The streaming industry has been one of the more attractive growth sectors in recent times, and streaming stocks have managed to record significant gains over the years. In addition to that, the lockdowns have come as a massive boost for many streaming stocks. Since hundreds of thousands of people are now cooped up in their homes, it is almost certain that they are going to spend a lot of time on streaming services. This has resulted in a lot of optimism around streaming stocks among investors and also market watchers.
Data suggests that hours being spent on streaming platforms are rising steadily, which is a promising development. Nielsen has also extrapolated the data to suggest that as the lockdowns continue, there could be greater demand for streaming services among consumers. In the same report, Nielsen stated that since people are staying home, it could eventually lead to a 60% rise in the amount of time spent on streaming websites. In such a situation, it is only natural for investors to consider having a look at some of the streaming stocks in the market. Here is a quick look at three.
Streaming Stocks Soar: Netflix Inc (NASDAQ:NFLX)
Netflix is the biggest player in the streaming market and by some distance. So far this week, Netflix stock jumped by 11% after Canaccord Genuity sent out a bullish report regarding its prospects. Analyst Michael Graham has maintained his buy rating on the stock, raising the price target to $450 a share from $417 a share.
He stated that Netflix is going to benefit from the stay-at-home norms that have been instigated all over the place. Graham stated that the company could boost its subscriber base by 20% in the first fiscal quarter and by 5% for the full year. That could, in turn, lead to revenue growth of 1% for the full financial year.
Netflix is scheduled to release its financial results for the first fiscal quarter on April 21, and the results are going to be watched closely by investors. While it is tough to figure out whether the company is going to beat the estimates for the quarter, it should be noted that Netflix could be a prudent long-term investment. It is one of the streaming stocks that investors may want to follow closely.
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Netflix stock made an all-time high of $417.38 this morning.
Streaming Stocks Soar: Roku Inc (NASDAQ:ROKU)
One of the streaming stocks that ought to be on investors’ radars is the steaming device and platform firm Roku. Late Monday, Roku announced that from January to March, it added 3 million new customers, which was higher than analysts’ estimates of 2.56 million.
In addition to that, the company stated that the total streaming hours on its platform have gone up by 49% year-on-year, hitting 13.2 billion hours. In its announcement, the company revealed that a significant factor behind the rise in streaming hours on the platform was due to the stay-at-home orders announced last month. These orders also led to the growth in new accounts.
The announcement was a significant one for ROKU stock, which soared by 10% in today’s trading session.
Because Roku sells ads on its platform, the increase in accounts and streaming hours could translate to a massive revenue boost for the company.
The jump in the stock price is an indication that Roku could emerge as one of the more promising streaming stocks in the market during this time. Investors may want to keep an eye on ROKU stock over the coming days.
Streaming Stocks Soar: Walt Disney Co (NYSE:DIS)
Lastly, Disney stock could emerge as another worthwhile streaming stock play of the year on the back of the impressive growth generated by Disney+ in a matter of only a few months. Recently, the platform hit the 50 million subscriber mark, and although this number is dwarfed by Netflix’s numbers, it still represents considerable growth. The service recently launched in India, which could lead to even more subscriptions.
Disney could generate around $3.3 billion in annual revenue if it currently has 50 million subscribers, who pay $5.56 per month. It might not be a lot, considering the fact that Disney generated $69.6 billion in revenue last year, but it is almost certain that by next year, that number is going to grow further. In addition to that, the streaming offerings of Hulu and ESPN should also be considered when looking into Disney’s streaming business.
There is a lot of promise in Disney stock at the moment, and it could prove to be one of the more clever streaming stock plays.
Featured image: DepositPhotos © K.Klimenko
