As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at digital media & content platforms stocks, starting with WEBTOON (NASDAQ:WBTN).
AI-driven content creation, personalized media experiences, and digital advertising are evolving, which could benefit companies investing in these themes. For example, companies with a portfolio of licensed visual content or platforms facilitating direct monetization models could see increased demand for years. On the other hand, headwinds include growing regulatory scrutiny on AI-generated content, with many publishers balking at anything that gets no human oversight. Additional areas to navigate include the phasing out of third-party cookies, which could make traditional ways of tracking the online behavior of consumers (a secret sauce in digital marketing) much less effective.
The 7 digital media & content platforms stocks we track reported a mixed Q2. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.
Luckily, digital media & content platforms stocks have performed well with share prices up 15.7% on average since the latest earnings results.
WEBTOON (NASDAQ:WBTN)
Pioneering a vertical-scrolling format optimized for mobile devices, WEBTOON Entertainment (NASDAQ:WBTN) operates a global platform where creators publish serialized web-comics and web-novels that users can read in bite-sized episodes.
WEBTOON reported revenues of $348.3 million, up 8.5% year on year. This print exceeded analysts’ expectations by 2.2%. Overall, it was a very strong quarter for the company with a beat of analysts’ EPS estimates and revenue guidance for next quarter topping analysts’ expectations.
Junkoo Kim, Founder and CEO, said, “We are pleased to report strong second quarter results, with both revenue and Adjusted EBITDA coming in above the top end of our guidance range. Total revenue was up 5.5% on a constant currency basis, with growth in all three revenue streams – Paid Content, Advertising, and IP Adaptations – as we continue to build our leadership position globally.”
Interestingly, the stock is up 56.6% since reporting and currently trades at $14.66.
Best Q2: Stride (NYSE:LRN)
Formerly known as K12, Stride (NYSE:LRN) is an education technology company providing education solutions through digital platforms.
Stride reported revenues of $653.6 million, up 22.4% year on year, outperforming analysts’ expectations by 4.2%. The business had a stunning quarter with a beat of analysts’ EPS estimates.
Stride scored the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 28.5% since reporting. It currently trades at $165.
Is now the time to buy Stride? Access our full analysis of the earnings results here, it’s free.
Rumble (NASDAQ:RUM)
Founded in 2013 as a champion for content creator rights and free expression, Rumble (NASDAQ:RUM) is a video sharing platform that positions itself as a free speech alternative to mainstream platforms, offering creators more favorable revenue-sharing opportunities.
Rumble reported revenues of $25.08 million, up 11.6% year on year, falling short of analysts’ expectations by 6.3%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.
Rumble delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 6.8% since the results and currently trades at $7.36.
Read our full analysis of Rumble’s results here.
Getty Images (NYSE:GETY)
With a vast library of over 562 million visual assets documenting everything from breaking news to iconic historical moments, Getty Images (NYSE:GETY) is a global visual content marketplace that licenses photos, videos, illustrations, and music to businesses, media outlets, and creative professionals.
Getty Images reported revenues of $234.9 million, up 2.5% year on year. This print was in line with analysts’ expectations. Overall, it was a strong quarter as it also produced a beat of analysts’ EPS estimates and full-year revenue guidance meeting analysts’ expectations.
Getty Images had the weakest full-year guidance update among its peers. The stock is up 6.4% since reporting and currently trades at $1.83.
Read our full, actionable report on Getty Images here, it’s free.
Ziff Davis (NASDAQ:ZD)
Originally a pioneering technology publisher founded in 1927 that became famous for PC Magazine, Ziff Davis (NASDAQ:ZD) operates a portfolio of digital media brands and subscription services across technology, shopping, gaming, healthcare, and cybersecurity markets.
Ziff Davis reported revenues of $352.2 million, up 9.8% year on year. This result surpassed analysts’ expectations by 4.5%. It was a very strong quarter as it also recorded a solid beat of analysts’ full-year EPS guidance estimates and a beat of analysts’ EPS estimates.
Ziff Davis scored the biggest analyst estimates beat and highest full-year guidance raise among its peers. The stock is up 22.9% since reporting and currently trades at $38.21.
Read our full, actionable report on Ziff Davis here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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