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

It's such a large company, operating in so many verticals that there will always be a reason to worry about it, but he's held this stock forever and won't sell it. Nothing fundamental about it has changed. They continue to develop in many interesting areas. Not worried about its future.

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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

Has owned shares in the past, but not right now.Company less attractive than in the past.Expensive business costs with inability to generate growing cash flow.Re-investment into theme park business will be beneficial.Concerned about long term prospects for company.Current share price too high to justify investment. 

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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

Upgraded today He agrees, thinks Netflix could hit $500. In recent years, he has bought on weakness and sold on strength, based on the company's direction of revenue growth, now 16% (3 years) and 8% (2 years) and 3% (1 year). We could easily see that accelerate. He would buy it back.

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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

He targets $71.87 or 45% lower. Pays no dividend. Saw a negative signal in the wider market last week.

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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

Is surprised with how well it's doing, but people watch content by streaming, which is Roku's wheelhouse. Shares are up 50% this month, up too much for him.

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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

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research Revenue growth is coming back a bit, with lower comparables from last year helping the year-over-year figures. Its debt levels are high, with net debt of $1.9B, and a net debt/EBITDA of 6.8X. Interest costs are $137M (last 12 months) and these will likely rise…

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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

He targets $47 or 13% lower. It yields 3.7% that they can cover. But the market isn't excited, plus this is sensitive to interest rates. It's only slightly better than BCE. Maybe it's interesting at $41.

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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

He expects interest rates in Canada to keep rising, as high as 15%. BCE is tied closely to interest rates. He targets $35.81, or 32.5% lower than now. Their earnings can't match the dividend they pay out. Basically, you're losing equity (book value) as you collect the 7.24% dividend. Or you can buy a GIC…

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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

Good value, whole sector's been in a funk. Got a good price for Freedom Mobile. Good operators. Better growth potential, as they can now operate outside of Quebec. Wants to see capex plans for Western expansion before adding to his position.

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