Top Performing Streaming Stocks

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Streaming services give consumers a vast array of entertainment options. With a few clicks, members can choose from thousands of movies, shows and documentaries. Investors have noticed the demand for streaming platforms and have rushed into stocks that offer these services. If you want to get some exposure to streaming stocks but aren’t sure where to start, this guide can help.

Quick Look at the Top Performing Streaming Stocks:

Deep Dive

Want to invest in streaming companies? These are some of the top streaming stocks to consider.

1. Netflix Inc. (NASDAQ: NFLX)

Netflix has been a leader in the streaming industry for over a decade. Leadership didn’t seem worried about competitors entering the space because of how hard it is to become profitable in the industry. The company’s revenue was also up year-over-year, but growth can be an issue moving forward. Revenue and earnings growth were both in the low single digits, and leadership offered mild guidance. The Hollywood strikes can help the company gain momentum. Netflix remains the dominant leader in the streaming industry, but its high-growth days seem to be over.

2. Roku Inc. (NASDAQ: ROKU)

The company’s smart TV operating system helps people access streaming solutions more easily, but the platform’s ad network is its true strength. Roku has partnerships with companies like YouTube, Shopify and Amazon.

3. Amazon.com Inc. (AMZN)

Amazon is a conglomerate that has many business segments. Twitch and Amazon TV give the company direct exposure to streaming. However, Amazon’s role in streaming is much more than those two platforms. Many streaming services, such as Netflix, Disney+ and Hulu, use Amazon Web Services (AWS) for their platforms. Having streaming companies as clients while acting as a streaming company through some of its business segments gives Amazon a unique position in the sector. AWS is the company’s main growth and profitability engine.

4. Apple Inc. (NASDAQ: AAPL)

Apple became a household name for selling smartphones and laptops. However, the company has also dabbled in streaming. Apple TV features original shows and movies and has an affordable $6.99 per month plan. Apple TV is currently bleeding through money, but the company’s strong product lines and robust profit margins give it enough time to experiment with the platform and grow it over time.

5. Perion Network Ltd Common Stock (NASDAQ: PERI)

Perion is a high-flying, under-the-radar ad tech company that makes money from various ads, including its fast-growing CTV segment.

6. Alphabet Inc Class C (NASDAQ: GOOG)

Alphabet is another conglomerate that makes the bulk of its revenue from Google and YouTube. YouTube TV is the company’s streaming play, and its ad revenue has been on the upswing.

7. PubMatic Inc. (NASDAQ: PUBM)

PubMatic is an ad tech stock that stands to benefit from more people switching to connected TV. However, it is much smaller than The Trade Desk and currently has a market cap below $1 billion.

Pros

Streaming stocks tend to have large customer bases and steady recurring revenue. Many of these companies have demonstrated pricing power in the past. Occasional price hikes for the monthly subscription haven’t deterred members. Streaming stocks can also benefit from the ongoing Hollywood strike as people seek other forms of entertainment.

Where to Buy

Investors can choose from several streaming stocks. It doesn’t take much analyzing to conclude that some of these stocks are better than others. However, the same rule goes for brokers too. Some brokers are better than others, and if you are on the fence, you may want to consider some of these top brokers for your streaming stocks.

How to Choose

If you invest in a streaming stock, you have to stay on top of the industry. Individual performances matter, but these trends can impact the potential of streaming stocks. 

Cord-Cutting and Shift Towards Streaming Services

Cord-cutting allows people to save money, but they still need a form of entertainment. Many people who move away from cable TV turn to streaming services for their movies, live sports and other entertainment. As cord-cutting gains momentum and more people use streaming services, these companies can continue to report higher revenue and earnings growth.

Potential Impact of New Players Entering the Streaming Market

Netflix used to be the sole player in the streaming industry, but the sector has become more crowded. Many top companies are investing billions of dollars into streaming with varied levels of success. As new players enter the field, it becomes more difficult for consumers to keep up and pay for all of the subscriptions. That means some streaming services get dropped in favor of a few top platforms.

Innovations and Technological Advancements Shaping the Industry

Innovations in the streaming industry can impact total costs, each company’s ability to produce more shows and other variables. Technological advancements can help the industry and reward long-term investors.

Projections for Growth and Investment Opportunities

Investors should look at the guidance each streaming stock provides, which outlines how much the company’s leadership believes its streaming services will grow. You can also get an idea of the company’s long-term potential and if it looks promising.

Frequently Asked Questions

Best Streaming Stocks Methodology

The best methodology involved looking at streaming companies and ad tech companies that stand to benefit from the shift to connected TV. The list focused on companies that have turned profits. Some of these companies continue to be profitable, while others were previously profitable and may return to that status in the future.