2023-04-13 16:39:00 ET
Shares of streaming companies Netflix (NASDAQ: NFLX) , Roku (NASDAQ: ROKU) , and FuboTV (NYSE: FUBO) were surging today, rising 4.4%, 4.5%, and 7.3%, respectively, as of 3:54 p.m. ET.
All three stocks are leveraged to streaming subscriptions and digital advertising, which benefit from rising consumer-discretionary spending . Moreover, Netflix trades at a relatively high multiple of earnings, while both Roku and FuboTV aren't profitable. Thus, these stocks have been some of the worst hit in the market, as their relatively expensive stock prices last year were pulled down by rising interest rates in addition to rising interest rates negatively affecting consumers' willingness to spend.
However, two events today may have combined to propel these shares higher. First, a lower-than-expected Producer Price Index (PPI) reading this morning encouraged investors to think inflation may finally be on the decline. Second, an analyst started coverage on two other streaming-oriented stocks with "buy" ratings, which perhaps lifted up the other players in the sector.
For further details see:
Why Netflix, Roku, and FuboTV Surged Today