Tech companies have had a rough 2018 on Wall Street, as have media companies. So it isn't surprising that digital media companies that operate at the junction between media and tech are also having a dismal year.
Snap Inc. (SNAP) - Get Report , which was rising 4% Friday, has dropped like a brick since its debut last year. Year to date, the stock is down 62%, and it reached an all-time low of $4.99 a week ago.
Meanwhile, media streaming company Roku Inc. (ROKU) - Get Report has dropped 41% year to date, including a more than 60% decline since it reached its 2018 high of $76.48 in early October. The stock was trading below $30 Friday. And fellow media hardware company TiVo. Corp. (TIVO) - Get Report is down 41% year to date.
Compare those performances to that of the big four legacy media companies -- CBS (CBS) - Get Report (down 26%), Disney (DIS) - Get Report (flat), Comcast Corp. (CMCSA) - Get Report (down 13%), and Fox (FOXA) - Get Report (up 40%) -- and the gap becomes clearer.
Not every tech media company was in the doldrums in 2018, however, as Netflix Inc. (NFLX) - Get Report was one of the market's best performers this year. Even though the stock has fallen sharply from its peak above $400 per share, which it reached in July, shares are still up more than 30% year to date.
"We see NFLX and GOOG (YouTube) as best positioned to benefit from a continued shift of media consumption from traditional to digital given the breadth/depth of their user & content ecosystems (albeit we remain Neutral rated on NFLX given current valuation, lack of visibility on medium-to-long term sub trends, content spend levels to meet competition and the impact it may have on debt levels, & overall risk-off appetite by the market)," UBS analyst Eric Sheridan wrote in a recent note.