Streaming stocks have taken the world by storm since the onset of the pandemic. Top streaming stocks are seeing their share prices fall along with the broader market. That’s due to weak earnings results. Despite these drops, this isn’t the time to run from streaming stocks. Instead, it might be time to start putting together a wish list of your favorites to go bargain hunting.
Every year, streaming companies are investing heavily in movies, seasons, and other streaming content. The increasing audience every quarter shows the growing dominance of streaming companies.
Roku Inc. (ROKU)
Essentially, Roku Inc. (ROKU) runs a television streaming platform. It operates in two segments, Platform, and Player.
Roku’s TV models are now available through licensing arrangements with TV brands. Therefore, consumers can discover and access a variety of streaming content. Besides that, the company also offers Roku Channel. That provides its users with free access to Hollywood movies, news channels, and much more.
Roku has recently announced its latest expansion plans. The streaming platform is ready to launch its international project named Roku TV Ready™ Certification program. A few of the notable partners added during last year include Element, JVC, Pheanoo, and Phillips. The company has already integrated into the United Kingdom, Canada, and Mexico. This program was initially designed to simplify and unify the modern home theatre. So far, it seems to be a success for the company.
Moreover, Roku is setting things in the Netherlands with its first office in Amsterdam. That’s one of the key plans for the international expansion of Roku.
On top of these developments, Roku is a key distributor of its smart TV software and streaming devices at a minimal cost. That allows the company to make money instead of advertising and by managing subscriptions. By acquiring content from the now-defunct short-form video service Quibi, Roku is also making a foray into original content creation.
All these developments are a solid catalyst for ROKU’s growth in the coming years. The company is profitable and holds much more potential. ROKU streaming stocks seem to be a solid bet in the streaming world.
fuboTV Inc. (FUBO)
fuboTV Inc. (FUBO) operates a live TV streaming platform for live sports events, news, and entertainment content in the United States and Europe. FUBO is relatively a newcomer to the streaming media industry, as the company completed its IPO in the fall of 2020.
fuboTV is growing as the company is making moves into different sports. The company has already gained popularity as a live TV platform, and it’s a top option for those who want to watch live sporting events.
Building on its strength in sports media, fuboTV acquired Balto Sports in late 2020. The acquisition of Balto sport is key to jumpstart its entry into the burgeoning sports betting industry. Following that in 2021, the company acquired the sportsbook platform Vigtory. Moreover, FUBO launched its own sports betting app in November 2021 which integrates with the streaming service.
More states are passing laws allowing regulated sports wagering. fuboTV is well-positioned to become a top destination for streaming sports viewing and betting in the U.S.
Recently, the company has secured the exclusive U.S rights to stream selected matches from UEFA via FOX Sports, through a six-year sublicense. The deal will come into effect with the upcoming UEFA Nations Leagues, starting June 2022. That’s a big move for the company as it has always been targeting soccer as a key sport for streaming.
Investing in FUBO streaming stocks during its early years in the market can give you massive returns in the years to come.
Netflix (NFLX) remains by far the largest streaming pure play, with more than 200 million subscribers. New subscribers in the U.S. have slowed in recent years, but Netflix is growing quickly in the international market. Also, a prolific producer of TV shows and movies, Netflix is constantly adding content in local languages as part of its strategy to continue growth abroad. For instance, take Squid Games as one example. The Korean series has taken the streaming world by storm.
With paid streaming in over 190 countries, users can watch their favorite content. The best part is watching it without interruption from commercials. So, it should not be a surprise that NFLX is on the top of many investors’ lists.
Netflix recently announced its fourth-quarter outcomes of the previous fiscal year. The company reported an earnings surprise of 62.20%, beating the consensus estimate of $0.82. The quarterly outcomes have been staggering as far as the financials are concerned. However, the subscription growth has slowed down.
That said, Netflix is ramping up its effort to add subscribers in India. It appears that the company will be cutting prices for its subscription there. After all, it is currently behind Disney+ Hotstar and Amazon Prime Video in subscriber count in India.
NFLX streaming stocks could be a good buy holding it for the long-term.
Discovery (DISCA) is a renowned media company that provides content across various distribution platforms in almost 50 languages worldwide. The content ranges from pay television to direct-to-consumer subscription products. Some of you may be familiar with the company’s portfolio which includes brands such as Discovery Channel, Food Network, Animal Planet, and Travel Channel.
Discovery is a profitable company and DISCA looks to be a solid stock. Lately, the company obtained unconditional antitrust clearance for the acquisition of AT&T’s WarnerMedia business. The clearance was granted by European Commission to Discovery. Clearly, this is another important step closer to creating Warner Bros. Discovery. It will be a premier entertainment company that will be one of the world’s leading investors in premium content.
On top of that, Discovery along with SiriusXM is entering into a collaboration. Through this partnership, SiriusXM’s Platinum VIP subscribers will be eligible for a 12-month subscription to discovery+. It will also cover three months of discovery+ for other SiriusXM subscriptions as well. The partnership aims to create more value and more choices for consumers with subscription offers. Both companies are working on providing the best content to their viewers.
Given these exciting developments, DISCA stock seems to be a good investment in the streaming stocks sector.
The Walt Disney Company (DIS)
The Walt Disney Company (DIS) is another streaming giant that needs no introduction. The much-anticipated Disney+ streaming service was launched in late 2019. That was just before the pandemic began. The platform added tens of millions of subscribers worldwide in its first year. Disney+ became the second-largest subscription streaming service after Netflix in no time. Disney also owns the streaming services Hulu and ESPN+ in the U.S. That adds extra value to the company and brings in a major amount of revenue.
Disney has become a formidable player in the streaming TV space. Thanks to its own extensive catalog of entertainment and assets acquired from 21st Century Fox. Despite being a legacy media and entertainment company, streaming services already account for more than a third of Disney’s valuation.
Disney now ramping up its advertising spending. While Netflix’s new subscriber base is slowing down. That is creating an opportunity for the company to cement its status as a top-tier power in the streaming game. Disney’s diverse lines of business, such as theme parks and merchandise, also offer robust cash flows. That saves the company from a nasty pricing war within the streaming arena.
DIS streamming stocks sit at the bottom with their 52-week lows, and it looks attractive considering the potential it has.