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Tag: Television Broadcasting

  • As Nvidia prepares to post results, these three Europe chip names are tipped for gains, JPMorgan says

    As Nvidia prepares to post results, these three Europe chip names are tipped for gains, JPMorgan says

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    As Nvidia prepares to publish its much-anticipated full-year results this Wednesday, analysts at JPMorgan say VAT Group, ASML Holding, and ASM International all offer the strongest prospects for investors seeking to cash in on an upturn in the market for microchips. 

    JPMorgan analysts led by Sandeep Deshpande explained that while the slump in the microchip market is now showing signs of improvement, certain segments of the market — including those that supply chips to the auto and industrial sectors — are improving more slowly than others.

    The market for memory chips is, meanwhile, giving off signals of a bumper recovery, with inventory levels for the microchips used in computer storage devices currently sitting at lower than average seasonal levels, they said in a note to clients that published Monday. 

    As such, those Europe-based semiconductor companies least exposed to the autos and industrial sectors, which have the highest exposure to the market for memory chips, are set to see the biggest benefits in the near term, said Deshpande and the team.

    Swiss company VAT Group
    VACN,
    +0.37%

    makes vacuum valves used in chip manufacturing, while Dutch firms ASML Holding
    ASML,
    -0.10%

    ASML,
    -1.73%

    and ASM International
    ASM,
    -2.13%

    both make the lithography machines used to manufacture semiconductors. 

    Shares in all three European companies are up significantly over the previous 12 months — VAT has gained 51%, ASML 43% and ASM 81%.

    Notably, all three European companies are all focused on making the equipment used to manufacture the advanced microchips used in electronic products, including smartphones and personal computers. In JPMorgan’s view, this puts them in an advantageous position to benefit from any recovery. 

    At the same time, those companies most exposed to the auto and tech industries, including German firm Infineon Technologies AG
    IFX,
    -0.96%

    and Swiss firm STMicroelectronics
    STM,
    -0.29%
    ,
    are set to continue trading at subdued levels — despite already being cheap — as the market remains challenging, they caution.

    Deshpande and the team noted that inventory levels for the chips used in the auto and industrial sectors currently sit at rates 38.7% higher than three-year seasonal averages in the fourth-quarter of 2023, marking a deterioration on the 31.1% rate in the third quarter of 2023.

    In contrast, inventory levels for memory chips improved significantly in the final three months of 2023, having fallen from rates 19% above seasonal averages in the third quarter to rates 1.7% below normal seasonal levels at the end of the fourth quarter of last year.

    For reference, ASML Holding, which was previously split off from ASM International in 1984 through a joint venture with Philips
    PHIA,
    -0.32%
    ,
    is currently the world’s sole manufacturer of the extreme ultraviolet lithography machines used to make the advanced chips used in the AI industry. 

    ASM International continues to design the wafer processing machines used to make microchips. VAT Group produces vacuum valves that are needed to manufacture high tech chips in sterile environments to ensure they are not exposed to outside particles.  

    Nvidia
    NVDA,
    -0.06%
    ,
    the world’s largest chip designer, will on Wednesday announce quarterly results, which investors are expected to pore over, seeking vital clues on the health of the global chip market amid much excitement around a possible AI driven boom. 

    Read: Nvidia’s earnings report could kill the momentum driving U.S. stocks higher, regardless of how it turns out.

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  • Disney, Fox and Warner Bros. team up to launch new sports streaming service

    Disney, Fox and Warner Bros. team up to launch new sports streaming service

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    Walt Disney Co.’s ESPN, Fox Corp. and Warner Bros. Discovery Inc. are teaming to create a joint sports streaming service.

    The as-yet unnamed service, which could be available as early as the fall and offer a sort of Hulu model for sports, comes amid an explosion in sports-streaming rights and audiences.

    The service would essentially be a skinny bundle of the companies’ linear channels, including ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS, ABC, Fox, FS1, FS2, BTN, TNT, TBS, truTV, as well as the ESPN+ streaming service.

    “The launch of this new streaming sports service is a significant moment for Disney
    DIS,
    +2.73%

    and ESPN, a major win for sports fans, and an important step forward for the media business,” Disney Chief Executive Bob Iger said in a statement late Tuesday. “This means the full suite of ESPN channels will be available to consumers alongside the sports programming of other industry leaders as part of a differentiated sports-centric service.”

    Added Warner Bros.
    WBD,

    CEO David Zaslav: “This new sports service exemplifies our ability as an industry to drive innovation and provide consumers with more choice, enjoyment and value and we’re thrilled to deliver it to sports fans.”

    Each company will own one-third of the platform, according to Disney, in a deal reminiscent of the original Hulu, which started off as a joint venture between ABC, Fox and NBCUniversal.

    The service will have a new brand with an independent management team, and will be available to bundle with Disney+, Hulu and Max subscriptions.

    “We’re pumped,” Fox
    FOX,
    +0.55%

    CEO Lachlan Murdoch said. “We believe the service will provide passionate fans outside of the traditional bundle an array of amazing sports content all in one place.”

    More details, including pricing, will be announced later.

    Prominently missing from the deal are Comcast Corp.
    CMCSA,
    -1.00%
    ,
    which owns NBCUniversal and its sports lineup that includes NFL football and the Olympics, and Paramount Global
    PARA,
    -0.21%
    ,
    which owns CBS — which carries the NFL and college football, among other sports.

    The new service will showcase thousands of high-profile sporting events and include all four major sports leagues — the NFL, NBA, MLB and NHL — as well as college football and basketball, golf, tennis, cycling, soccer and UFC.

    Shares of Disney were down 1% in extended trading Tuesday, while Fox shares jumped 6% and WBD gained 3%.

    Mike Murphy contributed to this report.

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  • NFL has ‘decided to rip off fans’ with playoff game on Peacock, congressman says

    NFL has ‘decided to rip off fans’ with playoff game on Peacock, congressman says

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    ‘You’ve decided to rip off fans by exclusively broadcasting tomorrow’s Chiefs vs. Dolphins wild-card game on Peacock. For the first time ever, fans will be forced to choose between signing up for yet another expensive streaming service or missing out on a major playoff game.’

    That was part of a letter that Rep. Pat Ryan penned to leaders of the NFL and NBC Sports lamenting that an NFL playoff game this weekend will be available via steaming only for the first time.

    “How much more profit do [NFL commissioner Roger] Goodell and NBC need to make at the expense of hard working Americans?” the New York Democrat’s letter went on to ask.

    He wrote: “Congress granted the NFL an antitrust exemption in its broadcast deals with the expectation that you wouldn’t use it to screw over fans. That was clearly a mistake.” 

    Peacock, a streaming service operated by Comcast’s
    CMCSA,
    -0.65%

    NBCUniversal, is one of several streaming platforms that now broadcast NFL games. Some of those services, like Amazon’s
    AMZN,
    -0.36%

    Prime Video, have exclusive rights to certain games, meaning there is no other option to watch on network or cable television, or through a cord-cutting live TV subscription. But while there have been NFL games available only on a streaming platform before, never before has it been a playoff game.

    Part of the reason that Ryan, along with many NFL fans, are upset that the Chiefs-Dolphins game is available exclusively on Peacock is that it’s been getting more expensive to watch the NFL in recent years — because, increasingly, games are not broadcast on network TV. In fact, the price to watch every NFL game this season for cord cutters was $1,603, not including the cost of internet service. 

    That commitment includes the cost of six streaming services and five username and password combinations. Those digital streaming services include Google’s
    GOOG,
    +0.40%

    GOOGL,
    +0.40%

    YouTube TV, NFL Sunday Ticket, Amazon Prime Video, Peacock, NFL+ and ESPN+
    DIS,
    +1.01%
    .

    And the NFL is reaping the rewards. A decade ago, the league made about $3 billion from its TV deals. But, through all of its broadcast deals today with both networks and streaming companies, it makes roughly $10 billion a year.

    Peacock has two plans: a $5.99-per-month subscription with ads, and another option for $11.99 a month that’s ad-free. While fans who live in the local broadcast areas of where the teams play (the media markets around Kansas City and Miami, in this case) will have the ability to watch the game on local TV, the rest of the country will have to pay for Peacock.

    According to the Wall Street Journal, NBC paid $110 million for Peacock’s exclusive NFL broadcast rights. 

    Many fans took to social media to vent their frustrations about having to buy another streaming service to watch an NFL game this weekend.

    Responding to the backlash, an NFL spokesperson said in a statement: “The NFL’s media strategy has been to make our games available in as many ways as possible to meet our fans where they spend their time. As streaming video becomes commonplace, we are increasingly expanding the digital distribution of NFL content while continuing a longstanding policy that all NFL games be shown on free, over-the-air television in the markets of the participating teams.”

    NBCUniversal did not respond to MarketWatch’s request for comment.

    Clermont, Fla., resident Calicia Landry, 53, has been a Dolphins fan for decades. Her family had season tickets during the historic 1972 season when the Dolphins went undefeated — the first and only time that has happened in NFL history.

    When asked if she will pay for Peacock to watch the game, Landry, whose town is in the Orlando, Fla., market, told MarketWatch that, despite Peacock’s cost of just $5, “it’s the principle now.”

    “I bought NFL Sunday Ticket already. I already pay for television service with DirecTV
    T,
    +1.54%
    .
    I had to have Prime to watch the Black Friday game,” she said. “It’s too much.”

    Read on: Here’s how much the major streaming services are set to cost are all the price increases

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  • Shari Redstone reportedly in talks to sell Paramount parent to Skydance

    Shari Redstone reportedly in talks to sell Paramount parent to Skydance

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    Media tycoon Shari Redstone is in talks to sell controlling interesting in Paramount parent National Amusements to media and entertainment company Skydance, Puck and the New York Times reported Sunday.

    On Friday, shares of Paramount Global Inc. rallied 13% after Deadline reported Skydance and private-equity firm RedBird Capital were kicking the tires on National Amusement, which has a 77% stake in Paramount.

    According to the Times, Redstone — the daughter of late Paramount CEO Sumner Redstone — has held talks with Skydance in recent weeks, though the Times said it was unclear if a deal would be reached.

    Skydance, which is led by David Ellison, son of Oracle founder Larry Ellison, is one of Hollywood’s top independent studios, and has produced Paramount blockbusters such as “Mission: Impossible — Dead Reckoning” and “Top Gun: Maverick.” RedBird is a financial backer of Skydance.

    A sale would be a major reversal for Redstone, who waged a bitter battle for control of the company in 2016, and who later led the effort to merge CBS Corp. and Viacom, which led to the creation of the current Paramount Global.

    Deadline had reported that Skydance would be more interested in Paramount’s IP and movie studio, and could look to sell its TV assets, including CBS.

    A deal could signal the start of a major shakeup across the media industry, as traditional TV companies are struggling to make money in the streaming age. Comcast Corp.
    CMCSA,
    -0.17%
    ,
    which owns NBCUniversal, could be looking to expand, while Warner Bros. Discovery
    WBD,
    +6.01%

    could be a potential seller. Disney
    DIS,
    +0.84%

    CEO Bob Iger recently floated the idea of selling ABC, but quickly walked that back.

    Paramount Global shares
    PARA,
    +12.11%

    have surged nearly 40% in the past month, but are still about flat year to date.

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  • Trump calls his four indictments ‘nonsense’ during Tucker Carlson interview airing opposite the GOP debate

    Trump calls his four indictments ‘nonsense’ during Tucker Carlson interview airing opposite the GOP debate

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    ‘I got indicted four times, all trivia, all nonsense.’

    That was former President Donald Trump speaking to former Fox News host Tucker Carlson in a pre-taped interview that was posted just a few minutes before the Republican presidential debate kicked off Wednesday night. 

    The wide-ranging chat that ran roughly 45 minutes saw Trump and Carlson taking shots at Trump’s legal troubles, his GOP and Democratic rivals, cable news networks and more. They did not get into pocketbook issues like inflation, Social Security or student loan debt.

    Trump confirmed over the weekend that he was skipping the first GOP primary debate for the 2024 race because “the public knows who I am,” and he had little to gain from joining his rivals on stage.

    He said something similar during the Carlson interview. “We’re doing this interview, but we’ll get bigger ratings using this crazy forum that you’re using than probably the debate,” Trump mused. “I think cable [viewership] is down because it’s lost credibility.”

    It remains to be see what sort of ratings the Fox News debate will pull in from the live broadcast, from streams and from later viewings, of course. Just before 10 p.m. Eastern, the clip posted to Tucker Carlson’s feed on X.com was approaching 75 million views.

    Read more: Non-Trump Republican presidential candidates to try for ‘breakout moment’ in this week’s debate

    Trump had teased on his Truth Social platform ahead of the debate that “sparks will fly,” and the sitdown with Carlson at the former president’s private golf club in Bedminster, N.J. And Carlson’s wide-ranging interview topics were designed with soundbites in mind, such as asking Trump about Jeffrey Epstein, or whether another civil war is brewing in the U.S. — as opposed to many issues top of mind for voters, such as high inflation.

    Tucker Carlson speaks with former President Donald Trump during a pre-taped interview, which was posted to X at the same time as the first Republican presidential debate for the 2024 primary on Wednesday.


    “Tucker on X” via X

    Some highlights from the Trump & Tucker show:

    On why Trump skipped the Fox News debate:

    “Do I sit there for an hour or two hours, whatever it’s going to be, and get harassed by people that shouldn’t even be running for president? Should I be doing that?” he asked, especially since he’s such a frontrunner in the polls, so far.

    “I just felt it would be more appropriate not to do the debate. I don’t think it’s right to do it if you’re leading by 50, 60, one poll I’m leading by 70 points,” he said.

    And he threw in a dig to Fox News, calling it “A network that isn’t particularly friendly to me.” 

    He also said the network made “a terrible move” in firing Carlson.

    On the state of the nation:

    “We have a country that is very fragile right now,” Trump said, arguing he’s a candidate for the left, the right and independents, alike.

    “You have great people in the Democrat party, you have great people that are Democrats. Most people in the country are fantastic,” he said, “and I’m representing everybody, I’m not just Republican or conservative, I represent everybody, I’m the president of everybody.”  

    And on his legal issues:

    “The four indictments, and maybe there will be more, I don’t know,” he said. But he said his poll numbers and fundraising keep going up after each indictment because, “I think the people in this country don’t get enough credit for how smart they are. They get it, they really get it … I got indicted four times, all trivia, all nonsense. Bullshit, it’s all bullshit.”

    And catch up to what his GOP rivals were getting into by following MarketWatch’s debate live blog here.

    Carlson ended the interview by asking Trump whether the country is headed for civil war or open conflict. Trump called Jan. 6 “an interesting day,” and said he didn’t know. “There’s a level of passion that I’ve never seen. There’s a level of hatred that I’ve never seen. And [that’s] probably a bad combination.”

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  • Disney to Significantly Raise Prices of Disney+, Hulu Streaming Services

    Disney to Significantly Raise Prices of Disney+, Hulu Streaming Services

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    Disney to Significantly Raise Prices of Disney+, Hulu Streaming Services

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  • Disney posts smaller streaming loss, will hike prices for Disney+ and Hulu

    Disney posts smaller streaming loss, will hike prices for Disney+ and Hulu

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    Walt Disney Co.’s stock dipped in after-hours trading Wednesday after the company posted mixed quarterly results roughly in line with analysts’ expectations amid a cost-cutting frenzy.

    Separately, Disney said it is hiking prices on almost all of its streaming packages in an aggressive push to boost its bottom line. Commercial-free Disney+ will cost $13.99 per month, a 27% increase, beginning Oct. 12. Ad-free Hulu will increase 20% to $17.99 per month. A new Disney+ and Hulu Bundle ad-free plan launches Sept. 6 for $19.99.

    Read more: Disney is raising prices on Hulu and Disney+ again. Here’s how much you’ll soon pay.

    The media giant
    DIS,
    -0.73%

    reported a fiscal third-quarter loss of $460 million, or 25 cents a share, mostly because of restructuring and impairment charges. After adjusting for restructuring costs and other effects, Disney reported earnings of $1.03 a share. Revenue grew 4% to $22.3 billion from $21.5 billion a year ago.

    Analysts surveyed by FactSet had on average expected adjusted earnings of 96 cents a share on revenue of $22.5 billion. Disney shares declined about 3% in after-hours trading immediately following the release of the report, after dropping 0.7% to $87.52 in the regular session.

    “Our results this quarter are reflective of what we’ve accomplished through the unprecedented transformation we’re undertaking at Disney to restructure the company, improve efficiencies and restore creativity to the center of our business,” Disney Chief Executive Robert Iger said in a statement announcing the results. Disney is in the midst of a $5.5 billion cost-cutting plan overseen by Iger, who returned to the CEO position to right the ship in late 2022.

    Direct-to-consumer (DTC) sales, which includes streaming services and some international products, hauled in $5.5 billion, compared with analysts’ forecast of $5.7 billion on average and last year’s total of $5.05 billion. The division did reduce its quarterly losses to $512 million, compared with $1.06 billion a year ago. Analysts were expecting a loss of $758 million.

    Still, the company has lost more than $10 billion in its DTC segment since launching Disney+ in late 2019. Disney had told investors for three years it expects Disney+ to be profitable by September 2024. During a conference call with analysts late Thursday, Iger said Disney is “actively exploring” options to crack down on account sharing when the company updates subscriber agreements later this year and will “roll out tactics to drive monetization” in 2024.

    The company’s iconic theme parks around the world and product-sales business increased to $8.3 billion in revenue from $7.4 billion a year ago. The average analyst estimate was $8.1 billion.

    Disney’s largest business segment, media and entertainment distribution, raked in $14 billion during the quarter, down from $14.1 billion a year ago. Analysts on average predicted $14.3 billion, according to FactSet.

    Disney’s television networks generated sales of $6.7 billion, while analysts’ average estimates called for $6.74 billion. Content sales and licensing, a category that includes Disney’s film business, reported revenue of $2.1 billion, compared with analysts’ expectations of about $2.15 billion.

    In the weeks leading up to Disney’s results, there has been a whirlwind of fear and doubt over the current state of the company’s streaming services — including ESPN — as well as linear-TV ad sales, the actors’ and writers’ strikes that have shut down Hollywood, Disney’s theme parks and its legal and political battle with Florida Gov. Ron DeSantis.

    Front and center is the health of Disney+ as it battles streaming rivals like Apple Inc. 
    AAPL,
    -0.90%
    ,
     Netflix Inc. 
    NFLX,
    -2.14%
    ,
     Amazon.com Inc. 
    AMZN,
    -1.49%
    ,
     Warner Bros. Discovery Inc. 
    WBD,
    -2.15%

    and Comcast Corp.
    CMCSA,
    -0.26%
    .
    Macquarie Equity Research analyst Tim Nollen believes in Disney’s streaming services over the long term but said “we see too many near-term issues to overcome to support a more constructive view.”

    Disney+ had 146.1 million subscribers globally, 7% fewer than the 157.8 million it had in the previous quarter. The decline mostly came from India, where Disney lost the rights to stream a popular cricket league last year.

    Disney and DeSantis, who is running for the 2024 Republican presidential nomination, have filed dueling lawsuits that stem from the company’s criticism last year of a Florida law that bans classroom discussion of sexuality and gender identity with younger children. Earlier this week, a group of mostly former Republican high-level government officials called DeSantis’s takeover of Disney World’s governing district “severely damaging to the political, social, and economic fabric” of Florida.

    The somber vibe prompted Deutsche Bank analysts on Tuesday to lower their price target on Disney shares 8% to $120, with “lower advertising revenue, underperformance at the box office, and lighter parks attendance in Orlando” chief among their concerns.

    “This is Iger’s most important earnings call since returning to Disney late last year. He came in with a punch list that was too long to realistically knock off in two years,” Rick Munarriz, an analyst at the Motley Fool, said in an email. “Now the board has given him four years, and every word he uses during Thursday afternoon’s earnings call has to carry some serious heft.”

    Disney’s call was to start at 4:30 p.m. Eastern.

    Shares of Disney have inched up 0.7% this year, while the S&P 500
    SPX
    has climbed 16%.

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  • Pence qualifies for first Republican debate: Here’s who else will be on stage.

    Pence qualifies for first Republican debate: Here’s who else will be on stage.

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    Former Vice President Mike Pence has become the eighth, and perhaps final, candidate to qualify for the first Republican presidential primary debate, setting up a possible prime-time clash with Donald Trump.

    That face-off with Trump is not certain, however, because the former president has not yet confirmed whether he will take part in the event.

    Several other GOP hopefuls, meanwhile, have also qualified for the debate. Here’s a look at details including who’ll be on stage and when and where the debate will be held.

    When and where is the debate?

    The first debate of the GOP primary season will be held Aug. 23 in Milwaukee, the same city that will host the party’s 2024 convention. The two-hour debate is scheduled to start at 9 p.m. Eastern time and is being hosted by Fox News.

    Fox News parent Fox Corp.
    FOX,
    +5.56%

    FOXA,
    +5.59%

    and News Corp
    NWS,
    +0.73%

    NWSA,
    +0.84%
    ,
    parent of MarketWatch publisher Dow Jones, share common ownership.

    Besides Pence, who has qualified?

    North Dakota Gov. Doug Burgum, former New Jersey Gov. Chris Christie, Florida Gov. Ron DeSantis, former U.N. Ambassador Nikki Haley, entrepreneur Vivek Ramaswamy, South Carolina Sen. Tim Scott and Trump have all met the debate requirements.

    Other GOP hopefuls including former Rep. Will Hurd of Texas and Miami Mayor Francis Suarez have not yet made the cut.

    Now read: Here are the Republicans running for president in 2024, before their first debate later this month

    Also read: Mike Pence says inflation is 16%, but CPI is 3%. This is his logic.

    What are the requirements for the Milwaukee debate?

    For the first debate, a candidate needs to have at least 1% support in three high-quality national polls or in a mix of state and national polls and must have secured at least 40,000 unique donors.

    Getting on stage for the second debate will be tougher. That contest, scheduled for Sept. 27 at the Ronald Reagan Presidential Library in California, will require candidates to have at least 3% support in two national polls, or in one national poll as well as two polls from four of the early-voting states. Candidates must also have at least 50,000 unique donors, as the Associated Press has reported.

    Now read: Republican Party raising qualification bar for second presidential primary debate

    What has Trump said about attending the debate?

    Playing his cards close to the vest, the former president is asking his supporters whether he should be in Milwaukee on Aug. 23. In an email on Saturday, Trump said he thinks it’s “sort of foolish” for him to attend, given his outsized polling lead.

    “Hopefully, former President Trump has the courage to show up,” Pence’s communications adviser Devin O’Malley said in a statement on Tuesday.

    Read next: Pence, Trump attorney offer conflicting claims over what Trump said ahead of Jan. 6

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  • Paramount’s stock roars higher after earnings beat and planned sale of Simon & Schuster

    Paramount’s stock roars higher after earnings beat and planned sale of Simon & Schuster

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    Paramount Global shares were popping in Monday’s after-hours action after the media giant topped expectations with its latest quarterly financials.

    The company posted a second-quarter net loss of $299 million, or 48 cents a share, whereas it posted net income of $419 million, or 62 cents a share, in the year-earlier period.

    Paramount
    PARA,
    +2.94%

    posted 10 cents in adjusted diluted earnings from continuing operations, compared with 64 cents a year before. Analysts tracked by FactSet were modeling breakeven performance on adjusted earnings.

    “In [the second quarter], we maintained our focus on scaling our streaming platforms, maximizing our traditional business, and building a sustainable business model that will return the company to significant earnings growth in 2024,” Chief Executive Bob Bakish said in a shareholder presentation.

    Don’t miss: Roku faces risk from Hollywood strikes — but Roku City might be able to help

    Shares of the media giant were rallying 5% in Monday’s extended session.

    Revenue slipped to $7.62 billion from $7.80 billion, while analysts were expecting $7.44 billion. Revenue for the Paramount+ streaming service was up 47%, while total direct-to-consumer advertising revenue grew by 21%.

    “And despite the environment, TV Media continued to contribute significant earnings,” Bakish said. “As we look forward, we will continue to be guided by our content-first approach and seek to maximize its value across platforms and revenue streams, while also operating with the utmost efficiency through this year of peak streaming investment.”

    Read: Streaming nirvana is about to become more expensive — and offer less content

    The direct-to-consumer business lost $424 million in the second quarter on the basis of adjusted operating income before depreciation and amortization.

    Separately, Paramount announced on Monday that KKR will purchase its Simon & Schuster publishing business for $1.62 billion in an all-cash deal.

    “The proceeds will give Paramount additional financial flexibility and greater ability to create long-term value for shareholders, while also delevering our balance sheet,” Bakish said in a release.

    Disney earnings preview: How much magic is left in the kingdom?

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  • Palo Alto, Dish Network, C3.ai, EPAM Systems, and More Stock Market Movers

    Palo Alto, Dish Network, C3.ai, EPAM Systems, and More Stock Market Movers

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    These Stocks Are Moving the Most Today: Palo Alto, Dish Network, C3.ai, EPAM Systems, and More

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  • Elon Musk says he’s hired new CEO for Twitter; is it NBCUniversal’s Linda Yaccarino?

    Elon Musk says he’s hired new CEO for Twitter; is it NBCUniversal’s Linda Yaccarino?

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    Twitter Chief Executive Elon Musk says he’s found a new CEO to run Twitter and its parent company, X Corp., and “she” starts soon.

    “Excited to announce that I’ve hired a new CEO for X/Twitter. She will be starting in ~6 weeks!” Musk tweeted Thursday afternoon. “My role will transition to being exec chair & [chief technology officer], overseeing product, software & sysops.”

    Musk did not offer any clues as to the identity of Twitter’s incoming CEO, but late Thursday, the Wall Street Journal reported Linda Yaccarino, NBCUniversal’s head of advertising, was in talks to become the CEO.

    Yaccarino has worked at Comcast’s
    CMCSA,
    +1.28%

    NBCU for more than a decade, and has been an industry advocate in finding better ways to measure advertising’s effectiveness, according to the Journal.

    Yaccarino oversees global, national and local ad sales, partnerships, marketing, ad tech, data, measurement and strategic initiatives, according to her bio, which says she and her team have generated more than $100 billion in ad sales.

    “She knows metrics in advertising, and has played in different media,” Timothy Hubbard, assistant professor of management at the University of Notre Dame’s Mendoza College of Business, said in an interview. “I don’t know much about her, but she can balance Musk somewhat with her flexibility in advertising.”

    She and Musk appeared in a keynote conversation at a conference in Miami last month, according to Dateline, before NBCU and Twitter inked a major ad pact for the 2024 Olympics.

    Wedbush analyst Dan Ives said the move is good for the stock of Tesla Inc.
    TSLA,
    +2.10%
    ,
    where Musk is also CEO.

    “Musk stepping down as Twitter CEO sooner than thought is clearly good news overall for Tesla investors,” Ives said on Twitter. “Less time focused on Twitter platform and more time around Tesla SpaceX…balancing act too difficult and needed to make this move sooner rather than later.”

    In a note, Ives added: “With the tweet this afternoon, Musk’s reign as CEO of Twitter has finally come to an end and thus will be a positive for Tesla’s stock starting to finally remove this lingering albatross from the story,” and maintained Tesla’s outperform rating.

    Tesla shares advanced 1.6% in after-hours trading.

    After Musk acquired the social media giant for $44 billion, he posted a Twitter poll in December that asked if he should step down as CEO. A majority (57%) said yes, and he responded saying: “I will resign as CEO as soon as I find someone foolish enough to take the job! After that, I will just run the software & servers teams.”

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  • Elon Musk says he’s hired new CEO for Twitter; is it NBCUniversal’s Linda Yaccarino?

    Elon Musk says he’s hired new CEO for Twitter; is it NBCUniversal’s Linda Yaccarino?

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    Twitter Chief Executive Elon Musk says he’s found a new CEO to run Twitter and its parent company, X Corp., and “she” starts soon.

    “Excited to announce that I’ve hired a new CEO for X/Twitter. She will be starting in ~6 weeks!” Musk tweeted Thursday afternoon. “My role will transition to being exec chair & [chief technology officer], overseeing product, software & sysops.”

    Musk did not offer any clues as to the identity of Twitter’s incoming CEO, but late Thursday, the Wall Street Journal reported Linda Yaccarino, NBCUniversal’s head of advertising, was in talks to become the CEO.

    Yaccarino has worked at Comcast’s
    CMCSA,
    +1.28%

    NBCU for more than a decade, and has been an industry advocate in finding better ways to measure advertising’s effectiveness, according to the Journal.

    “She knows metrics in advertising, and has played in different media,” Timothy Hubbard, assistant professor of management at the University of Notre Dame’s Mendoza College of Business, said in an interview. “I don’t know much about her, but she can balance Musk somewhat with her flexibility in advertising.”

    Wedbush analyst Dan Ives said the move is good for the stock of Tesla Inc.
    TSLA,
    +2.10%
    ,
    where Musk is also CEO.

    “Musk stepping down as Twitter CEO sooner than thought is clearly good news overall for Tesla investors,” Ives said on Twitter. “Less time focused on Twitter platform and more time around Tesla SpaceX…balancing act too difficult and needed to make this move sooner rather than later.”

    In a note, Ives added: “With the tweet this afternoon, Musk’s reign as CEO of Twitter has finally come to an end and thus will be a positive for Tesla’s stock starting to finally remove this lingering albatross from the story,” and maintained Tesla’s outperform rating.

    In December, Musk posted a Twitter poll asking if he should step down as CEO. A majority said yes, and he responded saying: “I will resign as CEO as soon as I find someone foolish enough to take the job! After that, I will just run the software & servers teams.”

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  • Disney to increase price of ad-free streaming again, add Hulu to Disney+ and remove some content

    Disney to increase price of ad-free streaming again, add Hulu to Disney+ and remove some content

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    Walt Disney Co. will increase the cost of ad-free Disney+ subscriptions this year while adding Hulu content to the Disney+ streaming service and removing some shows from streaming entirely, executives announced Wednesday.

    Disney
    DIS,
    -1.02%

    executives have been making changes to their streaming strategy in an attempt to lose less money from offering its content directly to consumers over the internet. The company launched an ad-supported version of Disney+ in the U.S. and other countries late last year, and increased the cost of its ad-free offering at the same time, while increasing costs of other services.

    “Pricing changes we’ve already implemented have proven successful, and we plan to set a higher price for our ad-free tier later this year to better reflect the value of our content offerings,” Chief Executive Robert Iger said in a conference call Wednesday related to Disney’s quarterly earnings. “As we look to the future, we will continue optimizing our pricing model to reward loyalty and reduce churn, to increase subscriber revenue for the premium ad-free tier, and drive growth of subscribers who offer the lower-cost ad supported option.”

    Full earnings coverage: Disney stock falls as Disney+ subscribers decline amid push to lose less money in streaming

    Iger returned as chief executive of Disney late last year, and has been overseeing the evaluation of Disney’s streaming strategy. One of the biggest question marks is Hulu, of which Disney now owns two-thirds, with the option to buy the remaining interest from Comcast Corp.
    CMCSA,
    +0.61%

    as early as January.

    Iger, though, has been rethinking the path for Hulu since returning. In an interview with CNBC earlier this year, he intimated that Disney could choose to sell the streaming service instead of buying the remaining interest. In his first big move with the service since returning, Iger said Wednesday that Hulu content would roll into Disney+ in the U.S. later this year.

    “As a significant step toward creating a growth business, I’m pleased to announce that we will soon begin offering a one-app experience domestically that incorporates our Hulu content via Disney+,” Iger said in the conference call. “While we will continue to offer Disney+, Hulu and ESPN+ as stand-alone options, this is a logical progression of our [direct-to-consumer] offerings that will provide greater opportunities for advertisers while giving bundle subscribers access to more robust and streamlined content, resulting in greater audience engagement and ultimately leading to a more unified streaming experience.”

    Iger later clarified that the two apps will be combined only for those who subscribe to both.

    “On the integrated app experience that we announced today, that’s more consumers that have subscribed to both services for now,” he said. “So in other words, it’s taking what we call the dual bundle and putting it together in one experience, which is obviously good for consumers. Why have to close out one app and open another one?”

    For more: Disney is undergoing a ‘drastic evolution’ in streaming, and more changes could be afoot

    After a wave of new streaming services appeared in recent years to compete with Netflix Inc.
    NFLX,
    +0.99%
    ,
    media companies are looking to combine some of their offerings as consumers deal with a web of potential subscriptions. Paramount Global
    PARA,
    -4.11%

    plans to combine its Paramount+ and Showtime streaming services, and Warner Bros. Discovery
    WBD,
    -2.76%

    is planning to combine HBO Max with Discovery+ while renaming the service Max.

    When an analyst on Wednesday’s call suggested that Disney’s move revealed that Iger had decided to purchase the rest of Hulu, Iger responded by saying “it’s not really been fully determined what will happen in that regard.”

    “Where we are headed is for one experience that would have general entertainment and Disney+ content together for the reasons that I just described,” Iger said. “How that ultimately unfolds is to some extent in the hands of Comcast and in the hands of basically a conversation or a negotiation that we have with them. I don’t want to be in any way predictive in terms of when or how that ends up.”

    While adding Hulu content to Disney+, Disney will also remove some content from its streaming services, which will allow the company to save money that would be paid out as residuals for airing the content. Warner Bros. Discovery made similar moves as it looked to cut costs for its HBO Max streaming service last year.

    “We will be removing certain content from our streaming platforms, and currently expect to take an impairment charge of approximately $1.5 billion to $1.8 billion,” Chief Financial Officer Christine McCarthy said in the conference call, without elaborating further.

    For more: As streaming services cut costs, TV shows — and residuals — vanish

    Iger did elaborate on his vision for streaming in his second earnings report since returning to the company, laying out his general thoughts about the path forward for Disney’s streaming portfolio — which also includes ESPN+ and a version of Disney+ in India and other parts of Asia refereed to as Disney+Hotstar.

    “First, it’s critical we rationalize the volume of content we’re creating, and what we’re spending to produce our content. Second, our legacy platforms enable us to expand our audiences and often augment our potential streaming success while at the same time, allowing us to amortize our content costs across multiple windows,” he said. “We also need to strike the right balance between our local and global programming, as well as our platform and program marketing. Finally, we must continue calibrating our investments in specific markets.”

    Disney shares declined in after-hours trading Wednesday following the release of quarterly results, which showed a sequential decline in Disney+ subscribers. The stock has gained 16.4% so far this year, as the S&P 500 index
    SPX,
    +0.45%

    has gained 7.3%.

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  • Fox’s stock slides 4% on news Tucker Carlson is leaving the network

    Fox’s stock slides 4% on news Tucker Carlson is leaving the network

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    Tucker Carlson is leaving Fox News, according to a statement from the network on Monday that sent Fox shares down 4%.

    “FOX News Media and Tucker Carlson have agreed to part ways,” the company said in a terse statement. “We thank him for his service to the network as a host and prior to that as a contributor.”

    Carlson’s last program at the…

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  • NBCUniversal CEO Jeff Shell leaves company following misconduct investigation

    NBCUniversal CEO Jeff Shell leaves company following misconduct investigation

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    Jeff Shell, chief executive of Comcast Corp.’s NBCUniversal, abruptly left the company Sunday following an investigation into a complaint of inappropriate conduct.

    “We are disappointed to share this news with you,” Comcast CMCSA CEO Brian Roberts and President Mike Cavanaugh said in a statement. “We built this company on a culture of integrity. Nothing is more important than how we treat each other. You should count on your leaders to create a safe and respectful workplace. When our principles and policies are violated, we…

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  • Judge delays start of Fox News defamation trial until Tuesday

    Judge delays start of Fox News defamation trial until Tuesday

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    NEW YORK — The Delaware judge overseeing a voting machine company’s $1.6 billion defamation lawsuit against Fox News announced late Sunday that he was delaying the start of the trial until Tuesday. He did not cite a reason.

    The trial, which has drawn international interest, had been scheduled to start Monday morning with jury selection and opening statements.

    The case centers on whether Fox defamed Dominion Voting Systems by spreading false claims that the company rigged the 2020 presidential election to prevent former President Donald Trump’s reelection. Records produced as part of the lawsuit show that many of the network’s hosts and executives didn’t believe the allegations but aired them, anyway.

    Representatives for Dominion and for the two entities it’s suing — Fox News and its parent company, Fox Corp.
    FOX,
    -1.35%

    — did not immediately return requests for comment on the delay. In his statement, Delaware Superior Court Judge Eric Davis said only that the trial, including jury selection, would be continued until Tuesday and that he would announce the delay in court on Monday.

    That’s when Fox News executives and the network’s star hosts were scheduled to begin answering for their role in spreading doubt about the 2020 presidential election and creating the gaping wound that remains in America’s democracy.

    Jurors hearing the $1.6 billion lawsuit filed against Fox by Dominion Voting Systems would have to answer a specific question: Did Fox defame the voting machine company by airing bogus stories alleging that the election was rigged against then-President Donald Trump, even as many at the network privately doubted the false claims being pushed by Trump and his allies?

    Yet the broader context looms large. A trial would test press freedom and the reputation of conservatives’ favorite news source. It also would illuminate the flow of misinformation that helped spark the Jan. 6, 2021, insurrection at the U.S. Capitol and continues to fuel Trump’s hopes to regain power in 2024.

    Fox News stars Tucker Carlson and Sean Hannity and founder Rupert Murdoch are among the people who had been expected to testify.

    Barring a settlement, opening statements are now scheduled for Tuesday.

    “This is Christmas Eve for defamation scholars,” said RonNell Andersen Jones, a University of Utah law professor.

    If the trial were a sporting event, Fox News would be taking the field on a losing streak, with key players injured and having just alienated the referee. Pretrial court rulings and embarrassing revelations about its biggest names have Fox on its heels.

    Court papers released over the past two months show Fox executives, producers and personalities privately disbelieved Trump’s claims of a fraudulent election. But Dominion says Fox News was afraid of alienating its audience with the truth, particularly after many viewers were angered by the network’s decision to declare Democrat Joe Biden the winner in Arizona on election night in November 2020.

    Some rulings by the judge have eased Dominion’s path. In a summary judgment, Davis said it was “CRYSTAL clear” that fraud allegations against the company were false. That means trial time won’t have to be spent disproving them at a time when millions of Republicans continue to doubt the 2020 results.

    Davis said it also is clear that Dominion’s reputation was damaged, but that it would be up to a jury to decide whether Fox acted with “actual malice” — the legal standard — and, if so, what that’s worth financially.

    Fox witnesses would likely testify that they thought the allegations against Dominion were newsworthy, but Davis made it clear that’s not a defense against defamation.

    New York law protects news outlets from defamation for expressions of opinion. But Davis methodically went through 20 different times on Fox when allegations against Dominion were discussed, ruling that all of them were fully or partly considered statements of fact, and fair game for a potential libel finding.

    “A lawsuit is a little bit like hitting a home run,” said Cary Coglianese, law professor at the University of Pennsylvania. “You have to go through all of the bases to get there.” The judge’s rulings “basically give Dominion a spot at third base, and all they have to do is come home to win it.”

    Both Fox and Dominion are incorporated in Delaware, though Fox News is headquartered in New York and Dominion is based in Denver.

    Fox angered Davis this past week when the judge said the network’s lawyers delayed producing evidence and were not forthcoming in revealing Murdoch’s role at Fox News. A Fox lawyer, Blake Rohrbacher, sent a letter of apology to Davis on Friday, saying it was a misunderstanding and not an intention to deceive.

    It’s not clear whether that would affect a trial. But it’s generally not wise to have a judge wonder at the outset of a trial whether your side is telling the truth, particularly when truth is the central point of the case, Jones said.

    The lawsuit essentially comes down to whether Dominion can prove Fox acted with actual malice by putting something on the air knowing that it was false or acting with a “reckless disregard” for whether it was true. In most libel cases, that is the most difficult hurdle for plaintiffs to get past.

    Dominion can point to many examples where Fox figures didn’t believe the charges being made by Trump allies such as Sidney Powell and Rudolph Giuliani. But Fox says many of those disbelievers were not in a position to decide when to air those allegations.

    “We think it’s essential for them to connect those dots,” Fox lawyer Erin Murphy said.

    If the case goes to trial, the jury will determine whether a powerful figure like Murdoch — who testified in a deposition that he didn’t believe the election-fraud charges — had the influence to keep the accusations off the air.

    “Credibility is always important in any trial in any case. But it’s going to be really important in this case,” said Jane Kirtley, director of the Silha Center for the Study of Media Ethics and the Law at the University of Minnesota.

    Kirtley is concerned that the suit may eventually advance to the U.S. Supreme Court, which could use it as a pretext to weaken the actual malice standard that was set in a 1964 decision in New York Times Co. v. Sullivan. That, she feels, would be disastrous for journalists.

    Dominion’s lawsuit is being closely watched by another voting-technology company with a separate but similar case against Fox News. Florida-based Smartmatic has looked to some rulings and evidence in the Dominion case to try to enhance its own $2.7 billion defamation lawsuit in New York. The Smartmatic case isn’t yet ready for trial but has survived Fox News’ effort to get it tossed out.

    Many experts are surprised Fox and Dominion have not reached an out-of-court settlement, though they can at any time. There’s presumably a wide financial gulf. In court papers, Fox contends the $1.6 billion damages claim is a wild overestimate.

    Dominion’s motivation may also be to inflict maximum embarrassment on Fox with the peek into the network’s internal communications following the election. Text messages from January 2021 revealed Carlson telling a friend that he passionately hated Trump and couldn’t wait to move on.

    Dominion may also seek an apology.

    The trial has had no apparent effect on Fox News’ viewership; it remains the top-rated cable network. Fox’s media reporter, Howard Kurtz, said earlier this year that he had been banned from covering the lawsuit, but the network has since changed direction. Kurtz discussed the case on his show Sunday, saying he would be in Wilmington for the beginning of the trial.

    “The real potential danger is if Fox viewers get the sense that they’ve been lied to. There’s a real downside there,” said Charlie Sykes, founder of the Bulwark website and an MSNBC contributor.

    There’s little indication that the case has changed Fox’s editorial direction. Fox has embraced Trump once again in recent weeks following the former president’s indictment by a Manhattan grand jury, and Carlson presented an alternate history of Capitol riot, based on tapes given to him by House Speaker Kevin McCarthy, R-Calif.

    Just because there has been limited discussion of the Dominion suit on Fox doesn’t mean its fans are unaware of it, said Tim Graham, director of media analysis at the conservative watchdog Media Research Center.

    “There’s a certain amount of tribal reaction to this,” Graham said. “When all of the other networks are thrilling to revealing text messages and emails, they see this as the latest attempt by the liberal media to undermine Fox News. There’s going to be a rally-around-Rupert effect.”

    Fox Corp. and MarketWatch parent News Corp. share common ownership.

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  • Dominion Voting Systems’ defamation case against Fox News should continue to trial, says Delaware judge

    Dominion Voting Systems’ defamation case against Fox News should continue to trial, says Delaware judge

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    DOVER, Del. (AP) — A voting-machine company’s defamation case against Fox News over its airing of false allegations about the 2020 presidential election will go to trial after a Delaware judge on Friday ruled that a jury must decide whether the network aired the claims with actual malice, the standard for proving libel against public figures.

    Superior Court Judge Eric Davis ruled that neither Fox nor Dominion Voting Systems had presented a convincing argument to prevail on whether Fox acted with malice without the case going to trial. But he also ruled that the statements Dominion had challenged constitute defamation “per se” under New York law. That means Dominion did not have to prove damages to establish liability by Fox.

    ‘The evidence developed in this civil proceeding demonstrates that [it] is CRYSTAL clear that none of the statements relating to Dominion about the 2020 election are true.’


    — Superior Court Judge Eric Davis

    “The evidence developed in this civil proceeding demonstrates that [it] is CRYSTAL clear that none of the statements relating to Dominion about the 2020 election are true,” Davis wrote in his summary judgment ruling.

    The decision paves the way for a trial start in mid-April.

    Dominion is suing the network for $1.6 billion, claiming Fox defamed it by repeatedly airing false allegations by then-President Donald Trump and his allies in the weeks after the 2020 election claiming the company’s machines and its accompanying software had switched votes to Democrat Joe Biden. The network aired the claims even though internal communications show that many of its executives and hosts didn’t believe them.

    The company sued Fox News and its parent, Fox Corp.
    FOX,
    +1.36%

    FOXA,
    +1.13%
    ,
    which shares ownership with News Corp
    NWS,
    +1.99%

    NWSA,
    +1.77%
    ,
    parent company of MarketWatch publisher Dow Jones.

    Don’t miss: Top congressional Democrats Schumer and Jeffries seek on-air acknowledgements that Fox News personalities knew Trump lost and election wasn’t stolen

    See: 2020 election ‘was not stolen,’ Fox Chairman Rupert Murdoch said under oath, according to evidence in Dominion case

    Also: Pro-Trump on air, Tucker Carlson privately told his Fox News producer that he hates the former president with a passion

    Fox has said it was simply covering newsworthy allegations made by a sitting president claiming his re-election had been stolen from him. In his ruling, Davis said Fox could not escape potential liability by claiming privileges for neutral reporting or opinion.

    “FNN’s failure to reveal extensive contradicting evidence from the public sphere and Dominion itself indicates that its reporting was not disinterested.” the judge wrote.

    In a statement issued after the ruling, Dominion said it was gratified that the court had rejected Fox’s arguments and found “as a matter of law that their statements about Dominion are false. We look forward to going to trial.”

    Fox emphasized that the case is about the media’s First Amendment protections in covering the news. “Fox will continue to fiercely advocate for the rights of free speech and a free press as we move into the next phase of these proceedings,” the network said in a statement.

    See: ‘A complete nut’: Fox News hosts didn’t believe 2020 election fraud claims

    Also: Tucker Carlson, Sean Hannity among potential witnesses at Fox News trial

    The coverage fed an ecosystem of misinformation surrounding Trump’s loss in 2020 that has persisted ever since.

    MarketWatch contributed.

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  • Tesla’s Plans to Save Money Are Trouble for These Stocks

    Tesla’s Plans to Save Money Are Trouble for These Stocks

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    Tesla


    had bad news for producers of EV raw materials as it offered investors a look at its plans in a widely anticipated three-and-a-half hour presentation on Wednesday evening.

    Shares of the rare-earth producer


    MP Materials


    (ticker: MP) were down 11.2% in premarket trading Thursday, while stocks of companies that make semiconductors using silicon carbide took a hit as well. Futures on the


    S&P 500


    future were down 0.5%.


    Dow Jones Industrial Average


    futures gained 0.3%.

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  • STMicroelectronics revenue, profit jump on automotive, microcontrollers strength

    STMicroelectronics revenue, profit jump on automotive, microcontrollers strength

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    STMicroelectronics NV on Thursday posted a surge in revenue and profit for the fourth quarter led by growth at its automotive and microcontrollers divisions.

    The European chip maker STM IT:STM said net revenue climbed to $4.42 billion compared with $3.56 billion in the 2021 fourth quarter, with the company’s automotive business contributing $1.70 billion.

    Net…

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  • 20 dividend stocks with high yields that have become more attractive right now

    20 dividend stocks with high yields that have become more attractive right now

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    Income-seeking investors are looking at an opportunity to scoop up shares of real estate investment trusts. Stocks in that asset class have become more attractive as prices have fallen and cash flow is improving.

    Below is a broad screen of REITs that have high dividend yields and are also expected to generate enough excess cash in 2023 to enable increases in dividend payouts.

    REIT prices may turn a corner in 2023

    REITs distribute most of their income to shareholders to maintain their tax-advantaged status. But the group is cyclical, with pressure on share prices when interest rates rise, as they have this year at an unprecedented scale. A slowing growth rate for the group may have also placed a drag on the stocks.

    And now, with talk that the Federal Reserve may begin to temper its cycle of interest-rate increases, we may be nearing the time when REIT prices rise in anticipation of an eventual decline in interest rates. The market always looks ahead, which means long-term investors who have been waiting on the sidelines to buy higher-yielding income-oriented investments may have to make a move soon.

    During an interview on Nov 28, James Bullard, president of the Federal Reserve Bank of St. Louis and a member of the Federal Open Market Committee, discussed the central bank’s cycle of interest-rate increases meant to reduce inflation.

    When asked about the potential timing of the Fed’s “terminal rate” (the peak federal funds rate for this cycle), Bullard said: “Generally speaking, I have advocated that sooner is better, that you do want to get to the right level of the policy rate for the current data and the current situation.”

    Fed’s Bullard says in MarketWatch interview that markets are underpricing the chance of still-higher rates

    In August we published this guide to investing in REITs for income. Since the data for that article was pulled on Aug. 24, the S&P 500
    SPX,
    -0.29%

    has declined 4% (despite a 10% rally from its 2022 closing low on Oct. 12), but the benchmark index’s real estate sector has declined 13%.

    REITs can be placed broadly into two categories. Mortgage REITs lend money to commercial or residential borrowers and/or invest in mortgage-backed securities, while equity REITs own property and lease it out.

    The pressure on share prices can be greater for mortgage REITs, because the mortgage-lending business slows as interest rates rise. In this article we are focusing on equity REITs.

    Industry numbers

    The National Association of Real Estate Investment Trusts (Nareit) reported that third-quarter funds from operations (FFO) for U.S.-listed equity REITs were up 14% from a year earlier. To put that number in context, the year-over-year growth rate of quarterly FFO has been slowing — it was 35% a year ago. And the third-quarter FFO increase compares to a 23% increase in earnings per share for the S&P 500 from a year earlier, according to FactSet.

    The NAREIT report breaks out numbers for 12 categories of equity REITs, and there is great variance in the growth numbers, as you can see here.

    FFO is a non-GAAP measure that is commonly used to gauge REITs’ capacity for paying dividends. It adds amortization and depreciation (noncash items) back to earnings, while excluding gains on the sale of property. Adjusted funds from operations (AFFO) goes further, netting out expected capital expenditures to maintain the quality of property investments.

    The slowing FFO growth numbers point to the importance of looking at REITs individually, to see if expected cash flow is sufficient to cover dividend payments.

    Screen of high-yielding equity REITs

    For 2022 through Nov. 28, the S&P 500 has declined 17%, while the real estate sector has fallen 27%, excluding dividends.

    Over the very long term, through interest-rate cycles and the liquidity-driven bull market that ended this year, equity REITs have fared well, with an average annual return of 9.3% for 20 years, compared to an average return of 9.6% for the S&P 500, both with dividends reinvested, according to FactSet.

    This performance might surprise some investors, when considering the REITs’ income focus and the S&P 500’s heavy weighting for rapidly growing technology companies.

    For a broad screen of equity REITs, we began with the Russell 3000 Index
    RUA,
    -0.04%
    ,
    which represents 98% of U.S. companies by market capitalization.

    We then narrowed the list to 119 equity REITs that are followed by at least five analysts covered by FactSet for which AFFO estimates are available.

    If we divide the expected 2023 AFFO by the current share price, we have an estimated AFFO yield, which can be compared with the current dividend yield to see if there is expected “headroom” for dividend increases.

    For example, if we look at Vornado Realty Trust
    VNO,
    +1.03%
    ,
    the current dividend yield is 8.56%. Based on the consensus 2023 AFFO estimate among analysts polled by FactSet, the expected AFFO yield is only 7.25%. This doesn’t mean that Vornado will cut its dividend and it doesn’t even mean the company won’t raise its payout next year. But it might make it less likely to do so.

    Among the 119 equity REITs, 104 have expected 2023 AFFO headroom of at least 1.00%.

    Here are the 20 equity REITs from our screen with the highest current dividend yields that have at least 1% expected AFFO headroom:

    Company

    Ticker

    Dividend yield

    Estimated 2023 AFFO yield

    Estimated “headroom”

    Market cap. ($mil)

    Main concentration

    Brandywine Realty Trust

    BDN,
    +2.12%
    11.52%

    12.82%

    1.30%

    $1,132

    Offices

    Sabra Health Care REIT Inc.

    SBRA,
    +2.41%
    9.70%

    12.04%

    2.34%

    $2,857

    Health care

    Medical Properties Trust Inc.

    MPW,
    +2.53%
    9.18%

    11.46%

    2.29%

    $7,559

    Health care

    SL Green Realty Corp.

    SLG,
    +2.25%
    9.16%

    10.43%

    1.28%

    $2,619

    Offices

    Hudson Pacific Properties Inc.

    HPP,
    +1.41%
    9.12%

    12.69%

    3.57%

    $1,546

    Offices

    Omega Healthcare Investors Inc.

    OHI,
    +1.23%
    9.05%

    10.13%

    1.08%

    $6,936

    Health care

    Global Medical REIT Inc.

    GMRE,
    +2.55%
    8.75%

    10.59%

    1.84%

    $629

    Health care

    Uniti Group Inc.

    UNIT,
    +0.55%
    8.30%

    25.00%

    16.70%

    $1,715

    Communications infrastructure

    EPR Properties

    EPR,
    +0.86%
    8.19%

    12.24%

    4.05%

    $3,023

    Leisure properties

    CTO Realty Growth Inc.

    CTO,
    +2.22%
    7.51%

    9.34%

    1.83%

    $381

    Retail

    Highwoods Properties Inc.

    HIW,
    +0.99%
    6.95%

    8.82%

    1.86%

    $3,025

    Offices

    National Health Investors Inc.

    NHI,
    +2.59%
    6.75%

    8.32%

    1.57%

    $2,313

    Senior housing

    Douglas Emmett Inc.

    DEI,
    +0.87%
    6.74%

    10.30%

    3.55%

    $2,920

    Offices

    Outfront Media Inc.

    OUT,
    +0.89%
    6.68%

    11.74%

    5.06%

    $2,950

    Billboards

    Spirit Realty Capital Inc.

    SRC,
    +1.15%
    6.62%

    9.07%

    2.45%

    $5,595

    Retail

    Broadstone Net Lease Inc.

    BNL,
    -0.30%
    6.61%

    8.70%

    2.08%

    $2,879

    Industial

    Armada Hoffler Properties Inc.

    AHH,
    +0.00%
    6.38%

    7.78%

    1.41%

    $807

    Offices

    Innovative Industrial Properties Inc.

    IIPR,
    +1.42%
    6.24%

    7.53%

    1.29%

    $3,226

    Health care

    Simon Property Group Inc.

    SPG,
    +1.03%
    6.22%

    9.55%

    3.33%

    $37,847

    Retail

    LTC Properties Inc.

    LTC,
    +1.42%
    5.99%

    7.60%

    1.60%

    $1,541

    Senior housing

    Source: FactSet

    Click on the tickers for more about each company. You should read Tomi Kilgore’s detailed guide to the wealth of information for free on the MarketWatch quote page.

    The list includes each REIT’s main property investment type. However, many REITs are highly diversified. The simplified categories on the table may not cover all of their investment properties.

    Knowing what a REIT invests in is part of the research you should do on your own before buying any individual stock. For arbitrary examples, some investors may wish to steer clear of exposure to certain areas of retail or hotels, or they may favor health-care properties.

    Largest REITs

    Several of the REITs that passed the screen have relatively small market capitalizations. You might be curious to see how the most widely held REITs fared in the screen. So here’s another list of the 20 largest U.S. REITs among the 119 that passed the first cut, sorted by market cap as of Nov. 28:

    Company

    Ticker

    Dividend yield

    Estimated 2023 AFFO yield

    Estimated “headroom”

    Market cap. ($mil)

    Main concentration

    Prologis Inc.

    PLD,
    +1.63%
    2.84%

    4.36%

    1.52%

    $102,886

    Warehouses and logistics

    American Tower Corp.

    AMT,
    +0.75%
    2.66%

    4.82%

    2.16%

    $99,593

    Communications infrastructure

    Equinix Inc.

    EQIX,
    +0.80%
    1.87%

    4.79%

    2.91%

    $61,317

    Data centers

    Crown Castle Inc.

    CCI,
    +0.93%
    4.55%

    5.42%

    0.86%

    $59,553

    Wireless Infrastructure

    Public Storage

    PSA,
    +0.19%
    2.77%

    5.35%

    2.57%

    $50,680

    Self-storage

    Realty Income Corp.

    O,
    +0.72%
    4.82%

    6.46%

    1.64%

    $38,720

    Retail

    Simon Property Group Inc.

    SPG,
    +1.03%
    6.22%

    9.55%

    3.33%

    $37,847

    Retail

    VICI Properties Inc.

    VICI,
    +0.81%
    4.69%

    6.21%

    1.52%

    $32,013

    Leisure properties

    SBA Communications Corp. Class A

    SBAC,
    +0.27%
    0.97%

    4.33%

    3.36%

    $31,662

    Communications infrastructure

    Welltower Inc.

    WELL,
    +3.06%
    3.66%

    4.76%

    1.10%

    $31,489

    Health care

    Digital Realty Trust Inc.

    DLR,
    +0.63%
    4.54%

    6.18%

    1.64%

    $30,903

    Data centers

    Alexandria Real Estate Equities Inc.

    ARE,
    +1.49%
    3.17%

    4.87%

    1.70%

    $24,451

    Offices

    AvalonBay Communities Inc.

    AVB,
    +0.98%
    3.78%

    5.69%

    1.90%

    $23,513

    Multifamily residential

    Equity Residential

    EQR,
    +1.46%
    4.02%

    5.36%

    1.34%

    $23,503

    Multifamily residential

    Extra Space Storage Inc.

    EXR,
    +0.31%
    3.93%

    5.83%

    1.90%

    $20,430

    Self-storage

    Invitation Homes Inc.

    INVH,
    +2.15%
    2.84%

    5.12%

    2.28%

    $18,948

    Single-family residental

    Mid-America Apartment Communities Inc.

    MAA,
    +1.83%
    3.16%

    5.18%

    2.02%

    $18,260

    Multifamily residential

    Ventas Inc.

    VTR,
    +2.22%
    4.07%

    5.95%

    1.88%

    $17,660

    Senior housing

    Sun Communities Inc.

    SUI,
    +2.12%
    2.51%

    4.81%

    2.30%

    $17,346

    Multifamily residential

    Source: FactSet

    Simon Property Group Inc.
    SPG,
    +1.03%

    is the only REIT to make both lists.

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