March Madness Fanfare Should Prop Cable Stocks
It is no mystery that major sporting events tend to get some of the best possible ratings but some of the market might be unaware of the fact that the last few Super Bowl performances have been some of the most-watched events in the history of television. Of course, this means increased advertising revenue and this is a factor that could lead to rising valuations in cable companies.
Assessing Direction in Cable Media
Assessing the overall direction in the cable media space can be tricky in certain market environments as there can be major seasonal fluctuations. But when we look at the increasing number of viewers that can be found in the playoff sporting events in the big-three sports, it is looking as though some of these outlets have found ways of commanding a larger audience. This means that any drops in the valuations of these companies can be viewed as a chance to buy at the lows.
Cable media companies fall into the tech space, as far as broad sectors are concerned and this means that these are stock types that stand to benefit from long term positions when certain benchmarks are trading at lower levels. In addition to this, the NCAA March Madness is meeting most of the higher expectations in terms of audience viewership, as a record number of fans have chosen to print March Madness bracket for this year’s tournament.
Media Trends for 2016
All of this point to a positive media trend for the remainder of this year. The NASDAQ as a whole has been underperforming in the early parts of 2016, so there is a strong possibility for gains for investors that are able to buy into cable companies and others at these lower price levels.
Media events like March Madness in the NCAA have been able to reach a large number of multimedia demographics, and this is the type of activity that can support an industry even during weaker periods. As long as the market continues to see elevated viewership numbers for sporting events, it is unlikely that we will see much more weakness in the sector. We could be seeing some changes in the broader trajectory for where the tech space is headed, so opportunities that are developing here that will likely be interesting for many in the space.