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
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.
(A Top Pick Apr 07/22, Down 11.4%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with AAPL has triggered its stop at $152. To remain disciplined, we recommend covering the position at this time. This will result in a net investment gain of 2%, when combined with the previous top pick recommendation.
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.
DIS has pulled back a lot, but she believes in it long term. DIS launched their streamer amid a pandemic. Content costs for the sector is rising. DIS says Disney+ will be profitable 2.5 years from now. It was difficult to make a lot of new content during lockdowns, so there will be a lot…
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.
Has fallen from $659 in November to $166 today. You can say the stock has gotten cheaper compared to subscriber count, but will its business keep deteriorating? There's so much competition now. Can they innovate?
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.
King of e-commerce and retail. Hints of consumer slowdown get reflected in the stock. But 70% of revenues and profits actually come from AWS, part of a secular trend to server cost-cutting and efficiency. 12-month price target of $3800. A great bargain.
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.
Wall Street has left certain "pandemic" stocks for dead. Flew from under $60 to $490 during Covd. Absurd. Now, it trades at a still-high 79x earnings. Today's 7% jump (because Roku extended their deal with Amazon) is a one-day increase.
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.
Allan Tong’s Discover Picks With a monopoly in Canadian moviegoing, Cineplex stock has nowhere to go but up. But how far? It's no secret that Covid ravaged its operations and killed the Cineworld takeover. That case is now crawling through the courts as the UK chain appeals the C$1.23 billion in damages found against it.…
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.
No real clarity yet on the takeover. Frustrating. Rock solid. Free cashflow generator, solid dividend. Long term, it would be harder for them to carry on as a standalone company.
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.
(A Top Pick Apr 19/21, Up 22%) It lagged a lot last year over worries of the Shaw deal. He likes the telcos though has taken profits on all his holdings. He still likes this name.
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.
He is bullish on Telcos which do well in this environment. Some clients own BCE in their portfolios. Valuations are high and the dividend is not necessarily fully covered today but hopefully in a year. He prefers Telus which is better run with interesting assets and certainty of dividend growth.
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.
Defensive telecom and cable. Regional. Dominant cable operator. New cell phone competitor with 21% market share, but the fastest growing. Small sports/entertainment division. No commodity exposure and minimal wage inflation, as it's capital- and tech-intensive. Strong balance sheet. Interesting reinvestment catalysts out of Rogers-Shaw deal. Yield is 4.11%. (Analysts’ price target is $35.31)