A Wall Street entertainment analyst explains what the return of sports means for media stocks — and breaks down a top pick for the 2nd half of 2020
- Tuna Amobi, senior
mediaand entertainmentequity analyst at CFRA said the return of sportswill slow cord-cutting as viewers flock to live-TV games.
- Amobi said the lockdown caused a "pent-up demand" to watch sports.
- The entertainment analyst said
Comcastremains one of his favorite names right now.
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Tuna Amobi, senior media and entertainment equity analyst at CFRA, said the return of sports will help media companies that stream games. Sports are the "major glue that holds the paid-TV ecosystem together," he told CNBC's "Squawk Box" on Friday.
The entertainment analyst said this appetite for live sports will decelerate the cord-cutting caused by the COVID-19 lockdown. He added, "People are likely to subscribe to paid-TV when you have the leagues back."The
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Amobi holds a "strong buy" rating for Comcast, and "buy" ratings for major media companies Disney, ViacomCBS, and Fox. Comcast is one of his "favorite names right now," due to its better-than-expected performance last quarter. While Comcast's theme parks, advertising, and film studio were "whacked" by the pandemic, he said other areas of the company, like its internet service, have performed well throughout."The next few quarters provide some volatility, but the core cable business led by high-speed broadband continues to outperform expectations," he said.