The streaming industry has been on a boom since the pandemic. The lockdown restrictions have driven more audience towards streaming platforms.
Streaming stocks have been a trending sector in the stock market this year. There are few notable stocks in the streaming industry that have an upbeat long-term prospect.
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The streaming market has some strong competitive platforms that provide its consumers with quality content. The COVID-19 pandemic has intensified this competition and with more viewers joining streaming networks, the future looks evident.
The popularity of streaming platforms has widely grown in 2020. In March, streaming accounted for 23% of TV viewing time, a stunning increase from the prior year. This has resulted in a strong push for over-the-top media (OTT) platforms. The increase in new user signups has helped revenues to grow swiftly for streaming firms.
Moreover, the change in viewing habits due to lockdowns have made users spend twice as much time streaming as they did before the pandemic.
Over the years, Streaming stocks have strengthened their position in the market. Their continuing development promises strong long-term growth.
Here are the three best-streaming stocks to buy as we head to 2021.
Netflix (NFLX) is a subscription-based streaming platform. The online streaming network has recorded continuous growth since the company began streaming in 2007.
As per Statista, Netflix has over $195 million viewers by the end of Q3 2020, up from $158.33 in Q3 2019. The market cap of $231.86 billion shows a strong equity valuation of the shareholders.
The stocks with larger market value tend to have more stability in uncertain and unstable economic conditions such as in the COVID-19 pandemic. Moreover, Netflix is a stay-at-home stock that has turned out to be a star in the global epidemic.
For this reason, Netflix is a streaming favorite stock for long-term investors. NFLX stock has a share price of $524.83 just behind its high time highs of $529. This takes the stock to record a whopping growth of over 60% year-to-date.
The stock has shown stunning growth over the past decade and the next decade awaits much more from the streaming giant.
The e-commerce deity is making sure that it does not leave any sector behind. Amazon (AMZN) has influenced the entire business world through its modern-tech network. Its subscription-based streaming network, Amazon Prime Video (APV)hosts a variety of content created by the company and from outside sources.
APV is growing rapidly and is the biggest competitor to Netflix, who’s leading the Over-the-top (OTT) media services platform. Amazon has been a major winner across other segments that add an extra advantage to this streaming stock. Moreover, the growth of APV has been breathtaking.
APV is a major catalyst for AMZN stock that will drive its long-term growth. In the third quarter, revenues from Prime memberships grew up to $6.58 billion, up by 33%. As of January, the Primer members of APV were around 150 million, growing more as the pandemic goes on.
Substantially, APV continues to enhance its content production and improve user experience. The packages are quite cheap compared to that of Netflix.
So, Amazon must be on the radar as a top streaming stock.
Walt Disney (DIS) has had a pretty good 2020. The fantasy empire is one of the best streaming stocks to watch in the market heading forward.
As of Dec. 2, 2020, Disney recorded 137 million global streaming subscribers, adding a stunning 17 million more from its fiscal year 2020, which was reported a couple of months ago.
Disney is shaping itself to prepare for the new normal, which makes it a captivating investment going into the next year. The company is focusing more on its streaming platform and wants Disney+ to become the industry leader.
As of August 2020, Disney+ had over 60.5 million subscribers. Disney’s collaboration with LG and Samsung will also attract more viewers towards Disney+.
The company has a market cap of almost $313 billion and with momentum growing strong, Disney stock is expected to make a big move in 2021.