Disney, Warner Bros. Discovery get ready to face Wall Street

Following a brutal week for tech companies on Wall Street, it’s now media’s turn under the earnings spotlight as recession fears grow.

Why it matters: Some of the largest tech giants, including Meta and Alphabet, have lost billions in market value without much hope on the horizon.

  • Meta alone is seeing its stock trade at a six-year low and a challenged ad business threatens Mark Zuckerberg’s ambitious — and expensive — metaverse bet.

Driving the news: The next two weeks will serve as a state of the media industry as 2022 winds down.

  • This week alone will see Fox, Lionsgate and Warner Bros. Discovery, while Disney and AMC Entertainment will report next week.
  • Fox and Lionsgate have both been active in the M&A space. Lionsgate for months was looking to offload Starz before pivoting to a sale of its studio business.
  • Fox, meanwhile, is looking at recombining with News Corp.

The big picture: While most tech companies came through the week with a black eye or two, the early results for media companies this earnings season have been less disastrous.

  • Netflix not only reversed back-to-back quarters of subscriber declines, it added more customers than expected during the third quarter. The streaming giant’s stock is up 22% since then and is launching its anticipated ad-supported tier this week.
  • Though it topped estimates, Comcast’s pay-TV and streaming businesses remain challenged. But its stock hasn’t nosedived.

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