Over the past ten years, consumers have been cutting the cord on cable and tossing out their satellite dishes in favor of streaming services. Last year, the pandemic accelerated this trend, with many people forced to stay at home. As a result, media companies have been jumping into the streaming wars with their own services.
While most streaming stocks saw huge gains last year, this trend isn’t expected to end anytime soon. Across the world, more people pay for streaming subscriptions than cable TV. Why pay for cable when you can watch shows or movies from any place at any time, from an internet-based library of content.
There are so many different streaming services now that there is something for everybody. That’s why investors need to pay attention to streaming stocks. The industry will continue to grow. But not all of these services will be winners when all is said and done. This is why we need to focus on great long-term buys, which is why I am recommended Buy-rated streaming stocks Amazon.com, Inc. (AMZN – Get Rating), Netflix Inc. (NFLX – Get Rating), and AMC Networks Inc. (AMCX – Get Rating).
While AMZN is known as one of the largest e-commerce providers globally and the dominant name in the cloud-computing market, its Prime Video service is one of the top streaming services in the country. Its content library includes a vast selection of movies, TV shows, and original content. Luckily, the streaming service is free for Prime subscribers.
Unlike other streaming stocks, where streaming is the primary business model, AMZN uses Prime Video as a benefit to lure in more Prime subscriptions. Its online retail business essentially revolves around its Prime program, so the more benefits the subscription offers, the more subscribers the company gets. And the more subscribers the company gets, the more revenue it has coming in.
In fact, AMZN has been investing considerably into video content just to prove to consumers they can get anything they want with a PRIME subscription. The company has an overall grade of B, which translates into a Buy rating in our POWR Ratings service. AMZN has a Growth Grade of B, which isn’t surprising as analysts expect earnings to rise 15.7% in the current quarter.
The company also has a Sentiment Grade of A, which means it is well-liked by Wall Street analysts. According to the POWR Ratings Price Target feature, forty-five analysts rate AMZN a Strong Buy or Buy. We also grade AMZN based on Value, Momentum, Stability, and Quality. You can find those grades here. AMZN is ranked #7 in the Internet Industry. You can find other top stocks in the industry here.
While AMZN has a lot of subscribers, NFLX is the pioneer in the streaming space. The company evolved from a DVD-rental service to the dominant streaming provider. This due to its massive portfolio of content across multiple languages. Like AMZN, it is spending quite aggressively on its original content. This should help the company maintain its leading position against newcomers.
It should also maintain its growth as it is expanding its international footprint with more foreign-language content. The company has made partnerships with companies like Telefonica in Spain and KDDI in Japan to enhance its subscriber base. NFLX caters to…
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