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 Oct 22/18, Up 8%) Consumers re-purchase their products and their service division is strong. However, the China trade tension gives him pause; so, he's watching the trade talks. He's also worried about the NBA controversy in China. Cautious.
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 loves this company. It is very interesting because it is highly integrated among several segments. They have the best content (Marvel, Star Wars, and the legacy titles), which flows into the parks and consumer products. Disney Plus will do well with the low cost to consumers. It will become one of the main beneficiaries…
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.
Disney vs. Netflix over 10 years He owns both, but Netflix will see more grwoth as it penetrates internationally and doubling worldwide subscribers. They could expand into music and games. Disney pays a dividend, but Netflix will give you a higher total return. With Disney, be patient as they get into streaming, especially internationally.
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.
Two completely different horses. Amazon is more innovative so it could have higher growth, but Microsoft has new upgrades, new contracts and is more stable. He wouldn't own either because FANGS make up about 20% of the index funds, so they will go down more than the others. Would buy half a position and add…
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.
Video streaming. IPO’d at $14 a share and is currently at about $25.50. If you do the work, investigate the company and look at the end market you can get a very high hit rate on IPOs and do extremely well. At this point, he would say there is going to be significant turnover with…
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.
He owned in the past. He got stopped out. Yield is 7%. 1700 screens and 165 theaters. They don't have control over the film slate but they do have control on the 70 million people that come every year and diversifying the offering and they are doing that with the rec rooms and so forth.…
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.
Very well-run company. He thinks there is a lot of hidden value in this company. The next generation of the internet he thinks is going to benefit them.
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 very defensive space, telcos. Not a growth stock, but pays income. He prefers BCE, because it just finished a big capex cycle and pays a higher dividend. Also, wireless penetration in Canada is limited, which in turn limits growth. That said, all the Canadian telcos are good for the long-term. Buy for the dividend,…
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.
Has been taking some profits from BCE. Will eventually buy it back when it pulls back. It has a pretty strong upward resistance so you want to take some profits here. Could drop in the next recession.
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.
Videotron 7.125% Jan 15, 2020 Bond. Credit metrics of an investment grade bond. They are the cable providers of Quebec. They have to push their profits up to QBR.B-T, but in the case of any insolvency of QBR, Videotron is made whole. The biggest risk is that they would be the 4th big player out…