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 Q4. 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 slower Q4. As a group, revenues beat analysts’ consensus estimates by 1.4% while next quarter’s revenue guidance was 3.5% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 10.7% 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 $352.8 million, up 5.6% year on year. This print fell short of analysts’ expectations by 1.3%. Overall, it was a slower quarter for the company with a significant miss of analysts’ EPS estimates.
Junkoo Kim, Founder and CEO, said, “2024 was an exciting year for WEBTOON Entertainment as we became a public company, expanding the global influence of our creators and IP. We’re proud to have delivered strong financial results in 2024 that prove our strategy is working, including revenue growth on a constant currency basis of 13%, driven by growth across all revenue streams – Paid Content, Advertising, and IP Adaptations – as well as record Adjusted EBITDA of $67.9 million, a growth rate of over 600%.”
Unsurprisingly, the stock is down 9.3% since reporting and currently trades at $9.10.
Is now the time to buy WEBTOON? Access our full analysis of the earnings results here, it’s free.
Best Q4: 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 $587.2 million, up 16.3% year on year, outperforming analysts’ expectations by 2.9%. The business had a very strong quarter with a solid beat of analysts’ EPS estimates.
The market seems happy with the results as the stock is up 15.7% since reporting. It currently trades at $139.59.
Is now the time to buy Stride? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: 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 $412.8 million, up 5.9% year on year, falling short of analysts’ expectations by 2.7%. It was a disappointing quarter as it posted a significant miss of analysts’ full-year EPS guidance estimates.
Ziff Davis delivered the highest full-year guidance raise but had the weakest performance against analyst estimates in the group. As expected, the stock is down 35.5% since the results and currently trades at $30.95.
Read our full analysis of Ziff Davis’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 $247.3 million, up 9.5% year on year. This print topped analysts’ expectations by 0.5%. Taking a step back, it was a softer quarter as it produced a significant miss of analysts’ EPS estimates.
Getty Images had the weakest full-year guidance update among its peers. The stock is down 8.6% since reporting and currently trades at $1.97.
Read our full, actionable report on Getty Images 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 $30.23 million, up 48.2% year on year. This result beat analysts’ expectations by 1.7%. Zooming out, it was a softer quarter as it logged revenue guidance for next quarter missing analysts’ expectations and a significant miss of analysts’ EPS estimates.
Rumble delivered the fastest revenue growth among its peers. The stock is up 2.7% since reporting and currently trades at $8.24.
Read our full, actionable report on Rumble here, it’s free.
Market Update
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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