In a 6-3 ruling the Supreme Court ruled that Aereo's service violated the Copyright Act, saying that "Aereo's activities are substantially similar to those of the [cable TV] companies." The service lets users rent access to an antenna to stream over-the-air TV to smartphones, tablets, and computers without paying retransmission fees.
As a local broadcaster that relies on retransmission fees, Nexstar Broadcasting stock is gaining following the ruling.
Must read: Warren Buffett's 25 Favorite Stocks
TheStreet Ratings team rates NEXSTAR BROADCASTING GROUP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate NEXSTAR BROADCASTING GROUP (NXST) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income and good cash flow from operations. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good."
Highlights from the analysis by TheStreet Ratings Team goes as follows: