Disney+ (Plus) and the Top Streaming Stocks to Buy in 2019

The streaming space is becoming more and more competitive as Apple and Disney have now launched their streaming service. A few days ago, Disney+ announced it signed up 10 million subscribers on a single day, the first day it launched.

Amazon Prime and Netflix are also strong players with a good offering of original content. They also have the advantage of already being popular for several years. The secular trend of moving from cable to streaming still poses a big opportunity for growth and the battle to get market share is expected to become more intense.

Top Streaming Stocks

Apple (AAPL-Q)
The recent launch of Apple+ was received with mixed results but there are more original content in the pipeline. The transition from hardware to service is coming along nicely and many analysts still consider it a buy or a top pick.

Apple Inc (AAPL-Q) — Stockchase

Scores 3/10 for value, but 8/10 in fundamentals. The street sees 8% upside. They last beat earnings, but net income took a hit from a one-time European tax. IPhone sales surged 6% and there's a new IOS 18 update with AI features. All good. Are shifting from hardware to more profitable software, which is smart.…

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Walt Disney (DIS-N)
Disney+ launched on November 12 to much anticipation. They reported good numbers from their Dutch test. The company can leverage their content to attract subscribers and are the best equipped to compete with Netflix.

Walt Disney Co. (DIS-N) — Stockchase

ESPN is now stable, their movies are on fire, their cruises are coming, but theme park attendance is hurting them. Also, he wishes they would clarify how much they owe Comcast for Hulu. Shares are up lately, but not enough.

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Netflix Inc. (NFLX-Q)
One of the first largely known streaming service across the world. There are concerns of increased competition in the space and analysts are worried the company is losing its first mover advantage. Nevertheless, cable cutting trends will help Netflix gain additional subscribers.

Netflix Inc. (NFLX-Q) — Stockchase

Today, they reported their best quarter ever: 15% revenue growth, subscriber growth 14% and they beat. They can invest grow at the same time. Their library is rich. It's expensive, but streaming live sports over the holidays will be a major catalyst. Has a 30% growth rate which justifies the high valuation. 

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Amazon.com (AMZN-Q)
A very diverse company that offers streaming through it’s Amazon Prime Video service. The subscription segment is growing and paying off, allowing them more consistent and growing revenue.

Amazon.com, Inc. (AMZN-Q) — Stockchase

Buy on a serious pullback. They had 19% growth in AWS as well as ads. They can deliver prescription drugs within a day to half the US. 

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Roku Inc (ROKU-Q)
A unique play in the streaming space as it acts as a conduit for several thousand different apps. It’s a volatile stock but they facilitate the move from cable to streaming.

Roku Inc (ROKU-Q) — Stockchase

He, too, had higher hopes. If you already own, consider continuing to hold. Don't add, too many headwinds. Wants to see more consistent revenue growth, improved profitability, expanded user base. Challenging space.

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Canada Streaming Movers

Cineplex Inc (CGX-T)
The company is reporting earnings today. They are diversifying away from cinema which has added to debt but helped them diversify. There is a general downward trend to the movement. However, many investors buy this stock for the dividends.

Cineplex Inc (CGX-T) — Stockchase

Volatile, avoid. Comeback in revenue since Covid. Fundamentally weak, broken down. Slightly beat on revenue, but missed earnings. Trading sideways. A big rebound would take more than the company's capable of at this point. (Analysts’ price target is $12.58)

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Shaw Communication (B) (SJR.B-T)
Its recent move into streaming weighed on Shaw due to increased competition in the wireless space as well as streaming. It pays a good dividend near 4% and is in a safer oligopolistic industry.

Shaw Communication (B) (SJR.B-T) — Stockchase

It comes down to the Rogers deal, which the street thinks will happen, but this is the fourth deadline extension. The deal has been priced into shares, so there isn't much upside. Better to buy Rogers or Telus than Shaw.

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Rogers Communications (B) (RCI.B-T)
Rogers is a diversified telecom company that also offers Anyplace TV that lets subscribers watch tv on demand. They missed on earnings and the stock price pulled back so it could be a good chance to buy it on sale.

Rogers Communications (B) (RCI.B-T) — Stockchase

Doesn't own any telecoms, but dusting off the files on some. Not this one. May have bottomed, courtesy of macro economic tailwinds and rate-cutting cycle. Exited the sector due to cutthroat price-war competition. Possible optionality down the road with MLSE as a spinoff like MANU.

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BCE Inc. (BCE-T)
The BCE Premium TV channel let’s customers watch sports online. They pay out a good dividend that is considered safe. They recently reported earnings that were on par with expectations.

BCE Inc. (BCE-T) — Stockchase

When a stock's having a hard time, it can get worse. Looked cheap a month ago, but is now even cheaper. When you buy use a stop loss, so that a little mistake doesn't become a big one; this will save your bacon. Steer clear.

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Quebecor Inc (B) (QBR.B-T)
Through Vidéotron, the company offers club illico that let’s subscribers stream content, mostly focusing on French Canadian content. This telco has a strong presence in Quebec and is also active in Ontario.

Quebecor Inc (B) (QBR.B-T) — Stockchase

(A Top Pick Jul 25/24, Up 15.9%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with QBR.B is progressing well.  To remain disciplined, we recommend trailing up the stop (from $30) to $33 at this time.

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