Hollywood Stocks 2025: Winners, Losers, and Surprises

In 2024, some Hollywood companies saw positive growth thanks to streaming profits and potential deals on the horizon. Fast forward to 2025, and we saw major mergers take place. However, concerns about the long-term sustainability of streaming profits, shifts in cable network performance, and the rise of AI technology left investors feeling uncertain.

Overall, the U.S. stock market had a good year in 2025, with the S&P 500 stock index increasing by 17.5%. However, the media and entertainment industry had a more mixed experience.

Looking ahead to 2026, Morgan Stanley analyst Benjamin Swinburne foresees generative AI as a major force that will shape the entertainment landscape. This technology has the potential to drive innovation, expand margins, but also introduce uncertainty around audience behavior and competition.

Beyond AI, Swinburne highlights two other trends to watch in the new year: ongoing streaming market improvements through industry consolidation and strong growth in advertising revenues and consumer spending on premium entertainment.

Now, let’s talk about how 2025 played out for media, entertainment, and related stocks. Fox Corp., Imax, Roku, and Spotify were among the top performers, experiencing gains. Meanwhile, Netflix’s stock price saw only a slight increase as investors analyzed the company’s potential expansion into traditional Hollywood activities.