"Investors have warmed to the idea of these large media companies embracing digital platforms and succeeding," said Amobi, who has a "strong buy" rating on CBS, and "buy" ratings on Viacom and Time Warner.
Of course, valuation is a concern for investors wondering whether to jump into these stocks. Viacom, despite expectations that sales declined in the first three months of the year, is trading at 15.3 times earnings, near its most expensive since May 2008. Time Warner is boasting a similar profile. The owner of CNN is trading at 17.9 times current earnings, its highest since December 2009. CBS, meanwhile, trades at 18.6 times, its highest since June.
As for Facebook (FB), the world's largest social media platform has lost 28% in the past 12 months. Shares closed at $27.77. Ah, the promise of social media.
Written by Leon Lazaroff in New York