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
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.
He owns FB, GOOGL, and NFLX. Avoided Apple as it's underperformed since September due to rotation. Right now, its future is more muted with 5% revenue growth and 9% earnings growth over the next several years. It pales compared to the others. Its future depends on how it can expand services.
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.
Accelerated vaccinations means that Disney's timetable to reopen theme parks and movie businesses can open sooner.
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.
Movie theatre business is done. It's all about NFLX and DIS. Best service, local language products. No one's going to catch them. Margins will grow and earnings will increase dramatically. Wishy-washy in the short term, but very bullish long-term. No dividend. (Analysts’ price target is $609.50)
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.
Not cheap, but it's down for the year. Looking at a post-pandemic America, he presumes Amazon to keep many of the customers they picked up during the pandemic. They spent $4 billion to protect their workers.
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.
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.
It's a very difficult story. People will take time returning to the cinemas. Cineplex did a good job offering ancillary services. Also, film studios like Disney are rethinking how they will exhibit movies (i.e. streaming). Will the Marvel blockbusters return to big screens?
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.
They participate in the spread when the deal is announced. Shaw is trading 24% the price Rogers has offered. This is due to the fear of regulatory intervention. Thinks that the real concern is on the wireless side, and this deal works without the wireless side. They can divest Shaw's wireless side and still be…
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.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. They have finally gotten Shaw with a very large premium. A big deal at $26B. Regulators will surely be looking at this closely. Shares may come under pressure but they claim $1B in synergies and it should make a successful merger if the regulators allow…
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.
Very high quality with no issues on the balance sheet. Own it for its yield at 6.1% with a reasonable payout ratio. Low volatility. A bond replacement. Hold for the yield.
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.
Pre-COVIC, he saw that tech was going to pop, and now the puck is heading to boring value names, like Quebecor. Has an 11% growth rate and trades at 12.6x 2021. Its a very cheap telco and have a lot of cash to return to shareholders and raise the dividend if they wish. Their wireless…