3 Media Stocks in Focus: News Corp.’s Murdoch to Testify, IMAX Estimates are Lowered, and Netflix Slides on Citi Initiation
News Corp. (NASDAQ:NWSA): Chairman Rupert Murdoch said that he would testify — again — before the U.K. Parliament in regards to a leaked tape that surfaced in which Murdoch is heard indicating that payments made to public officials in exchange for information was a part of the culture of U.K. journalism. Murdoch may have committed contempt of Parliament from a hearing last year, when he said, “Paying police officers for information is wrong.”
IMAX (NASDAQ:IMAX): B. Riley has reduced its third-quarter revenue estimates for IMAX to $128 million from $160 million because of the delay of 300: Rise of an Empire to the first quarter of 2014 from the third quarter of 2013. However, the firm continues to expect IMAX’s screen monetization to improve starting in 2014 and reiterates a Buy rating on the stock.
Netflix (NASDAQ:NFLX): In its initiation of coverage note, Citi analyst Mark May thinks shares of Netflix will be range-bound until a price hike, though one is not expected for at least 12 months. The analyst surmises that every 5 percent gain in domestic streaming ARPU will yield $65 million in incremental contribution profit. Citi’s initiation of a Neutral rating has caused Netflix shares to recede after yesterday’s gains.