Back to top

Image: Bigstock

AT&T-Time Warner, Media Stocks in Focus: NFLX, DIS, CMCSA | Free Lunch

Read MoreHide Full Article

On today’s episode of Free Lunch, Associate Stock Strategist Ryan McQueeney discusses the AT&T-Time Warner merger in the immediate aftermath of a federal judge’s decision to approve the deal. Ryan also explains why this will affect ongoing talks between Disney, Comcast, and Fox. Later, the host takes a closer look at Netflix after the video streaming company received its most bullish analyst call to date.

Want more video content from Zacks? Subscribe to Zacks Investment News now!

Free Lunch is the newest show from Zacks Investment Research. It is streamed live, four times per week, and features breaking news and analysis from Zacks strategists. Free Lunch is available on YouTube, Facebook Live, Twitter, Ustream, and more.

The telecom and media industries are buzzing today after a federal judge approved AT&T’s (T - Free Report) monumental $85 billion merger with Time Warner . The cellular and broadband network behemoth will now be able to leverage its distribution infrastructure with Time Warner’s deep library of original content, including HBO, Warner Bros., and Turner Broadcasting.

Ryan explains why this new positioning is a strategic advantage for AT&T in today’s evolving media and entertainment world.

The deal will also have ramifications for others looking to make major M&A moves in this space—especially Disney (DIS - Free Report) , Comcast (CMCSA - Free Report) , and 21st Century Fox (FOXA - Free Report) . Disney has already made its bid for certain Fox assets, but since this merger has been approved, many believe Comcast will make a counteroffer soon. Ryan explains why the stakes are so high for these companies right now.

Finally, Ryan takes a closer look at Netflix (NFLX - Free Report) , another company that will be affected by the AT&T-Time Warner deal. But Netflix was trending this morning after Goldman Sachs slapped an incredibly bullish price target on the stock, suggesting that its original content initiatives have pathed the way for a successful future.

Ryan discusses this bullish analyst call and launches into a conversation about Netflix’s valuation history, price performance, earnings estimate trends, and margin improvements. Make sure to check out the show to hear more!

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>