VZIO - Fall themes for media/cable point to sector picks and pans from Wells Fargo

Wells Fargo likes the setup for media stocks this fall - and a new note covering its "back-to-school" themes for media and cable stocks points to factors including the direct-to-consumer pivot, broadband strength and cyclical recovery having an impact on the names. Starting with media content, the bank notes summer brought a "dearth" of new content and consumers spending more time on activities other than video - but "with temperatures cooling, vacations decelerating and Delta impacts obstinate - and a much stronger slate of new content - we see a return to engagement and streaming net add acceleration." Its favorite long ideas there in the second half are Netflix (NASDAQ:NFLX) and ViacomCBS (VIAC, VIACA); it's especially bullish on subscribers, expecting Netflix to log 4.5 million net adds in Q3, and 9.25 million in Q4, and ViacomCBS to hit 52 million SVOD subs by year-end. It's also favoring a couple of

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Fall themes for media/cable point to sector picks and pans from Wells Fargo