Could these streaming giants continue to flourish in a post-pandemic world?
4 Hot Streaming Stocks To Watch Before March
Streaming stocks seem to be continuing their blazing pandemic-fueled rally even into 2021. Given that the pandemic is still going on, this would naturally be the case. As it stands, you can’t deny that top streaming stocks continue to dominate the entertainment industry in terms of subscribers. For instance, Disney’s (NYSE: DIS) streaming platform Disney+ continues to be a draw for consumers and investors alike. With its nostalgia-filled streaming portfolio, the company reported having almost 95 million paid subscribers earlier this month. Given that this figure beat its earlier 2024 estimates, investors seem keen on riding on Disney’s success. As a result, DIS stock, which was once mainly considered an epicenter stock, continues to soar to new heights.
Even tech giants such as Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) have invested in their respective streaming services. All this is great for now, but what happens when the pandemic comes to end? That is the question which investors are likely asking as vaccination efforts ramp up right now. For one thing, the current cord-cutting trends were already gaining momentum even before the pandemic hit. With the industry in the spotlight right now, it really boils down to what the top players are doing to stay relevant. Whether it is subscription promotions or creating more engaging content, I believe now would be a good time to keep watch of them. As such, here are four top streaming stocks that may be worth considering buying [or selling] on the dips.
Best Streaming Stocks To Watch
- Discovery Communications Inc. (NASDAQ: DISCA)
- Netflix Inc. (NASDAQ: NFLX)
- CBS Corporation (NASDAQ: VIAC)
- Roku Inc. (NASDAQ: ROKU)
Discovery Communications Inc.
First, we have an upcoming contender in the streaming space, Discovery. Most investors would be familiar with the mass media company that is behind the Discovery Channel and Animal Planet TV shows, among others. Strategically, the company has adapted its portfolio filled with household names to fit the streaming TV medium. Thus, Discovery+ was launched back in January. The streaming platform is currently home to some 55,000 episodes of content from the Discovery portfolio. No doubt, DISCA stock is making waves now with year-to-date gains of over 50%. Not to mention, Discovery also provided a Discovery+ update during its earnings call yesterday.
Source: TD Ameritrade TOS
Specifically, the company estimates that Discovery+ will have 12 million global paid subscribers by the end of the month. Given its ambitious goals, I can see why investors would be excited to jump on DISCA stock. But, how exactly does the company’s streaming platform size up against the competition? To begin with, Discovery+ has the edge in terms of unscripted programming. From wildlife documentaries to food and home improvement programming, content gets as real as possible. This could benefit Discovery in terms of more engagement with older consumers who are familiar with its content. Moreover, Discovery+ has already launched in India, the U.K., and Ireland, with plans for expansion into 22 other countries. All in all, do you think it is a good time to be watching DISCA stock?
Next, no top streaming stock list would be complete without the mention of Netflix. The production company has come a long way over the past few years. It is the biggest streaming platform in the world with over 203 million paid subscribers globally. Aside from housing countless mainstream movies and series, Netflix continues to find success even in its home-grown content. For example, its latest hit show is Lupin, a French heist series. In the first month of its release, over 70 million Netflix users tuned their screens towards the series. Simply put, this shows the ability of Netflix to captivate audiences regardless of language barriers. After a record year, the king of streaming does not seem to be slowing down. For investors, this could provide more reason to watch NFLX stock now.
Source: TD Ameritrade TOS
Just yesterday, there were two major announcements regarding the company. Firstly, Netflix revealed that it would be launching a new “Downloads For You” feature for mobile users. Should users enable it, the feature will automatically download recommended shows or movies onto their mobile devices. At the same time, T-Mobile (NASDAQ: TMUS) also announced that it would be including a Netflix subscription with its latest unlimited 5G data plan. Notably, the two moves would serve to maximize user retention and engagement. It would do so by recommending an endless stream of video content to consumers in 4K resolution indefinitely. Given all of this, will you be adding NFLX stock to your watchlist?
Following that, we will be looking at ViacomCBS. For the uninitiated, it is a diversified multinational mass media conglomerate. The New York-based company is another conventional entertainment player that has seen unprecedented growth throughout the pandemic. This could be, in part, thanks to its upcoming streaming platform, Paramount+. Evidently, VIAC stock is looking at gains of over 70% year-to-date. If you haven’t been keeping up with Viacom’s Paramount+ updates, now would be a good time to do so.
Source: TD Ameritrade TOS
In brief, the company announced last month that Paramount+ will be launched on March 4. The rollout will happen in the U.S., Latin America, and Canada, with a later launch scheduled in the Nordics on March 25. Additionally, the company will also be hosting an investor event after tomorrow’s closing bell to provide an overview of its plans for the platform. On top of that, Viacom also revealed that Olivier Jollet will be its new SVP of Streaming. Being bumped up from his role as SVP of emerging business in Europe, the Middle East, and Africa, Jollet brings rich digital expertise to the table. In light of all this, will you be watching VIAC stock closely?
Roku is another top streaming platform that has been making headlines lately. The company manufactures a variety of digital media players that enable video streaming. At the same time, its proprietary platform is home to several other top streaming services. The likes of which help generate revenue for Roku through subscription fees and ad revenue. As you’d expect, this has made it a go-to for investors looking to jump on the massive streaming boom now. Accordingly, ROKU stock is looking at gains of over 200% in the past year.
Source: TD Ameritrade TOS
In terms of business highlights, the company released its fiscal 2020 earnings last week. In it, Roku reported total revenue of $1.77 billion. This adds up to a 58% year-over-year increase. More importantly, its platform revenue skyrocketed by 71% over the same period, totaling $1.2 billion. In total, there were 14.3 million incremental active accounts on its platform throughout 2020, bringing its grand total active accounts to 51.2 million. If that wasn’t enough, the company’s Roku OS was the top-selling smart TV operating system sold in the U.S. with a 38% market share in 2020. With mentions of the company looking towards creating its own content, could ROKU stock still have room to run in 2021? I’ll let you decide.
Originally Posted on February 23, 2021 – 4 Top Streaming Stocks To Watch This Week
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