Perhaps no stock's performance is more impacted by President Donald Trump's actions than Trump Media & Technology Group (DJT -10.44%). Although the Trump administration's recent tariff policies affected the entire stock market, Trump Media has specifically stated its success depends in part on President Trump's popularity. This has played out in Trump Media's share price, which zoomed up to a 52-week high of $54.68 just days before the presidential election. But economic uncertainty fueled by inflation and ...

Core Viewpoint - The entertainment sector is led by Netflix, which has a market cap exceeding $400 billion, significantly higher than its closest competitor, Walt Disney, at $152 billion. However, other companies like FuboTV may present long-term investment opportunities [1]. Group 1: FuboTV Overview - FuboTV is recognized for streaming live sporting events and has recently partnered with Disney, gaining control over Hulu+ Live TV and adding ESPN content, while Disney acquires 70% ownership in Fubo [3]. - FuboTV ended 2024 with approximately 1.7 million subscribers in North America, marking a 4% year-over-year increase, and generated record-high revenue of $1.62 billion, a 19% year-over-year increase [4]. - Despite revenue growth, FuboTV reported a net loss of $176.1 million in 2024, although this was an improvement from a net loss of $287.9 million in 2023 [5]. Group 2: Netflix Overview - Netflix reported a strong first-quarter earnings growth of 13% year-over-year, reaching $10.5 billion in revenue and a net income of $2.9 billion, up from $2.3 billion the previous year [6]. - In 2024, Netflix achieved $39 billion in sales, a 16% year-over-year increase, with net income rising to $8.7 billion, a 61% increase over 2023 [7]. - The company anticipates revenue of at least $43.5 billion in 2025, continuing its trend of double-digit growth [9]. Group 3: Investment Comparison - FuboTV's price-to-sales (P/S) ratio is below 1, indicating that investors are paying less than $1 for every $1 of revenue, suggesting the stock is undervalued [10][12]. - In contrast, Netflix's P/S ratio has increased over time, indicating a higher valuation, but FuboTV's low valuation is attributed to its high subscriber-related costs, which accounted for 84% of its 2024 sales [12][14]. - Netflix's cost of revenue was 54% of total sales in 2024, reflecting a more favorable economic position compared to FuboTV [14].