The advertising market’s concerns, along with questions about the future of streaming profits and competition from tech giants, have been central to the media stock narrative in recent years. Recently, the conversation has included both confirmed and speculated mega-deals, such as Warner Bros. Discovery. What do these developments imply for investors in Hollywood and the stocks they should consider?
Wall Street analysts have varied opinions, but many see the Hollywood conglomerates as problematic investments as we look towards 2026. As 2025 has concluded, here’s a look at media and entertainment stocks that analysts are recommending for the coming year, from major players to niche companies.
Top Stock Picks
Analyst: Craig Moffett, MoffettNathanson
Pick: Charter Communications
Why: Moffett points out that Charter Communications’ stock appears undervalued. Despite investor skepticism about cable companies, particularly in light of competition from telcos, he believes cable firms have strategic advantages. He cites Charter’s potential for significant cash flow generation and a “buy” rating with a target price of $700.
Analyst: Doug Creutz, TD Cowen
Picks: Take-Two Interactive Software
Why: Creutz views Take-Two as a leading player in the global video game market, bolstered by the anticipated release of Grand Theft Auto VI in late 2026. This upcoming release is expected to drive significant market share improvement, with a “buy” rating and a target price of $284.
Streaming and Entertainment Insights
Analyst: Benjamin Swinburne, Morgan Stanley
Pick: Spotify, Disney, Netflix, Live Nation
Why: Swinburne notes that AI innovations could bolster major streaming platforms like Netflix and Spotify. He anticipates that both will benefit from enhanced personalization. For Disney, he sees potential growth driven by technology investments and market repair for Disney+. Live Nation is praised for its resilience against AI risks, with a target price of $170, maintaining solid earnings growth.
Analyst: Peter Supino, Wolfe Research
Pick: Live Nation, Spotify, Disney
Why: Supino regards Live Nation as a valuable investment despite 2025 setbacks, highlighting strong supply-demand dynamics. He rates Spotify positively, projecting continued growth despite some pressures. On Disney, he acknowledges complexities but emphasizes positive indicators in its direct-to-consumer strategy and theme park recoveries.
Additional Stock Recommendations
Analyst: Michael Morris, Guggenheim
Pick: Roku
Why: Morris has raised Roku’s target price, noting its solid connected TV foundation and revenue growth potential driven by advertising demand and various partnerships, including with Amazon.
Analyst: Lance Vitanza, TD Cowen
Pick: TKO Group
Why: Vitanza describes TKO Group as a strong investment, bolstered by rising sports rights value and a strong free cash flow. He appreciates its contracts and the management team, projecting it to evolve into a significant sports-rights platform.
Analyst: Ralph Schackart, William Blair
Pick: Meta Platforms
Why: Schackart finds Meta’s advertising growth propelling the company, crediting advancements in AI for this success. Although cautious about AI investments, he maintains a positive outlook for Meta’s long-term potential.
