3 Best Streaming Stocks: Here’s Why These Picks Are Worth Watching
As more people switch to streaming TV services, investing in streaming stocks is becoming increasingly popular. Let’s explore three of the best options for investors looking to benefit from the rise of streaming TV.
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1. Roku (ROKU):
Roku stands out as a top investment choice among streaming stocks. Known for its hardware like Roku sticks and TVs, it serves as a crucial bridge for users to access various streaming services seamlessly.
With Roku reigning as the largest TV platform in the U.S., boasting over 71 million active accounts worldwide, it’s clear why investors are drawn to its potential. By providing its software and devices inexpensively and leveraging ad revenue and subscription management, Roku positions itself at the forefront of the streaming revolution.
While Roku faces challenges in cost control, monitoring its journey toward sustainable profitability is crucial. As it navigates this path, investors have an opportunity to capitalize on its pivotal and emerging role in the booming streaming industry.
2. The Walt Disney Company (DIS)
Disney+ has swiftly amassed tens of millions of subscribers globally since launching in 2019. Today, Disney has solidified its position as the second-largest subscription streaming service behind Netflix.
In addition to Disney+, the company also boasts ownership of other popular streaming platforms like Hulu and ESPN+ in the U.S..
With its well-established brand and diverse content offerings, Disney is poised to capitalize on the streaming boom.
3. Netflix (NFLX):
As the pioneer of streaming TV, Netflix boasts a whopping 230 million subscribers globally, solidifying its position as the largest streaming platform. While U.S. subscriber growth has plateaued, Netflix continues to expand aggressively on the international front.
One of Netflix’s key strategies for international growth involves producing content in local languages, catering to diverse audiences worldwide. However, this content creation comes with hefty costs, leading to periods of negative free cash flow in recent years.
To address financial challenges, Netflix is implementing measures such as cracking down on password sharing and introducing a lower-cost ad-supported subscription tier.
4. Apple (AAPL):
Apple earned a spot on this list because of its strategic expansion into live sports streaming, a lucrative segment in the streaming industry.
Apple has already secured partnerships that enable it to stream exclusive games for major sports leagues such as Major League Baseball, the National Basketball Association, and Major League Soccer. Apple remains poised to capitalize on the growing demand for live sports content.
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Additionally, Apple emerges as a standout choice among streaming stocks because of its large cash reserves and growing services segment, including Apple TV+.
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