make the result.
Will the Bears finally cool off?
Netflix has had a surprising stock price response to earnings this year. After reporting better-than-expected EPS numbers in January, the stock plunged 22%, and since April, the stock has plummeted again. Although early, the options market is pricing in more than 10% share price volatility related to earnings, centered around the unconfirmed Oct. 18 third-quarter reporting date.
On the plus side, ahead of the new repurchase tax that will start on January 1, 2023, the company’s potential growth in a market where current equity valuations are significantly lower than they were a year ago. Watch out for stock buyback announcements.
Expect fireworks across the sector this season as volatility continues to rise. Following Netflix’s numbers, AT&T, Comcast (NASDAQ:), Amazon, Warner Bros. Discovery (NASDAQ:) and Roku (NASDAQ:) have earnings dates in late October.
Conclusion
Q4 Cheers to big movie companies? You, the investor, will be the critic. To stay ahead of volatility, it’s important to be armed with accurate, forward-looking corporate event data. As with many sectors, the pandemic is reshaping consumer behavior and some new entrants are dominating the entertainment industry. Staying on top of the latest trends is critical to managing risk.