13 Best News and Digital Media Stocks To Buy

Published April 21, 2023 at 12:08 pm EDT Updated August 19, 2026 at 9:42 am EDT

In this article, we discuss 10 best news and digital media stocks to buy.

According to Deloitte, it is expected that the media and entertainment industry will undergo further changes in 2023. Companies involved in film production and streaming services are dealing with their own disruption in the market and attempting to generate profits in a less lucrative environment. In addition to competing with each other for audience attention, time, and revenue, they are also contending with social media, user-generated content, and video games. Video games have progressed rapidly and appeal strongly to younger demographics.

In 2020, the entertainment industry experienced a significant decline, with music events canceled, theaters shutting down, and sports matches played without live audiences. However, in 2023, the industry is optimistic that it will be able to recapture the communal experience of sold-out events, crowded cinemas, and lively arenas.

Despite the challenges faced by the entertainment industry, consumers are returning to their preferred venues and platforms in promising numbers. Gower Street Analytics reports that the global box office reached $25.9 billion in 2022, marking a 27% increase from 2021. However, this is still 35% lower than the average for the three years prior to the pandemic. Live music revenue is predicted to surpass pre-pandemic levels by 2024, with digital music streaming subscriptions driving growth in recorded music. PwC estimates that recorded music revenues will rise from $36.1 billion in 2021 to $45.8 billion in 2026. Live theater is also making a comeback, with the Society of London Theatre reporting a 7.21% increase in attendance and 7.9% capacity in 2022 compared to 2019. While box-office revenue fell by 1.1% in real terms, Broadway shows grossed $51.9 million during the 2022 holiday week, up from $26.3 million for the same week the previous year. The sports industry is also proving to be particularly resilient, with teams projected to maintain growth in attendance and revenue despite a mild recession forecasted by Fitch for Q2 2023 in the US.

WARC’s analysis in the beginning of March 2023 mentions various digital media companies that are taking ad revenue away from print media. For instance, Amazon.com, Inc. (NASDAQ:AMZN) generated $37.7 billion in ad revenue last year, which is 80% of what print media is predicted to make in 2023. Amazon.com, Inc. (NASDAQ:AMZN)’s ad revenue is expected to grow by 20.8% this year compared to 2022, and it’s likely that their global ad revenue will soon surpass that of print media. According to the report, Alphabet Inc. (NASDAQ:GOOG) and Meta Platforms, Inc. (NASDAQ:META) will probably earn almost $400 billion in ad revenue this year, which accounts for about 40% of the total worldwide share. Meanwhile, ad revenue for traditional video, audio, and out-of-home advertising is projected to grow by only 1.6% compared to 2016, despite the shift from legacy to digital platforms. Although the migration from legacy to digital has been prominent in other forms of media, it has not been as widespread for print media.

Not too long ago, print media used to dominate the global advertising revenue. According to WARC, in 1980, print media accounted for 62.4% of all global ad spending, and it wasn’t until 2001 that television overtook newspapers in terms of ad revenue. By 2010, despite the emergence of the digital advertising opportunities provided by Google and Facebook, print media still accounted for around 30% of global ad revenue. However, in 2007, the global ad revenue for print newspapers reached its peak at $121.4 billion, but WARC predicts that by 2023, it will fall to $22.8 billion.

Although the future of print media looks gloomy, there have been a few positive developments. According to media analyst Brian Morrissey, in an interview with WARC, The New York Times Company (NYSE:NYT) has been a prominent example of success in digital ad revenue, providing a sustainable and profitable business model for news companies. The newspaper has experienced a surge in digital subscription revenue during the Trump presidency and the COVID-19 pandemic, making it a model for success for other news organizations to follow.

Some of the best entertainment stocks to invest in include Netflix, Inc. (NASDAQ:NFLX), Warner Bros. Discovery, Inc. (NASDAQ:WBD), and The Walt Disney Company (NYSE:DIS).

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Our Methodology

For this article, we specifically chose news and digital media stocks among the broader entertainment sector, while omitting sub-sectors like advertising and gaming. We scanned Insider Monkey’s database of 943 hedge funds and picked the top 13 companies that provide services in the news and digital media sector with the highest number of hedge fund investors. These are the best news and digital media stocks to buy according to hedge funds.

Best News and Digital Media Stocks To Buy

13. Digital Media Solutions, Inc. (NYSE:DMS)

Number of Hedge Fund Holders: 7

Digital Media Solutions, Inc. (NYSE:DMS) is a digital performance marketing company in the United States that offers a software delivery platform. It has three main segments – Brand Direct, Marketplace, and Technology Solutions, and serves various industries such as consumer finance, e-commerce, and education. The company also provides managed services and marketing automation software to help clients control their advertising spends. Digital Media Solutions, Inc.’s full year 2022 results showed a full year net revenue of $391 million, above the firm’s guidance of $385 million to $390 million.

On March 6, Digital Media Solutions, Inc. declared that it will purchase HomeQuote.io, a home services marketplace, as well as the media and technology assets of the ClickDealer international ad network from Customer Direct Group. The acquisition will cost $35 million at closing, with the possibility of an additional $10 million of contingent consideration being paid based on performance over the next two years. Following the acquisition, Digital Media Solutions, Inc. anticipates adding $70 million to $80 million to its FY2023 revenue and predicts a positive impact on its FY2023 earnings.

According to Insider Monkey’s fourth quarter database, 7 hedge funds were long Digital Media Solutions, Inc., compared to 6 funds in the prior quarter.

Like Netflix, Inc., Warner Bros. Discovery, Inc., and The Walt Disney Company, Digital Media Solutions, Inc. is one of the best entertainment stocks to invest in.

12. BuzzFeed, Inc. (NASDAQ:BZFD)

Number of Hedge Fund Holders: 10

BuzzFeed, Inc. (NASDAQ:BZFD) is a digital media company that distributes content on various platforms, including BuzzFeed, BuzzFeed News, Tasty, HuffPost, and Complex Networks. It offers entertainment, pop culture, news, opinion, lifestyle, and other content through articles, videos, lists, quizzes, and original series. It is one of the best entertainment stocks to invest in. In Q4 2022, BuzzFeed, Inc. reported a revenue of $134.62 million, beating market estimates by $3.37 million. The company expects overall revenues in the range of $61 million to $67 million during Q1 2023.

The value of BuzzFeed, Inc.’s increased in late January after reports emerged that Meta Platforms, Inc. had entered into a deal with BuzzFeed worth close to $10 million. Under the agreement, BuzzFeed will create content for Facebook and Instagram, which has helped drive the increase in the stock price.

According to Insider Monkey’s fourth quarter database, 10 hedge funds were bullish on BuzzFeed, Inc., compared to 8 funds in the third quarter.

11. Gannett Co., Inc. (NYSE:GCI)

Number of Hedge Fund Holders: 17

Gannett Co., Inc. (NYSE:GCI) is a US-based company that provides media and marketing solutions. It has two main segments – Gannett Media and Digital Marketing Solutions. Its primary offerings consist of daily and weekly print media, sports networks, and websites that cater to local audiences. It is one of the best entertainment stocks to invest in. On February 23, Gannett Co., Inc. experienced a 17% surge in its stock price after surpassing its earnings per share expectations in Q4 2022. This positive result was driven by a 24% increase in digital-only paid subscriptions, reaching a total of 2.03 million, and a 29% rise in digital-only circulation revenues, which reached $35.5 million.

According to Insider Monkey’s fourth quarter database, 17 hedge funds were bullish on Gannett Co., Inc., compared to 14 funds in the prior quarter. Jeremy Carton and Gilbert Li’s Alta Fundamental Advisers is the largest position holder in the company, with 7.7 million shares worth $15.7 million.

10. Thomson Reuters Corporation (NYSE:TRI)

Number of Hedge Fund Holders: 19

Thomson Reuters Corporation (NYSE:TRI) offers business information services across the Americas, Europe, the Middle East, Africa, and the Asia Pacific regions. The Reuters News division provides financial, business, and international news to professional organizations, media outlets, and news consumers via a range of platforms including Reuters News Agency, Reuters.com, and Reuters Events. It is one of the best entertainment stocks to watch.

On April 5, Credit Suisse increased its price target for Thomson Reuters Corporation to $150 from $138 and maintained an Outperform rating on the shares. The decision is based on Thomson Reuters Corporation’s plan to give back $2.2 billion to shareholders through a $4.67/share cash distribution from the proceeds of share sales in LSEG. In addition, the company has announced a reverse stock split that will be proportional to the cash distribution, based on the average-weighted trading price five days before the transaction versus the cash distribution, the firm informed investors.

According to Insider Monkey’s fourth quarter database, 19 hedge funds were bullish on Thomson Reuters Corporation, compared to 26 funds in the earlier quarter. James Parsons’ Junto Capital Management is the largest stakeholder of the company, with 834,183 shares worth over $95 million.

9. Nexstar Media Group, Inc. (NASDAQ:NXST)

Number of Hedge Fund Holders: 31

Nexstar Media Group, Inc. (NASDAQ:NXST) operates in the field of television broadcasting and digital media. Its main focus is on acquiring, developing, and running television stations as well as interactive community websites and digital media services across the United States. It is one of the best entertainment stocks to invest in.

As per Wells Fargo, Nexstar Media Group, Inc. has given guidance of high-single to low-double digit percentage growth in gross retransmission for 2023. Although the debates surrounding retransmission are well understood, they may not be completely settled. The firm believes that while the retrans debates are de-escalating, there is still some risk in the guidance provided. Therefore, Wells Fargo prefers to stay on the sidelines with an Equal Weight rating and a $175 price target for Nexstar Media Group, Inc. shares as of March 21.

According to Insider Monkey’s fourth quarter database, 31 hedge funds were bullish on Nexstar Media Group, Inc., compared to 32 funds in the prior quarter. Amy Minella’s Cardinal Capital is the largest stakeholder of the company, with 943,570 shares worth over $165 million.

In addition to Netflix, Inc., Warner Bros. Discovery, Inc., and The Walt Disney Company, Nexstar Media Group, Inc. is one of the best entertainment stocks to watch.

Here is what Richie Capital Group has to say about Nexstar Media Group, Inc. in its Q1 2022 investor letter:

“Nexstar Media Group (NXST up 24.8%) – The television broadcasting and digital media company surged during the quarter after presenting at an investor conference where management pointed to a strong 2022 for both political advertising and retransmission. They have exposure to more than 80% of markets with competitive mid-term political races. NXST is developing new ad categories such as sports betting and they are focused on expanding digital ad revenue and providing digital solutions to local advertisers. Auto advertising will return in the fall as auto dealerships re-enter the market to sell their replenished inventory.”

8. Nasdaq, Inc. (NASDAQ:NDAQ)

Number of Hedge Fund Holders: 35

Nasdaq, Inc. (NASDAQ:NDAQ) is a global technology company that provides services to capital markets and other industries. The company is divided into three segments, namely Market Platforms, Capital Access Platforms, and Anti-Financial Crime. The Capital Access Platforms segment focuses on the sale and distribution of historical and real-time market data, the creation and licensing of Nasdaq-branded indexes and financial products, the operation of listing platforms, and the provision of investment insights, workflow solutions, investor relations intelligence, ESG solutions, and governance solutions. It is one of the best news and digital media stocks to watch.

Michael Cyprys, an analyst at Morgan Stanley, lowered the rating of Nasdaq, Inc. from Overweight to Equal Weight and decreased the price target to $60 from $70 on April 11, citing the uncertain macro outlook and recent market events.

According to Insider Monkey’s fourth quarter database, 35 hedge funds were long Nasdaq, Inc., compared to 32 funds in the prior quarter. Ric Dillon’s Diamond Hill Capital is the largest stakeholder of the company, with 4.8 million shares worth $294.5 million.

TimesSquare Capital made the following comment about Nasdaq, Inc. in its Q3 2022 investor letter:

“A boost to the portfolio came from Nasdaq, Inc. and its 12% advance. They serve capital markets and other industries worldwide, while continuing to make strategic moves towards more recurring revenues. Second quarter earnings exceeded Street projections due to the combination of higher revenues and lower expenses. Areas of strength were Investment Intelligence, their Corporate Platforms segment, and Market Technology.”

7. DISH Network Corporation (NASDAQ:DISH)

Number of Hedge Fund Holders: 37

DISH Network Corporation (NASDAQ:DISH) is a US-based company that offers pay-TV services along with its subsidiaries. The company is divided into two segments – Pay-TV and Wireless. It is one of the best entertainment stocks to invest in. On March 13, Citi analyst Michael Rollins maintained a Buy rating on DISH Network Corporation but lowered the firm’s price target on Dish to $18 from $33. Rollins has modified the firm’s financial model based on the Q4 results, which now includes greater costs of capital and increased investments in network expansion. Additionally, the firm has recognized heightened risks for DISH Network Corporation in both the operational and financial environment. Regardless, DISH Network Corporation remains a Buy-rated stock at Citi.

According to Insider Monkey’s fourth quarter database, 37 hedge funds were long DISH Network Corporation, compared to 40 funds in the last quarter. Boykin Curry’s Eagle Capital Management is the biggest stakeholder of the company, with 15.3 million shares worth $215.2 million.

Here is what ClearBridge Investments has to say about DISH Network Corporation in its Q2 2021 investor letter:

“Portfolio holdings in the communication services and financial sectors also made strong contributions. Dish Network continues to make progress on the buildout of its greenfield 5G network, with Las Vegas slated to become the first market launched later this year. The company gained credibility, and its stock reacted favorably, after it announced a partnership with Amazon to deploy a 5G cloud-native network using AWS’s cloud infrastructure. While the stock has been volatile in recent quarters, we continue to feel confident in Dish’s long-term prospects, which include competing as a fourth U.S. wireless carrier. Charter Communications has been executing well and benefiting from the growth in residential broadband, which has been accelerated by COVID-19 and should see further support from the Biden Administration’s infrastructure bill, which earmarks $65 billion for broadband buildout. In addition, we expect the company to continue to grow its wireless business, leveraging its mobile virtual network operator (MVNO) relationship with Verizon. The company continues to generate strong and growing free cash flow and deploys it toward consistent and material share buybacks.”

6. Paramount Global (NASDAQ:PARA)

Number of Hedge Fund Holders: 38

Paramount Global (NASDAQ:PARA) operates as a media and entertainment company worldwide. The company has three main segments – TV Media, Direct-to-Consumer, and Filmed Entertainment. It is one of the best entertainment stocks to watch. On March 28, Bank of America upgraded Paramount Global from Neutral to Buy and raised the price target on the shares from $24 to $32. According to the firm’s research note, Paramount Global possesses a distinctive set of assets that would pique significant buyer interest if the company were ever to be sold. The firm also believes that the reports of potential buyers reinforce its buying argument for Paramount Global. BofA argued that the company’s portfolio’s inherent asset value offers a safeguard for the stock’s value in the short and medium term.

According to Insider Monkey’s fourth quarter database, 38 hedge funds were long Paramount Global, compared to 40 funds in the prior quarter. Warren Buffett’s Berkshire Hathaway is the largest stakeholder of the company, with 93.6 million shares worth $1.58 billion.

5. The New York Times Company (NYSE:NYT)

Number of Hedge Fund Holders: 38

The New York Times Company and its affiliated entities supply news and information to audiences worldwide using various platforms. The company provides The New York Times, a daily and Sunday newspaper in the US, as well as an international edition of The Times. In addition, it operates the website NYTimes.com. It is one of the best news and entertainment stocks to invest in. On February 9, The New York Times Company declared a $0.11 per share quarterly dividend, a 22.2% increase from its prior dividend of $0.09. The dividend is payable on April 20, to shareholders of record on April 5.

On March 15, JPMorgan increased its price target on The New York Times Company from $38 to $41 and maintained an Overweight rating on the stock. The analyst explained that the company’s bundle strategy is leading to advantageous outcomes.

According to Insider Monkey’s fourth quarter database, 38 hedge funds were bullish on The New York Times Company, compared to 34 funds in the prior quarter. ValueAct Capital is the biggest stakeholder of the company, with 13.6 million shares worth approximately $443 million.

4. News Corporation (NASDAQ:NWSA)

Number of Hedge Fund Holders: 40

News Corporation (NASDAQ:NWSA) is a global company that provides media and information services, distributing content and data products, including The Wall Street Journal, Barron’s, MarketWatch, Investor’s Business Daily, Factiva, Dow Jones Risk & Compliance, Dow Jones Newswires, and OPIS. The company uses diverse media channels such as newspapers, newswires, websites, mobile applications, newsletters, magazines, proprietary databases, live journalism, video, and podcasts. News Corporation is one of the best news and digital media stocks to watch. The company paid $0.10 per share semi-annual dividend on April 12.

According to Insider Monkey’s fourth quarter database, 40 hedge funds were long News Corporation, compared to 31 funds in the earlier quarter. Donald Yacktman’s Yacktman Asset Management is the biggest stakeholder of the company, with 16.80 million shares worth $305.8 million.

Here is what L1 Capital specifically said about News Corporation (NASDAQ:NWS) in its Q2 2022 investor letter:

“News Corporation (NASDAQ:NWS) (Long -26%) shares fell over the quarter despite reporting third quarter results in line with consensus expectations. The decline was primarily driven by a softening in investor sentiment towards News Corp’s Digital Real Estate assets against a backdrop of rising interest rates in both Australia and the U.S., with REA Group shares down 17% during the quarter. While concerns over property market drivers are likely to continue in the near term, we see both REA Group and Move as being well positioned to structurally improve their businesses through this period. We continue to believe the News Corp assets are materially under-valued and remain supportive of ongoing initiatives to unlock value across the Group.”

3. Warner Bros. Discovery, Inc. (NASDAQ:WBD)

Number of Hedge Fund Holders: 60

Warner Bros. Discovery, Inc. is a media and entertainment company worldwide. It operates through three segments – Studios, Network, and DTC. Wells Fargo has noticed that the shares of Warner Bros. Discovery, Inc. have dropped by 11% in the three sessions following the launch event of their “Max” streaming service. This is in contrast to the media group being down by only 3% and the S&P 500 remaining flat during the same period. Wells Fargo attributed the decline to “churn anxieties” as some HBO Max subscribers will have to download the new app. Despite this, Wells Fargo believes that the negative sentiment towards Max is an overreaction, and the firm’s long-term thesis of deleveraging remains intact. Although the firm has lowered its Q1 DTC net ads forecast from 2M to 1M, with 1.5M domestic ads and 500,000 international losses, Wells Fargo maintains an Overweight rating and a $20 price target on the shares as of April 14, ahead of Warner Bros. Discovery, Inc.’s upcoming Q1 report.

According to Insider Monkey’s fourth quarter database, 60 hedge funds were bullish on Warner Bros. Discovery, Inc., compared to 61 funds in the prior quarter.

Artisan Value Fund made the following comment about Warner Bros. Discovery, Inc. in its Q4 2022 investor letter:

“Warner Bros. Discovery, Inc. is a global media and entertainment company that is the result of the 2022 merger of Discovery and WarnerMedia. Warner is known for its theatrical releases, networks (CNN, TNT, TBS) and pay television network HBO and related over-the-top streaming service HBO Max. The legacy Discovery business distributes content across US and international networks—such as HGTV, Discovery, TLC, Food Network and Animal Planet—as well as its own streaming service Discovery+. We believe the total portfolio of content and entertainment assets should provide a compelling direct-to-consumer offering to attract viewers and the scale to invest in original content. There is a lot of opportunity, but there’s also uncertainty related to the merger’s integration and realized cost synergies. These questions, in addition to a challenging macro environment for advertising and foreign exchange headwinds, have been overhangs on the stock price.

Further, media and entertainment stocks have come under pressure due to skepticism about the industry’s long-term economics. Our view is streaming is a scale and intellectual property business that will result in a few large winners, and we believe HBO Max will be among this group. WBD looks like a bargain, selling at a double-digit FCF yield.”

2. The Walt Disney Company (NYSE:DIS)

Number of Hedge Fund Holders: 99

The Walt Disney Company, together with its subsidiaries, operates as an entertainment company worldwide. The company produces and distributes film and TV content, and operates television networks and studios under multiple brands, including ABC, Disney, ESPN, Freeform, FX, Fox, National Geographic, and Star. Additionally, The Walt Disney Company offers several direct-to-consumer streaming services such as Disney+, Disney+ Hotstar, ESPN+, Hulu, and Star+. It is one of the best entertainment stocks to consider.

On April 11, Guggenheim reiterated a Buy recommendation on The Walt Disney Company but trimmed the price target on the shares from $140 to $130. The firm’s evaluation of the visitation trends for Disney’s parks and resorts indicates that there is a slowdown in growth. Based on this information, Guggenheim has adjusted its projection for the company’s near-term trends and subsequently lowered its target on Disney shares.

According to Insider Monkey’s fourth quarter database, 99 hedge funds were bullish on The Walt Disney Company, compared to 112 funds in the prior quarter. Nelson Peltz’s Trian Partners held a significant stake in the company, comprising over 9 million shares worth $784.5 million.

VGI Partners made the following comment about The Walt Disney Company in its 2022 annual investor letter:

“The Walt Disney Company is a diversified media conglomerate operating media networks, theme parks, film and TV studios and direct-to-consumer streaming services. It is the global leader in theme parks with hotels and cruise lines aimed at families. Key assets within Disney are the instantly recognisable entertainment franchises that have multiple avenues of monetisation such as Mickey Mouse, Star Wars, ABC and Marvel’s Avengers.

Disney’s share price declined due to a number of factors in 2022, presenting us the chance to purchase a long-admired business and its unique collection of valuable intellectual property assets at what we consider to be a very attractive valuation. Summarily, the EPS of Disney has declined from US$7 in 2018 to ~US$2.60 in 2022 but we believe that the earnings power of the assets has not diminished to anywhere near this extent.

Disney is currently undergoing a business transition within the Media and Entertainment Distribution division (DMED) from traditional media property distribution via third parties (i.e. cinemas and broadcast networks) to a Direct-To-Consumer (DTC) model via the Disney+ streaming service. A key element of our thesis is that the earnings power of the company is currently being masked by the marketing and content investments within Disney+ and that this will normalize over the next several years. To put this in perspective, Disney+ (DTC sub-segment) currently generates operating losses of over US$3.3bn (a negative 14% operating margin) compared to operating margins at its nearest streaming competitor, Netflix, of +15.5%…” (Click here to read the full text)

1. Netflix, Inc. (NASDAQ:NFLX)

Number of Hedge Fund Holders: 117

Netflix, Inc. is one of the best entertainment stocks to watch. In the fourth quarter of 2022, Netflix, Inc. gained 7.66 million new subscribers, bringing its total number of paid memberships worldwide to 230.75 million.

On April 14, Dan Salmon, an analyst at New Street, increased the firm’s price target on Netflix, Inc. from $320 to $333, while maintaining a Neutral rating on the shares. The firm surveyed 942 U.S. Netflix users to understand their payment and cancellation habits, the popularity of the new Basic with Ads tier, and their potential response to password sharing restrictions. According to the survey, 54% of non-payers would be willing to pay for their own membership if their access was canceled, and 70% would choose a non-ad supported tier. The analyst believes that these results indicate a positive outcome for Netflix, Inc.’s password restrictions when they are introduced to the market and could be successful globally.

According to Insider Monkey’s fourth quarter database, 117 hedge funds were bullish on Netflix, Inc., compared to 115 funds in the prior quarter. Boykin Curry’s Eagle Capital Management is a prominent stakeholder of the company, with 5.15 million shares worth $1.5 billion.

LVS Advisory made the following comment about Netflix, Inc. in its Q1 2023 investor letter:

“We initiated our investment in Netflix, Inc. during the summer of 2022 (discussed in our Q3 2022 letter). Netflix was a baby thrown out with the bath water by the market last year. We found Netflix attractive because the company signaled that it would hold expenses flat while better monetizing its account base via an advertising tier and paid sharing. Despite an impeccable track record of execution, the market didn’t believe Netflix could navigate this transition. While the market now appears to buy into the expense story the market doesn’t fully appreciate the revenue growth story that will play out from the new monetization initiatives. Furthermore, the stock’s pullback during the banking crisis provided an attractive entry point for us to make Netflix an overweight position.”

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