Can President Donald Trump’s attacks on the NFL tank media stocks?
One Wall Street strategist says count on it.
JPMorgan Chase & Co.’s Shawn Quigg is encouraging investors to bet against CBS Corp. stock ahead of this weekend’s NFL broadcasts. The bank recommends buying an option that gives you the right to sell the shares at $57.50 on the likelihood that the stock will fall below that price after the company discloses ratings for the games. CBS closed at $58 on Tuesday.
Trump began encouraging fans last week to boycott NFL games, arguing that players were unpatriotic and should be fired for kneeling during the national anthem. The practice of going down on one knee during the anthem was started by former San Francisco 49ers quarterback Colin Kaepernick as a protest against police brutality and mistreatment of black Americans.
Fans didn’t follow the president’s pleas last weekend, when overall ratings were higher than a year earlier.
So far, media investors don’t appear worried. Shares of CBS, which said ratings for last Sunday’s games were up 4 percent from a year earlier, have changed little this week. JPMorgan analyst Alexia Quadrani has an “overweight,” or buy rating, on CBS, with a target price of $75.
Also, here’s the official “I Proudly Stand For The Anthem” t-shirt (we have hoodie and v-neck options, too!) that has part of the proceeds going to the National Coalition of Homeless Veterans!