Wednesday’s performances by Starz and Disney shares represented a bright spot in an otherwise murky 2025 for media stocks.
Starz, which just finalized its separation from Lionsgate and began trading on the Nasdaq, jumped 40% to finish its first day as a stand-alone public company at $11.20. The programmer, which began as a linear TV network purveyor and now gets more than two-thirds of its revenue from streaming, announced its split from Lionsgate earlier Wednesday after eight years under the same corporate roof. Starz execs will gather at the Nasdaq Market Site on Friday for an official bell-ringing ceremony.
Disney, meanwhile, climbed nearly 11% – a big move for the large-cap Dow component – to end the session at $102.09. It was the first time since the end of March that the stock has closed above the $100 mark. It came into Wednesday trading down 17% for the year. The company topped analysts’ expectations for its fiscal second quarter and also revealed it is building a new theme park in Abu Dhabi.
Tech stocks, while they have largely pulled out of the free fall prompted last month by Donald Trump’s tariff proposals, continue to show vulnerability. Shares of Google parent Alphabet slumped 7.5% after Apple exec Eddy Cue testified during the antitrust trial in which the government is pursuing a breakup of Google. According to a report by Bloomberg, Cue said Apple is looking at possibly adding Perplexity or other AI search engines to its default Safari web browser, which would be a blow to Google.
The overall markets were calmer than in many recent days, with the Dow, Nasdaq and S&P 500 all posting fractional gains. The more sedate day was welcome news for the battered entertainment sector, which began the week in the eye of the latest storm from Washington. In addition to broad tariffs being applied to dozens of countries and across many industries, Hollywood found itself the target of Donald Trump’s latest tariff push. At the behest of the president, actor John Voight has spearheaded a plan to “make Hollywood great again,” and the scheme would involve tariffs of more than 100% on non-U.S. productions. The TV business could also be upended, with Voight’s plan pushing a return of “fin-syn” regulations.
