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3 Top Entertainment Stocks To Watch In November 2020

These 3 entertainment stocks are trending in 2020.

Are These The Best Entertainment Stocks To Buy In November 2020?

There are many types of entertainment stocks that have been trending in the stock market this year. Just like tech stocks, entertainment stocks have been some of the biggest gainers of 2020. But not all companies in this sector have been able to perform well this year. Companies like AMC Entertainment Holdings (AMC Stock Report) and Cinemark Holdings Inc. (CNK Stock Report) have seen the negative effects of being an in-person entertainment company this year.

The big gainers of the sector are those that are digitally involved. Streaming services sitting at the upper echelon of entertainment stocks throughout the entire year. There are tons to choose from, from HBO GO to Hulu, or Disney+ consumers have a large variety of choices. In addition to this, music streaming is at an all-time high with listeners, Spotify, and Apple Music holding the throne as the top services in that market. So with many types of top entertainment stocks performing well, let’s take a closer look at three specific companies, what they are up to, and how they are performing as we reach the end of October.

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Top Entertainment Stocks To Watch In November: Netflix Inc.

The first company on this list of the top entertainment stocks to watch is Netflix Inc. (NFLX Stock Report). Netflix is a massive entertainment company that provides media, production, and much more for consumers. As of April 2020, the company has more than 193 million paid subscriptions all around the world. This includes 73 million paid subscribers in the United States alone. As a result of the pandemic, the company has received a large influx of paid subscribers. So let’s look at why NFLX stock price is going up on the day of October 29th.

Well, on Thursday, October 29, 2020, Netflix announced that it will be increasing the prices for its standard and premium tiers of its subscription video-on-demand service. This caused investors to go crazy for NFLX stock, bringing a large uptick in its share price. This price uptick was actually rather large. NFLX stock was at $484 a share before this announcement, and now the video streaming service and production company is sitting at $504 a share as of the close on October 29th.

That is why NFLX stock has made this list of entertainment stocks to watch. This company has managed to increase its customer base and profits massively throughout 2020. The pandemic kept everyone inside, and people flocked to Netflix and its services as a form of entertainment. So it is no surprise that this entertainment company is trending this year.

Top Entertainment Stocks To Watch In November: Spotify Technology S.A.

Next up on this list of the top 3 entertainment stocks to watch is Spotify Technology S.A. (SPOT Stock Report). Spotify is an entertainment company providing an audio streaming on-demand service to most countries around the world. It offers its platform as a premium service and ad-supported services. Its application provides unlimited online and offline high-quality streaming to music and podcasts with no interruptions to premium subscribers. It also provides the same, but with ads and no offline listening to free users. As of March 2020, Spotify has more than 286 million active users and 130 million premium subscribers. Its primary competition is Apple Music, and the companies are constantly neck and neck. So let’s see what Spotify has been up to recently.

Remember than 286 million active users statistic we just provided? Well on October 29th, that number got upgraded to 320 million on October 29th. On the same date, it announced its financial results for the same quarter. Its active users’ number rose 29% year over year. Its premium subscribers also grew 27% to 144 million in the quarter, reading the top end of its guidance range. The company’s revenue also grew 14% year over year in the third quarter or 19% on a constant currency basis.

Despite this, its average revenue per user was down 10% year over year for its premium subscribers. As a result, SPOT stock is much higher than it was at the start of 2020. It began the year at around $156 a share on average, and on the day of October 29th SPOT stock price is at $266 a share on average. That is why this entertainment company and music streaming giant has made its way on to this list of the top entertainment stocks to watch.

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Top Entertainment Stocks To Watch In November: Roku Inc.

The final entertainment company on this list of entertainment stocks to watch is Roku Inc. (ROKU Stock Report). Roku is a large entertainment company that has a focus on selling digital media players to consumers. These digital media players allow for people to stream a plethora of different applications including Netflix, HBO GO, Hulu, and many more to their television that otherwise, they would not have been able to. Roku is the perfect solution for those who do not have smart TVs with application features. Back in the company’s quarterly results, it beat estimates for its profit and revenue by a large margin. Now let’s look at more recent financials and recent news for the large entertainment company that is Roku Inc.

In its second-quarter results, the company reported net revenue growth of 42% to $356.1 million. It also stated its platform revenue grew 46%. Its year-over-year active account growth went up to 41%, and 43 million active accounts being used on the platform. This has caused a lot of positive effects for ROKU stock, making it a great entertainment stock gainer in 2020.

The company’s unit sales went up 28% this year, which is no surprise as people were looking for home entertainment at large throughout the year. That is the reason that this entertainment stock and many others were able to profit as well. The entertainment sector continues to grow strong in 2020 and is expected to finish out the year that way as well.

By Brandon Michael

Brandon Michael is a financial specialist and financial contributor to the stock market. He enjoys writing about rising stocks and how the market changes over time. He specializes in multimedia and events, as well as social media management and media contributing. He has managed and marketed hundreds of events, as well as grown social media pages upwards of 200,000 followers and everything in between. As an active social media influencer in the car community, he understands how to recognize trends and curate content for niches. From an early age, Brandon was fascinated by the power of social media and how it built companies and careers for many. Over time he has developed many different strategies for different platforms on how to grow different kinds of pages. In addition to social media skills, he is passionate about events, it is second nature to him to promote them and make sure that everything is executing perfectly. This has allowed him to partner with some of the largest companies in the industry to run events for hundreds of thousands of people. Brandon has written many articles for many notable top websites for the last 3 years. His focus in his writing is generally rising stocks and emerging trends in the stock market, as well as bringing companies with market potential to the frontlines of the media. It is easy for him to identify trends and do extensive research to make sure he’s providing the most accurate research possible. In his free time, he continues to improve his research skills and financial knowledge to continue providing the best work possible.

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