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.
Allan Tong’s Discover Picks One could argue that Apple shares should be falling after it reported an EPS miss last week of $1.88 vs. the expected $1.94, and $2.10 a year ago. Further, the company reported a 5.5% decline in revenues, based on $117.15 billion in the last quarter. However, Apple did top estimates in…
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.
It is deep in debt on the streaming platform component, is not making money on it, and may sell programs to Netflix. The Parks business is amazing and Avatar will make a fortune. For streaming he prefers Netflix which makes a lot of money.
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.
(A Top Pick Sep 15/22, Up 48.8%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with NFLX is progressing well. To remain disciplined, we now recommend trailing up the stop (from $260) to $320.
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.
It still can't get costs under control. AWS, its cloud division has disappointing margins with growth slowing quickly. However its new CEO has signaled that they will get costs under control and if this happens the company could make a fortune. It could earn $4 per share in 2024.
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.
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.
Too many good shows on competing streaming services. Kids don't go to a movie every Friday the way he used to. Doesn't know what the catalyst is. Dividend gone. Balance sheet probably not in good shape, pandemic did lots of damage. All depends on quality of movies. Media companies all losing money. No growth tailwinds…
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.
Rogers will probably win the court battle, though there will be concessions. You better like Rogers.
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.
Very strong company regardless of Shaw merger. Strong technology assets and legacy equipment. Demand for services inelastic. Strong dividend yield that appears to be stable. Good company for the long term shareholder.
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.
It has raised its dividend again with dividend growth being 3 to 5%. annually. Although growth has slowed for Canadian Telcos, BCE is one of the biggest providers of cell phones.
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)