MultiChoice’s share price takes a dive as JP Morgan sounds the off-air alarm

JP Morgan downgraded MultiChoice’s rating from “neutral” to “underweight”.

1. An “underweight” rating suggests that the company is expected to underperform in the next six to 12 months.
2. MultiChoice’s share price dropped nearly 13% following the rating downgrade.
3. Gryphon Asset Management highlights JP Morgan’s belief that MultiChoice will invest more in Showmax than anticipated.
4. MultiChoice has invested billions in Showmax to compete with Netflix, Disney+, and Amazon Prime Video.
5. Amazon has poached one of MultiChoice’s top executives, Gideon Khobane, to lead Prime Video Africa.
6. MultiChoice’s partnership with Comcast’s NBCUniversal and Sky forms the new Showmax Group.
7. The company’s investment in Showmax contributed to its reported loss of R2.9 billion for the financial year and the inability to pay dividends to shareholders.

Regenerate response