Do You Have These Top Entertainment Stocks On Your Watchlist? 4 In Focus
Entertainment stocks have been under the microscope lately. This is thanks to a wave of investors targeting previously heavily shorted stocks over the past two weeks. Two notable targets of this current movement are AMC Entertainment (NYSE: AMC) and GameStop (NYSE: GME). Spectacularly, the two stocks are now looking at year-to-date gains of 561% and 1,204% respectively. With all this buzz around the industry, investors could be wondering if it is worth looking out for the top entertainment stocks now.
Broadly speaking, we could be looking at great times ahead for entertainment companies. On one hand, streaming stocks and video games stocks skyrocketed as the pandemic hit last March. This sector of entertainment was particularly well-received by homebound consumers. Besides, reports said that beginning March this year, the Google Play Store will allow gambling and betting apps in 15 more countries including the U.S. That has certainly reinvigorated interest in online gambling stocks such as DraftKings (NASDAQ: DKNG). Regardless, if you are looking for the best entertainment stocks to buy now, these top names in entertainment appear keen on keeping up their momentum.
Best Entertainment Stocks To Watch
- FuboTV Inc. (NYSE: FUBO)
- Sony Corporation (NYSE: SNE)
- Spotify Technology (NYSE: SPOT)
- Roku Inc. (NASDAQ: ROKU)
Fubo is a top entertainment company that is in the limelight right now. As a prominent player in the fast-growing streaming industry, it has made strides in the past year. To point out, Fubo gained over 200,000 new subscribers last year, growing its current subscriber count by over 63%. If that wasn’t enough, the company has also seen substantial ad revenue growth, reporting a 64% year-over-year increase in its recent quarter fiscal. Notably, FUBO stock is up by over 500% over the past year. The sports streaming giant has brought many returns for investors, but, can it do so again this year?
In particular, Wedbush Securities analyst Michael Pachter raised his price target for FUBO stock from $40 to $50. Accordingly, the company’s shares shot up by over 24% during intraday trading yesterday. In line with Pachter’s outperform rating, FUBO stock closed at the price of $52.40 a share.
Analyst coverage aside, in early January, the company did provide fantastic preliminary figures for its fourth quarter. Fubo expects top-line revenue growth of 84% year-over-year and is looking at 72% subscriber growth at the same time. With the company slated to release its fourth-quarter earnings in a month, do you have FUBO stock on your watchlist?
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Following that is multinational consumer tech giant Sony. It is no surprise that SNE stock is looking at gains of over 90% since the March lows. This is because of its wide array of consumer tech that has kept the general public entertained throughout the pandemic. According to current estimates by Gaming Smart, Sony’s PlayStation 5 (PS5) captured about 65% of the global market share. If anything, this figure could be verified this week. Investors would be watching Sony closely as it is slated to report its third-quarter fiscal early on Wednesday.
Looking at its second-quarter fiscal, Sony saw a total revenue of over $20.11 billion. Adding to that, the company also reported massive year-over-year leaps of 144% in net income and 147% in earnings per share. With $12.8 billion in cash on hand by the end of the quarter, the company seems to have a solid financial position at the moment. Considering that this was before the holiday sales of its gaming console, investors are likely anticipating further gains this week.
Just yesterday, the company’s music production subsidiary, Sony Music Entertainment (SME) made a new acquisition as well. SME acquired an online music distribution firm known as A World Artists Love (AWAL) from its parent company Kobalt Music Group. Even as the company continues to dominate the gaming industry, it still has eyes on expanding its robust portfolio. Could it be a good time to watch SNE stock closely? You be the judge.
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Similar to our previous entry, Spotify is also set to release its fourth-quarter financials tomorrow before the market opens. For the uninitiated, the Swedish company is a titan in the audio streaming industry. Back in October, the company reported strong subscriber growth across the board in its third quarter. This translated to a total of 144 million premium subscribers by the end of September. As a top streaming stock, SPOT seems to have caught investors’ eyes as well with gains of over 127% in the past year. In fact, SPOT stock soared by 5.6% during yesterday’s trading session on account of its latest announcement.
Yesterday, Spotify launched its services in South Korea. This provides Korean subscribers with access to over 60 million tracks and over 4 billion playlists worldwide. As South Korea is one of the largest music markets in the world, it is a smart play by Spotify for global expansion. Important to note, South Korea is considered the music epicenter of K-Pop.
According to the company, K-Pop listening on its platform has increased by over 2000% since it debuted its first K-Pop playlist in 2014. Spotify is clearly not resting on its laurels as it enters yet another major market. With all these in mind, would you be watching SPOT stock right now?
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Finally, we will be looking at video streaming juggernaut Roku. Whether it is general consumers or tech investors, Roku has become a well-known name. First off, the company develops and markets digital streaming hardware. More importantly, it operates via its proprietary video streaming platform, Roku Channel, which facilitates a plethora of top streaming services. Through this model, Roku can earn revenue through subscriptions and ads on its platform. Simply put, it profits off of subscription services like Netflix (NASDAQ: NFLX) and Disney’s (NYSE: DIS) Disney Plus. As ROKU stock has gained by over 550% since the March selloffs, you may be curious to see if it still has room to run.
Solid year aside, the company does not seem to be slowing down anytime soon. Earlier in the month, it acquired mobile video streaming company, Quibi, expanding its streaming portfolio with Hollywood-produced content.
In more recent news, the company also picked up Amazon’s (NASDAQ: AMZN) IMDb TV streaming service last week. With over 100 million active users between the two platforms, this benefit’s both sides. Primarily, Roku will be getting a part of the ad revenue generated from the free streaming service. Could this mean another record year for ROKU stock? I’ll let you decide.