Streaming Wars and the Future of Entertainment – Top Stocks to Watch
Entertainment related companies control vast media empires that can influence millions of viewers.
Not only do they produce content, but they also have a significant wait in advertisement if they control their own networks. Companies like Disney can also have derivative products that can produce significant cash-flow. These companies are able to shape culture by their offerings and what they decide to produce.
The Entertainment industry has been in deep transformation for years. It’s shaken up by streaming players and technology companies that are now getting into Entertainment Production. Netflix, Apple, Amazon and the likes are now as much content producers as technology companies.
Who is building the next Media Empire?
Here is a quick overview of the top entertainment production companies stocks you should watch…à
🎬 Entertainment Production
Cineplex Inc (CGX-T)
It looks like they are going to be bought by a UK company. The stock price surged on the announcement, although there is a long period before the deal closes and Cineplex still has a chance of finding a higher bid. They offer a sustainable dividend thanks to theatre traffic remaining constant and with other additions to their revenue stream.
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.…
Netflix Inc. (NFLX-Q)
Netflix is the online streaming service that most people know and use. It’s still one of the staples of the online streaming offerings. The space is starting to get crowded with Disney+ and Apple TV+ entering the arena. Their focus on their in-house content, which has won awards and keeps subscribers, will be key as the content war ramps up.
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?
The iPhone has been a staple in Apple’s line and has been their key product for some years. Now, they are building off their hardware to move into services such as News+ and TV+. Although there isn’t a load of content, more is in their pipeline. They have the budget to make high quality shows, and their advantage of being ingrained in the Apple ecosystem could be a major advantage.
(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.
Discovery Communications Inc (DISCB-Q)
A US based media company, that most people will know. Their most well-known network in their collection is probably the Discovery Channel. They also do partnerships and buy distribution rights for sports broadcasting.
Today, Wall Street hailed news of the AT&T and Discovery merger as a transformational blockbuster, but he sees it as the final act in one of the dumbest deals in recent history, AT&T's $85-billion buy of Time-Warner of nearly three years ago. Why would a telephone company buy a media business? Synergy? Really? AT&T took…
IMAX Corp. (IMAX-N)
The stock chart has closely resembled that of Cineplex with pressure from changing consumption patterns. People are watching movies at home rather than going to the cinema. The stock has been range-bound for some time. They are moving into China so there is a chance the stock may pick up.
Cineplex has a similar chart with pressure on the cinema business. IMAX is dead money, until it breaks above $24. It's been range-bound since mid-2017. You can start a small position and see it the breakout happens.
A dividend favourite that has good cash flow. They bought Time Warner, who is a major player in distribution, and production of shows and films. Analysts expect the dividends to continue and the stock is great for those looking for income.
Comcast Corp (CMCSA-Q)
A cable and broadband operator. It’s the largest cable company in the U.S.. Cord-cutting is a major challenge for this company, although they are the infrastructure that supports access to online content, so the growth of streaming services can counteract the cord-cutters.
Valuation down to 11x earnings. He expects a strong quarter with good cash flow from their cable subscriptions.
Walt Disney (DIS-N)
The Disney+ streaming service has given the stock a boost. The deal with 20th Century Fox was taken positively by analysts. It is currently trading at 20x earnings and is well-positioned to be a competitor to Netflix.
Allan Tong’s Discover Picks Disney stocks jumped like a yo-yo, falling below $100, then returning to $105 when the report was released, and even surpassing $107. Let’s face it—Disney stocks have been gutted this year. DIS tumbled from above $155 to lose a full third of their value and making it one of the worst…
CBS Corp (CBS-N)
An American mass media corporation. They are in commercial broadcasting, publishing and television production. A value play. However, they have faced headwinds from cord-cutting in cable.
Believes a good opportunity to buy with share price undervalued. Recent legal problems with resolve themselves. Double digit EPS growth expected. Strong dividend that will rise in the future.
Live Nation Entertainment Inc. (LYV-N)
A global entertainment company that came out of a merger between Live Nation and Ticketmaster. A top concert venue and ticketing company in the world. It recently found a short term bottom.
It is the parent of TicketMaster and has control or exclusive rights at 235 venues. Most of the revenue will come from concerts and it is expected to have a record year for revenue. 2022 is expected to have a year similar to 2019. Buy 8, Hold 6, Sell 1 (Analysts’ price target is $127.54)
Twenty-First Century Fox Inc (FOX-Q)
A Mass media corporation that is global. They regularly buyback stocks and bring value back to investors. They have many different interesting assets, including sports so it is worth a closer look.
The Stars Group The regulation of internet sports betting in the U.S. has been a pushback and he doesn't know how it'll resolve itself. TSGI just partnered with Fox Sports and Fox has other interesting assets, so this is a better way of playing online gambling.
A cloud service, e-commerce, and media company that is synonymous with North American online shopping. The Prime package gives access to a host of different services, including Amazon Prime Video. The service has original content as well as some well-known shows and movies. The content is bundled with the prime subscription, which may help buoy their entertainment business.
Company seeing diminished growth in business units (retail, AWS etc.) Law of diminishing returns is catching up with company (can't grow forever). 63x P/E ratio doesn't provide much room for healthy growth. Would sell shares and wait to buy when market reaches bottom.