- Nexstar's share price has been on an upward trajectory over the last years with only one substantial dip this year, albeit only temporary when COVID-19 hit.
- While other broadcasters, such as European peers, have had revenue and share price declines, Nexstar has been able to grow revenue, which has supported the surge in the share price.
- Nexstar's acquisition of Tribune Media and US election related revenue led to a good performance in 2020, but core advertising revenue is under pressure and operating expenses are rising fast.
- Nexstar's current valuation is somewhat higher than European broadcasters. Better growth can justify this, but it's a challenge for Nexstar to keep showing the same performance in 2021.
- As Nexstar's growth is likely to decelerate next year when the positive impact of Tribune Media and the US elections ends, I'd recommend retail investors to stay on the sidelines.
For further details see:
2021 Is When Nexstar Needs To Show What It's Made Of