Should Investors Be Watching These Top Streaming Stocks Now?
While most of 2020’s top growth names have lost some momentum in the stock market this year, investors may want to consider streaming stocks. Sure, the pandemic lit a massive flame under the streaming industry overall. This is because most consumers were stuck at home and video streaming provided for their entertainment needs. Fast forward to over a year later, we have and continue to see the meteoric rise of contenders entering this space. Indeed, while some would argue that said companies would be trend chasers, the streaming industry could continue this momentum post-pandemic.
If anything, the coronavirus outbreak only accelerated pre-existing cord-cutting trends. Streaming services simply appeal more to consumers in this current age of media consumption. Simply put, would you rather pay expensive fees for a bunch of channels you don’t watch, or pay less for more curated content overall? As most would likely go for the latter, the current hype around the streaming industry and top streaming stocks makes sense.
Evidently, organizations and investors alike clearly recognize the potential in the streaming market now. Just last week, media giants AT&T (NYSE: T) and Discovery (NASDAQ: DISCA) shook the industry with their latest announcement. Namely, AT&T’s WarnerMedia division is now part of Discovery’s entertainment portfolio thanks to a $43 billion deal. Not only does this mark another prominent player in the streaming wars, but it also incentivizes more competition moving forward. As such, here are four top streaming stocks to watch in the stock market today.
Best Streaming Stocks To Watch Right Now
- Amazon.com Inc. (NASDAQ: AMZN)
- FuboTV Inc. (NYSE: FUBO)
- Walt Disney Company (NYSE: DIS)
- Netflix Inc. (NASDAQ: NFLX)
Amazon is a streaming service company that also focuses on a wide portfolio of tech products and services. It is also one of the most valuable retailers in the U.S. by market capitalization. Its streaming service known as Amazon Prime Video is an over-the-top streaming and rental service that boasts over 20,000 movies and over 2,100 shows to choose from. AMZN stock currently trades at $3,276.00 as of 2:03 p.m. ET. Today, the company released a piece of news that has gotten the attention of investors and analysts alike.
Amazon announced that it signed an agreement to acquire Metro Goldwyn Mayer (MGM) for a purchase price of $8.45 billion. MGM has a vast library of over 4,000 beloved film titles which include James Bond and Silence of the Lambs. It also has over 17,000 TV shows that have collectively won more than 180 Academy Awards and 100 Emmys. The real financial value behind this deal is also the treasure trove of IP in the deep catalog that Amazon plans to reimagine and develop together with MGM‘s team. For these reasons, will you consider adding AMZN stock to your watchlist?
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Fubo is a sports-first live streaming company that aims to provide the greatest breadth of premium sports content, interactivity, and integrated wagering. The company leverages its proprietary data and technology platform that is optimized for live TV and sports viewership to turn passive viewers into active participants through a newly defined category of interactive television. FUBO stock currently trades at $23.93 as of 2:03 p.m. ET.
Today, the company announced additional programming details around its exclusive live streaming rights to the Qatar World Cup 2022 Qualifying matches of South American Football Confederation (CONMEBOL). Fubo will launch a dedicated CONMEBOL experience where subscribers can seamlessly stream all qualifying matches and shoulder programming.
Earlier this month, the company also reported a record first-quarter revenue of $119.7 million, up by 135% year-over-year. Advertising revenue for the quarter was $12.6 million, up 206% year-over-year. Impressively, it also doubled its subscribers to 590,430, including 43,000 net additions for the quarter. Given all of this, is FUBO stock worth watching right now?
Walt Disney Co.
Disney is a diversified multinational mass media and entertainment conglomerate that is headquartered in California. The company’s streaming service Disney+ has taken the world by storm and the company has invested significantly in it especially when the pandemic halted its Disney World entertainment resorts. DIS stock has doubled since the pandemic first hit in March last year. On May 13, 2021, the company reported its second quarter and six months earnings for Fiscal 2021.
In it, Disney posted a diluted earnings per share of $0.50. Revenue for the quarter was $15.61 billion. A majority of this revenue came from its Disney Media and Entertainment Distribution, at $12.44 billion.
“We remain focused on ramping up our operations while also fueling long-term growth for the Company,” said Bob Chapek, Chief Executive Officer. “This is clearly reflected in the reopening of our theme parks and resorts, increased production at our studios, the continued success of our streaming services, and the expansion of our unrivaled portfolio of multi-year sports rights deals for ESPN and ESPN+.” All things considered, is DIS stock a top streaming stock to watch?
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When talking about the streaming industry as a whole, it would be hard not to mention Netflix. Of course, the company is one of the pioneering players in the field and continues to hold a significant share of the market today. Safe to say, Netflix was firing on all cylinders at the onslaught of the pandemic.
For a sense of scale, the company added almost 26 million net new subscribers in the first half of 2020. Notably, these numbers exceed those of its previous four quarters combined. More recently, the company’s subscriber numbers have understandably dipped as competition in the industry intensifies. While NFLX stock is currently down on account of its latest subscriber figures, could it be worth investing in now?
Well, Jefferies (NYSE: JEF) analyst Andrew Uerkwitz believes so. In his recent coverage of NFLX stock, Uerkwitz hit it with a buy rating and a $620 price target. This would mark a potential upside of 23% given its current price of $503.04 as of 2:13 p.m. ET. The analyst believes that Netflix is still “the premier, must-have” option given its constant stream of award-winning original content. Also, the company could be looking to expand into the gaming industry. According to Reuters, Netflix is planning to hire an executive to oversee new gaming projects. Would all this make NFLX stock a top watch for you now?