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

Melisa R. H. Posted On November 14, 2019
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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.

:televisión: 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
Apple Inc (AAPL-Q) — Stockchase

Opinion about AAPL-Q: It is a great brand but does not have enough of a margin of safety for him since it trades near 30X forward earnings. Most earnings come from the sale of hardware and there is not a lot of margin in this. Also tariffs could have a big effect. It has other…

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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
Walt Disney Co. (DIS-N) — Stockchase

Opinion about DIS-N: Spike in stock is due to fears of an economic slowdown being put at bay. Theme parks are expanding, but will depend on macro environment. ESPN is more challenged. Disney+ is challenged because NFLX is beating everybody. Paying 20x PE for 12-13% growth. Doesn't dislike the name, but some segments are having…

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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
Netflix Inc. (NFLX-Q) — Stockchase

Opinion about NFLX-Q: The price target was raised today. Is up 36% this year. It's a permanent compounder. They still own the streaming space, are #1. Looks great. Has so many tailwinds. Is recession resistant.

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

Opinion about AMZN-Q: (A Top Pick Jun 06/24, Up 15%) Trades at 34x forward PE, with 20% growth rate starting next year. Technicals are positive. Shares are above 200-day MA, which is trending higher. AWS growth is reaccelerating again. Automation is improving margins. Ads are high margin and boosting profitability. Prime membership is its ecosystem,…

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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
Roku Inc (ROKU-Q) — Stockchase

Opinion about ROKU-Q: technical analysis by Bob Lang Roku is speculative, with a choppy chart, but it may have bottomed last week below the 200-day moving average and has rebounded to the mid-80s. The Chaikin Money Flow (CMF) remains bearish, ugly. A momentum indicator--MACD--is about to make a bullish crossover. Lang expects a breakout to…

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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
Cineplex Inc (CGX-T) — Stockchase

Opinion about CGX-T: It was a darling, a great business years ago that generated tons of free cash flow. He once owned it. Then, it was supposed to be bought, but bad luck saw Covid hit and the deal died. Great management and still a good business that generates cash, but times have changed--there are…

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

Opinion about SJR.B-T: 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
Rogers Communications (B) (RCI.B-T) — Stockchase

Opinion about RCI.B-T: (A Top Pick May 09/24, Down 27%) He still likes it and would buy more. High immigration is a tailwind since there are more customers for telecom. Cost cutting is going on and new technology is being implemented. There is lots of free cash flow and along with lower interest rates this…

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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
BCE Inc. (BCE-T) — Stockchase

Opinion about BCE-T: Now is probably the time to buy if you want to take a position. At $30 it is reasonably cheap. He likes the dividend cut which gives it financial flexibility and the opportunity to pay down debt. The dividend is still quite high at 6% and is stable. Market fears are somewhat…

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

Opinion about QBR.B-T: (A Top Pick Jan 23/24, Up 3%) Benefiting from the Freedom Mobile purchase. Able to expand in Ontario and Western Canada without deploying too much capex. Very high ROE and free cashflow, allowing them to lower debt and obtain investment-grade rating on bonds. Aggressively buying back shares. Best-performing telecom stock this year.

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