Four communications companies to watch in September 2021

 

The communication industry has undergone significant transformations in recent years, driven by the rise of social media, streaming platforms, and the increasing importance of connectivity. Traditional telecommunication companies like T-Mobile US Inc (NASDAQ: TMUS) and Verizon Communications Inc. (NYSE: VZ) continue to play essential roles, but the landscape has evolved considerably. Streaming services, such as Netflix Inc (NASDAQ: NFLX) and Roku Inc (NASDAQ: ROKU), have experienced explosive growth, especially during the COVID-19 pandemic. The potential within the communication industry remains vast, especially considering the relatively young age of the streaming sector.

Here are four communication stocks in the spotlight this week:

1. 1. Nexstar Media Group Inc (NASDAQ: NXST): Nexstar is a television and digital media company focused on developing and operating television stations and interactive community websites in the U.S. Despite trading relatively sideways this year, the stock has shown impressive growth, rising over 50% in the past year. In its recent second-quarter earnings report, Nexstar achieved a record net revenue of $1.13 billion, marking a 23.7% year-over-year increase. With its commitment to digital expansion, such as the launch of the “SportsGrid Network” in partnership with SportsGrid Inc., Nexstar is poised for continued growth.
   
   
   
   2. 1. Snap Inc (NYSE: SNAP): Snap, known for its popular social media app Snapchat, has been focusing on augmented reality (AR) to engage users and advertisers. The company recently hired Konstantinos Papamiltiadis, formerly of Facebook, as Vice President of Platform Partnerships to recruit more AR creators and encourage businesses to adopt Snap’s technology. In its recent earnings report, Snap showed significant growth, with second-quarter revenue reaching $982 million, up 116% year-over-year. Daily active users also increased by 23% year-over-year, reinforcing Snap’s position as a leader in AR-based communication.
      
      
      
      2. 1. Zoom Video Communications Inc (NASDAQ: ZM): Zoom Video Communications became a household name during the COVID-19 pandemic, as its video communication platform played a crucial role in remote work and communication. Morgan Stanley analyst Meta Marshall recently upgraded the stock to “Overweight” and raised the price target to $400, citing potential catalysts like the Zoomtopia customer event in September. Zoom continues to innovate with offerings like Zoom Apps and Zoom Events, making it a significant player in the evolving communication landscape.
         
         
         
         2. 1. DISH Network Corp (NASDAQ: DISH): DISH Network operates in both Pay-TV and Wireless segments, with a focus on the deployment of 5G networks. In the second quarter, the company reported impressive revenue growth of 40.8% year-over-year, reaching $4.49 billion. DISH Network closed the quarter with 10.99 million Pay-TV subscribers, highlighting its continued improvement across the board. The recent agreement with WarnerMedia to offer HBO Max, HBO, and Cinemax premium networks to DISH TV customers nationwide adds to its appeal.
            
            
            These communication stocks represent various facets of the industry, from traditional television to innovative AR-based social media and video communication platforms. As the communication landscape continues to evolve, these companies are well-positioned to capture growth opportunities.
            
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