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.
Has owned this for 15 years, so he's happy with it. But every morning he asks, What is the future of this stock? Is capital employed the best way for the future? Apple has a tremendous franchise built in of at least 1.3 billion devices worldwide and 93% consumer brand loyalty. Add to that we're…
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.
A past pick from summer 2020 when we started turning the corner on the pandemic Not a good time for movie-going, but Disney's popular streaming service is keeping the stock up. Now with vaccines, Disney is treated like a reopening play. The PE looks pricey, but he still likes it.
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.
They report next week. The stock is seeing fatigue from all the competing streamers. For Netflix to rise, it must deliver a report blow-out, but he isn't holding his breath.
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.
He has a small position. It is similar to AAPL-Q. They are dominant in many of the areas in which they operate. It is not a cheap stock. But he would not bet against them.
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.
Filed a strong quarter last Thursday with strong sales and profits. They added 2.9 million users, easily beating estimates with 20% higher revenues per viewer YOY. They offered strong guidance over the holiday season. Sold off badly today, but it's still up 10% in the last 6 sessions. Buy gradually into weakness. Cord-cutting is a…
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 was doing everything well and they were going to sell the business before the pandemic. Now, the business is ruined. With social distancing and lack of good movies, it is un-investable.
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.
Capital preservation and safety first. Wireless build is going well, gaining subscribers. Patriarch passed away last year, paving the way for a new direction. Collect the yield while you wait for something good to happen. Yield is 5.21%. (Analysts’ price target is $27.33)
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.
It's fine, but not his top pick in the telco space. Low beta. Less of a yield than others. A defensive, work from home play. Some of the bloom may come off the work from home trade, and money may flow to more cyclical parts of the market.
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.
Likes it. Stock has moved sideways. Live sports coming back should increase ad revenues again. Long-term, wireless market will continue to be strong. Likes it for the dividend and transition to 5G. Yield is 6% and should grow by 4-5%.
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…