In a landscape marked by advertising market volatility, the evolving profitability of streaming services, and fierce competition from technology giants, investment experts from Wall Street are offering their highly anticipated projections for Hollywood's stock performance in the coming year. While numerous media conglomerates face significant hurdles, certain companies are poised for notable growth, driven by unique market advantages, strategic innovation, and major upcoming releases.
Anticipating Hollywood's Investment Landscape in 2026
As the curtain falls on 2025, financial gurus across Wall Street have unveiled their top picks for media and entertainment stocks, pinpointing entities that they believe are set to thrive in 2026. This year's forecasts reveal a mix of cautious optimism and strategic plays, emphasizing undervalued assets and companies with strong catalysts on the horizon.
Renowned analyst Craig Moffett of MoffettNathanson champions Charter Communications, describing it as an exceptionally undervalued stock. Despite investor skepticism regarding cable companies' resilience against fiber overbuilds and fixed wireless access, Moffett asserts that cable providers, particularly Charter, are better positioned for the convergent future of mobile and broadband services. He points to Charter's revitalized video offering and anticipated free cash flow generation exceeding $100 per share by 2026, driven by capital expenditure reductions and stock buybacks following the Liberty Broadband merger. Moffett has issued a 'buy' rating with an ambitious price target of $700.
Meanwhile, Doug Creutz from TD Cowen identifies Take-Two Interactive Software as a premier global video game operator with an exemplary long-term track record. The impending November 2026 release of Grand Theft Auto VI, alongside a robust pipeline of other titles and continued strong performance from mobile gaming and NBA 2K, are cited as significant growth drivers. Creutz highlights the increasing dominance of major franchises in the AAA gaming industry and expects GTA VI to be a primary beneficiary, setting a 'buy' rating and a $284 price target. He also notes that if not for GTA VI, his top recommendations would be music giants Universal Music Group and Warner Music Group, predicting a strong 2026 for record labels due to contract escalations, AI-driven revenue, and specific company catalysts.
Benjamin Swinburne of Morgan Stanley maintains a preference for scaled platforms in streaming, music, and live entertainment, advocating for Spotify, Disney, Netflix, and Live Nation. He believes that AI will reinforce these platforms while disrupting creative labor and content commoditization. Swinburne assigns 'overweight' ratings to Netflix and Spotify, foreseeing them as long-term beneficiaries of AI-driven personalization and operational efficiency. His analysis also notes Netflix's bold acquisition of Warner Bros. and HBO as a move to strengthen streaming leadership, despite inherent risks. For Spotify, he praises product innovation driving user growth and engagement, supporting projections for robust revenue and earnings growth. Disney, with a $140 price target, is expected to benefit from streaming market recovery and AI investments, particularly in its Disney+ and ESPN services, with its experiences segment remaining resilient to AI disruption. Live Nation is also considered safe from AI's impact, due to the enduring appeal of live experiences, with a $170 price target.
Peter Supino from Wolfe Research designates Live Nation Entertainment as his 'top idea,' despite a challenging 2025, emphasizing the strong long-term supply/demand dynamics of the live entertainment sector. He finds the company's market valuation undervalued given its industry leadership, rating it 'outperform' with a $175 price target. Supino also shows confidence in Spotify, anticipating that pricing benefits and sustained volume growth will offset gross margin pressures, and maintains a bullish stance on the broader music industry. His final pick is Disney, acknowledging complexities in diversified entertainment but highlighting positive long-term direct-to-consumer trajectory and the revival of theme parks and cruises.
Michael Morris of Guggenheim, while not explicitly naming it a 'top pick,' increased his price target for Roku to $115 with a 'buy' rating. He believes Roku possesses essential connected TV building blocks and revenue drivers that will lead to above-consensus growth and increased investor confidence. Factors such as rising CTV advertising demand, expanding partnerships including Amazon, new revenue streams from off-platform inventory data fees, and cost discipline underpin his optimism. Morris also points to potential incremental contributions from events like the Winter Olympics and increased ad spend related to political campaigns and the World Cup.
Finally, Lance Vitanza of TD Cowen hails TKO Group as one of his firm's 'best ideas for 2026,' boosting its price target to $245 with a 'buy' rating. He underscores TKO's exposure to rising sports rights values, supported by contracted revenue, expanding margins, and strong free cash flow. Recent renewals for UFC and WWE, along with new initiatives like boxing, are expected to strengthen its growth outlook. Vitanza highlights TKO's iconic status, massive global fan base (UFC and WWE reaching nearly a billion households each), and its ability to create "must-watch" live content for diverse audiences. He foresees substantial revenue upticks from media rights renewals and praises TKO's management team, concluding that the company is evolving into a durable and monetizable global sports-rights platform.
Ralph Schackart from William Blair is bullish on Meta Platforms, identifying advertising and artificial intelligence as key growth engines. Meta's core advertising business is performing well, with revenue accelerating due to AI recommendation engine improvements and growth in various ad formats. Schackart emphasizes the AI upside, believing Meta is positioned as a long-term beneficiary given its investments in infrastructure and talent. However, he notes that investors still need more convincing on the AI outlook, stressing the need for companies to demonstrate a return on investment for their significant capital expenditures in AI.
The media and entertainment sector stands at a fascinating crossroads, with traditional models being reshaped by technological advancements and evolving consumer behaviors. These expert predictions underscore a strategic shift towards companies that are agile, innovative, and capable of leveraging new technologies like AI, or those with robust, intrinsically valuable content and experiences. For investors, the message is clear: while caution is warranted, targeted opportunities for substantial growth exist for those willing to look beyond conventional wisdom and embrace the industry's dynamic future.