Streaming is the future of video entertainment in the world where social distancing makes high quality video content more important than ever.
As COVID-19 continues to keep people at home, video entertainment becomes the default choice for consumers.
As more people transition from cable TV to streaming on-demand video, there will be a few companies to benefit from the change in consumer tastes.
I've listed the best streaming stocks to buy right now below. Please bookmark this page for future reference.
Best Streaming Stocks
|Company||YTD Price Performance|
|Genius Brands (GNUS)||483%|
1. Netflix (NFLX) – Total Subs: 192 Million
It's hard to make a list of top streaming stocks without mentioning Netflix. The company launched its movie & TV service in 2007 and has grown into the clear leader in the streaming space. With over 192 million paid subscribers, Netflix will continue to earn stable recurring cash during the pandemic.
2. Roku (ROKU) – Total Streaming Accounts: 43 million
Roku remains the #1 streaming unit in the U.S. and reached 43 million accounts ending in Q2 2020. Consumers need a way to connect to Netflix, Hulu, Disney+, and all their favorite apps so I think Roku has a lot of value in the long run. Their business model depends on advertising & unit sales unlike Netflix's subscription model. While Roku still remains unprofitable, they will continue to grow their streaming accounts and make a lot more money once the advertising industry recovers post COVID-19.
3. Disney (DIS) – Total Subs: 100 million
After years of stagnant growth, Disney decided to revamp themself as a top streaming company with the launch of Disney+. In their most recent Q3 2020 reports, Disney has over 100 million streaming subscribers across Disney+, Hulu, and ESPN+. 60.5 million of those subscribers signed up for Disney+, which will be a huge cash cow for Disney in the long run. Even though Disney is in catch up mode, Disney+ makes the company a whole lot more valuable while the theme park business took a huge hit during COVID-19 lockdown closures.
4. Genius Brands (GNUS)
Genius Brands is a newcomer to the streaming space and the stock skyrocketed to $11 per share amid the upcoming launch of the Kartoon Channel. Since then, the stock has plummeted due to massive dilution and no signs of incoming revenue. Genius Brands also launched their toy line, which sold out at Walmart and Amazon. This is a speculative, high risk stock with a multi-year timeline. If you are interested in micro-cap stocks with big potential, Genius Brands is a good bet.
Related: Should You Buy Genius Brands Stock?
5. AT&T – Total Subs: 36.5 Million
AT&T is well known as a true and tried dividend paying stock but they recently launched HBO MAX to increase their streaming revenue as customers cut the cable cord and embrace on demand video content. HBO Max has 4.1 million subscribers during its initial launch and AT&T plans to reach 50 million in the US by 2024. With an annual dividend or $2.08, AT&T is one of the higher yielding dividend stocks that gives investors exposure to the ongoing streaming wars.
Disclosure: I own shares of NFLX, ROKU, DIS, GNUS & AT&T.