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.
It is their largest position and have held it for a long time. He would continue to buy it. The trend are favourable for this business. The best company in terms of market capitalization and cashflow. He feels it is still undervalued.
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.
He used to own it, but sold it. There were worries about theme parks, cruise ships and movies. These worries have not passed. The Disney+ is doing well and they have good licenses. If the theme park business was spun out and covid disappears, it could be a good pick.
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.
Allan Tong’s Discover Picks The smart money would’ve bought this during the height of the lockdown in late-March when Netflix touched $300. Now, the subs don’t support the stock price. That said, Netflix will continue to dominate the streaming space, so shareholders could hold for the long term, add on even deeper pullbacks or take…
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.
Walmart? It's made great strides to compete with Amazon with next-day delivery. He'd still prefer Amazon, but Walmart will continue to do well. Discount retailers will. Amazon could pull back in this earnings period.
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.
He did own this one and it is on his radar again. He would like to buy in the mid-$80s. Their streaming and hardware strength makes it a good opportunity.
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.
He likes and own telecoms. He likes Freedom Mobile and Shaw paying down debt. This is the cheaper play in this sector. Balance sheet is in good shape. Their latest report beat the street. They're growing their wireless division. Growth to come. (Analysts’ price target is $26.50)
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.
Telcos & utilities' outlook in the work-from-home era Rogers got hit when sports were cancelled/postponed and their broadcasting business may be impacted if MLB baseball is cancelled. Who knows? With Telus, you're taking less media-related risk. Telus is down 20% from its peak and pays a dividend over 5% that should rise. He sees no…
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.
7% 2027 debenture All BCE securities are rock-solid credit. Nothing to worry about even in this environment and he owns these bonds in their portfolios. Zero worry.
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.