A 7-Day Winning Streak Has Liberty Media Stock Up 22%
Shares of Liberty Media (FWONA) have closed higher in each of the last 7 sessions, a cumulative gain of 22.0%. That added about $4.7 billion to the company’s market value, which now stands at about $26.1 billion. The stock closed at $103.87 on Tuesday, November 10, its highest close of the past year.
The Streak Next To The S&P 500
Returns for FWONA and the S&P 500 over the streak and the periods around it, all ending Tuesday, November 10 and including dividends:
| Return Period | FWONA | S&P 500 |
|---|---|---|
| 1 Day | 1.0% | -0.4% |
| 7 Days (Current Streak) | 22.0% | -0.8% |
| 1 Month (21 Trading Days) | 20.2% | -3.6% |
| 3 Months (63 Trading Days) | 9.7% | -2.7% |
| Year To Date | 16.2% | 10.9% |
| 1 Year (252 Trading Days) | 12.6% | 13.1% |
Is This Move About Liberty Media Or The Market?
The market explains little of this: the S&P 500 lost 0.8% over the same 7 sessions, including dividends, against Liberty Media’s +22.0%. Over the past three months the stock is up 9.7%, a window that includes the streak; over the other 56 sessions of that window it was down 10.1%.
What The Numbers Say About The Rally
On the fundamentals, revenue grew 10.9% over the last twelve months, against a median of 9.1% for S&P 500 Communication Services stocks; its operating margin is 13.3%, versus a median of 21.1%; and the stock trades at 46.7 times trailing earnings against a median of 17.7. The numbers make the run harder to justify: margins below the median and a multiple well above the median. At this price, the stock is asking a lot of the business.
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