10 Best Streaming Service Stocks To Buy

Published April 25, 2024 at 6:11 pm EDT Updated August 19, 2026 at 3:48 pm EDT

In this article, we will discuss the 10 best streaming service stocks to buy.

In recent years, the streaming TV landscape has seen a rapid expansion, with numerous new options entering the market. With a plethora of subscription internet TV services available, streaming entertainment has become a staple in American households, evidenced by the 99% of U.S. households subscribing to one or more streaming platforms. Leading the pack are Netflix, Inc. (NASDAQ:NFLX), Amazon.com, Inc. (NASDAQ:AMZN)’s Prime Video, and Apple Inc. (NASDAQ:AAPL)’s TV+. This widespread adoption reflects a shift in entertainment consumption, moving away from traditional cable TV models towards flexible, on-demand streaming options. On average, Americans maintain subscriptions to around 2.9 streaming services each month.

According to a research report by Fortune Business Insights, the video streaming industry is a significant economic force, currently valued at an impressive $544 billion. This valuation not only reflects the industry’s current success but also hints at its rapid expansion in the future. Projections suggest that by 2030, the industry could skyrocket to a staggering $1,902 billion. The financial trajectory of the video streaming industry also continues to surge, with revenue expected to reach $43.97 billion in 2024 alone. This robust growth is anticipated to persist, with revenue forecasted to climb to $54.22 billion by 2027, boasting an annual growth rate of 7.53% from 2024 to 2027.

Data from Nielsen, a leading data and market measurement firm, proves that the rise of streaming services has fundamentally altered TV viewing habits, with streaming content now being the primary driver of TV usage. In 2023, American audiences streamed a staggering 21 million years of video, marking a 21% increase from the 17 million years’ worth they streamed in 2022. Amid these viewership patterns, one clear beneficiary emerged: the TV show “Suits.” Originally aired on USA Network from 2011 to 2019, “Suits” amassed a total of 57.7 billion viewing minutes in 2023, surpassing even the beloved favorite “The Office,” which garnered 57.1 billion viewing minutes in 2020 during the pandemic-induced lockdowns. In total, the top 10 titles in the U.S. collectively garnered over 133 billion minutes of viewing time last year.

However, akin to other sectors, the streaming industry encounters its own set of challenges, most notably marked by heightened competition, which has spurred companies to invest billions in developing their own platforms and content libraries, aiming to compete with established industry leaders, which in turn prompted streaming services to adjust their subscription costs. For instance, The Verge reports that Netflix, Inc. (NASDAQ:NFLX) has made changes to its subscription offerings, discontinuing the ad-free Basic plan priced at $11.99 per month for new or returning members. Instead, the company is transitioning to a model where ad-supported plans are available in select countries, starting with Canada and the UK in the second quarter of this year. As a result, Netflix, Inc. (NASDAQ:NFLX)’s cheapest ad-free option is now priced at $15.49 per month. This increase in subscription rates can lead to higher number of subscription cancellation, as seen last year. In 2023, data analytics firm Antenna recorded 36.2 million more cancellations compared to the previous year, resulting in 17 million fewer net additions. This indicates that streaming services are facing a greater challenge in acquiring new subscribers despite their continued efforts.

On a different note, the music streaming scene in the U.S. has seen substantial evolution over the last decade. Presently, the United States records approximately 90 million paid music streaming subscribers, a significant leap from the mere 7.9 million users in the first half of 2014. Within the competitive realm of music streaming services, Spotify Technology S.A. (NYSE:SPOT) stands out as the clear frontrunner, holding a commanding 30.5% market share, while its closest competitor, Apple Music, trails with a 13.7% share.

In light of this, the burgeoning realms of streaming are not merely flourishing; they are fundamentally reshaping the landscape of entertainment and media consumption. The substantial financial implications, characterized by billions in revenue and considerable monthly expenditure on subscriptions, serve as a testament to the economic prowess wielded by these industries. With that in mind, investors looking to take part in this lucrative industry can look towards some of the best streaming service stocks to invest in, which include the likes of Amazon.com, Inc. (NASDAQ:AMZN), Netflix, Inc. (NASDAQ:NFLX), and The Walt Disney Company (NYSE:DIS).

Photo by Ashley Byrd on Unsplash

Our Methodology

In this article, we’ve curated a list of the best streaming service stocks based on hedge fund sentiment. While most of these stocks offer streaming platforms, a select few provide services within the streaming market and are set for growth from the overall industry. Our analysis is derived from Insider Monkey’s database of 933 elite hedge funds tracked as of the fourth quarter of 2023. The list is organized in ascending order based on the number of hedge fund holders in each company. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.

10. Roku, Inc. (NASDAQ:ROKU)

Number of Hedge Fund Investors: 32

Established in 2002, Roku, Inc. (NASDAQ:ROKU) is a prominent American public company specializing in streaming devices and smart TVs. It is recognized for licensing its streaming technology to other manufacturers and operating an advertising business over its streaming network. With 70 million viewers as of 2023, Roku, Inc. holds the position of the leading streaming TV network in the U.S.

On February 15, Roku, Inc. unveiled its financial results for the fourth quarter and full year of 2023. The company disclosed an 11% year-over-year surge in total net revenue, reaching $3.5 billion, with platform revenue contributing $3.0 billion, marking a 10% increase from the prior year. Gross profit also experienced growth, reaching $1.5 billion, reflecting a 6% rise year-over-year. Moreover, the company’s active accounts expanded to 80 million, indicating a 14% increase year-over-year, while streaming hours surged to 106 billion, representing an 18.6 billion hour increase from the previous year.

Insider Monkey analyzed 933 hedge fund portfolios for the fourth quarter of last year, revealing that 32 were shareholders of Roku, Inc.. During the same period, ARK Investment Management emerged as the largest shareholder of Roku, Inc. in their database, with a substantial investment totaling $873.4 million.

Much like Amazon.com, Inc., Netflix, Inc., and The Walt Disney Company, Roku, Inc. ranks as one of the best streaming service stocks to invest in.

9. The Trade Desk, Inc. (NASDAQ:TTD)

Number of Hedge Fund Holders: 41

Headquartered in the United States, The Trade Desk, Inc. (NASDAQ:TTD) is a multinational technology company focusing on real-time programmatic marketing automation technologies, products, and services. With a commitment to personalized digital content, the company champions Unified ID 2.0 (UID2), a protocol designed to balance relevant advertising with user privacy concerns. In addition, The Trade Desk provides a cloud-based digital advertising purchasing and optimization platform catering to advertisers across various mediums, including CTV, display, audio, and digital out-of-home.

On February 22, Needham analysts maintained a Buy rating and a $100 price target on The Trade Desk, Inc..

During the December quarter of the previous year, 41 out of the 933 hedge funds profiled by Insider Monkey held shares of the firm. The Trade Desk, Inc.’s largest investor is Israel Englander’s Millennium Management, which owns 3.32 million shares valued at $239 million.

ClearBridge Investments mentioned The Trade Desk, Inc. in its fourth-quarter 2023 investor letter:

“We have chosen to source a significant number of ideas among companies earlier in their business lifecycle by focusing on four secular growth themes: data and analytics, onshoring/reshoring, information security and e-commerce. In addition to Microsoft, three of the four other new positions we initiated during the quarter fit within these focus areas: The Trade Desk, Inc. (NASDAQ:TTD), Monolithic Power Systems and Model N.

Trade Desk, in the communication services sector, is a disruptor in the advertising technology market, operating a cloud-based platform that enables buyers to manage their digital advertising campaigns. We added the shares on a pullback due to recessionary fears and ad buyer cautiousness.”

8. Warner Bros. Discovery, Inc. (NASDAQ:WBD)

Number of Hedge Fund Holders: 56

Warner Bros. Discovery, Inc. (NASDAQ:WBD) is a global media and entertainment firm that is divided into three business segments: Studios, Network, and Direct to Consumer. The company provides a variety of content, brands, and franchises across television, cinema, streaming, and gaming that operate under well-known brands, including Warner Bros. Motion Picture Group, Warner Bros. Television Group, DC, Discovery Channel, CNN, and HBO.

On February 23, Warner Bros. Discovery, Inc. announced a Q4 GAAP EPS of -$0.16 and a revenue of $10.28 billion, falling short of estimates by $0.10 and $140 million, respectively.

By Q4 of 2023 end, 56 out of the 933 hedge funds part of Insider Monkey’s database had bought Warner Bros. Discovery, Inc.’s shares. Natixis Global Asset Management’s Harris Associates was the biggest investor through its $904 million stake.

7. Comcast Corporation (NASDAQ:CMCSA)

Number of Hedge Fund Holders: 63

Comcast Corporation (NASDAQ:CMCSA), based in Philadelphia, is a prominent American multinational conglomerate in the telecommunications and media industry. Renowned for its cable television and high-speed Internet services under the Xfinity brand, Comcast Corporation stands as one of the largest broadcasting and cable television companies globally.

On January 30, analysts at Citigroup reaffirmed their Buy rating on Comcast Corporation along with a price target of $53.

According to Insider Monkey’s database of Q4 2023, 63 hedge funds held stakes in Comcast Corporation, compared with 68 in the previous quarter. The collective stake value of these positions is nearly $3 billion.

6. Spotify Technology S.A. (NYSE:SPOT)

Number of Hedge Fund Holders: 68

Based in Luxembourg, Spotify Technology S.A. operates as a digital music streaming company, renowned for its transformative impact on the music industry. Unlike traditional models based on album sales and performances, Spotify compensates artists based on the number of song streams. As of the end of 2023, Spotify boasted 602 million users globally, with 236 million paying subscribers.

Spotify Technology S.A. recently announced plans to implement price increases of about $1 to $2 per month in five markets, including the U.K., Australia, and Pakistan, by the end of April. Notably, the company also plans to raise prices in the U.S., its largest market, later in the year. Barton Crockett, an analyst at Rosenblatt Securities, viewed these price hikes as promising, maintaining his buy rating on the SPOT stock and setting a price target of 315 in a client note.

As of Q4 2023, Spotify Technology S.A. shares were owned by 68 prominent hedge funds tracked by Insider Monkey, with the total value of shares held by these hedge funds valued at $2.63 billion. Ken Griffin’s Citadel Investment Group was its largest hedge fund shareholder with ownership of 1.65 million shares valued at $311.16 million.

Spotify Technology S.A. joins the ranks of Amazon.com, Inc., Netflix, Inc., and The Walt Disney Company as one of the best streaming service stocks to buy now.

5. The Walt Disney Company (NYSE:DIS)

Number of Hedge Fund Holders: 89

Established in 1923, The Walt Disney Company is a prominent media and entertainment conglomerate renowned for its production and distribution of diverse content, spanning movies, television shows, and animated films. The company is also renowned for its globally acclaimed theme parks. Additionally, The Walt Disney Company has solidified its position in the streaming market with the launch of its streaming service, Disney+.

On March 28, Needham adjusted its outlook on The Walt Disney Company, raising the price target for the stock from $120.00 to $145.00 while maintaining a buy rating. This upward revision in the price target by Needham reflects the firm’s optimistic view of The Walt Disney Company’s future growth potential and overall performance in the entertainment industry.

89 out of the 933 hedge funds part of Insider Monkey’s Q4 2023 database had bought the firm’s shares. The Walt Disney Company’s largest stakeholder among these was Nelson Peltz’s Trian Partners as it owned $2.9 billion worth of shares.

4. Netflix, Inc. (NASDAQ:NFLX)

Number of Hedge Fund Holders: 89

Netflix, Inc., headquartered in Los Gatos, California, is a leading provider of streaming entertainment services, boasting a vast subscriber base of over 260 million paid memberships spanning across more than 190 countries. The company offers an extensive library of films and television series, including both licensed content and original productions.

In its Q4 2023 financial report released on January 23, Netflix reported robust performance metrics. The company achieved a revenue of $8.8 billion, indicating nearly 12% year-over-year growth, accompanied by a net income of $938 million. Impressively, Netflix, Inc. added 13.1 million new paid members during the quarter, marking a growth rate of nearly 13%.

As of the end of the fourth quarter of 2023, 89 hedge funds out of the 933 funds tracked by Insider Monkey had stakes in Netflix Inc. The most notable stake in Netflix Inc is owned by Ken Fisher’s Fisher Asset Management which owns a $2 billion stake in Netflix Inc.

Sequoia Fund stated the following regarding Netflix, Inc. in its fourth quarter 2023 investor letter:

“Exits last year included Netflix, Inc. (NASDAQ:NFLX), Bank of America and Micron. We opportunistically added to our Netflix position in late 2022, near what turned out to be the lows. We sold our shares in stages over the course of last year as the stock price recovered and the valuation of the business rose dramatically.”

3. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 131

Apple Inc. stands as a prominent technology company renowned for its development, manufacturing, and marketing of smartphones, personal computers, tablets, wearables, and associated accessories. Additionally, the company is significantly investing in original content production for its streaming platform, Apple TV+.

On March 5, Wedbush, an investment advisory firm, reaffirmed an Outperform rating on Apple Inc. stock, while setting a price target of $250.

Insider Monkey’s database reveals that as of the fourth quarter of 2023, 131 hedge funds maintained stakes in Apple Inc., collectively valued at $205 billion. This figure marks a slight decrease from the preceding quarter, during which 134 hedge funds held stakes totaling $179 billion.

2. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 166

Alphabet Inc. (NASDAQ:GOOG) stands as a colossal tech conglomerate, renowned primarily for its flagship business, Google. Google’s search engine ranks as the most widely used globally, complemented by a suite of services including email, online storage, maps, ads, and hardware products. Additionally, Google TV provides a platform for streaming TV shows and movies on smart TVs and other devices.

On January 24, Raymond James, an investment advisory firm, upheld an Outperform rating on Alphabet Inc. stock while raising the price target to $160 from $150.

Among the hedge funds monitored by Insider Monkey, Fisher Asset Management, headquartered in Texas, emerges as a prominent shareholder in Alphabet Inc., holding 45 million shares valued at over $6.3 billion.

1. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 293

Established in 1994, Amazon.com, Inc. has built its reputation primarily as a leading online marketplace, facilitating the purchase of diverse products from numerous vendors. Beyond its e-commerce platform, the company provides an array of additional products and services, such as streaming video and music, cloud storage solutions, and home security offerings. Notably, Amazon Prime Video ranks as the second-largest streaming platform globally, boasting a subscriber base exceeding 200 million.

Insider Monkey’s database, which monitors 933 elite hedge funds, reveals a positive sentiment towards Amazon.com, Inc. in Q4. The number of hedge funds with investments in the stock rose to 293, up from 286 in the previous quarter.

Alger Spectra Fund stated the following regarding Amazon.com, Inc. in its fourth quarter 2023 investor letter:

“Amazon.com, Inc. (NASDAQ:AMZN) is a well-known online retailer and cloud computing leader. The company’s Amazon Web Services (AWS) business provides utility-scale cloud offerings that facilitate corporate America’s transition to digital systems. During the quarter, shares contributed to performance as Amazon reported strong fiscal third quarter results, where the company beat sales and earnings estimates. Moreover, AWS growth remained steady. contributing to Amazon’s better-than-expected operating income despite concerns around cloud cost optimizations, showing signs of increasing net new cloud workloads. While management noted that customers remain price-conscious and focused on deals, demand remains strong across all segments, leading the company to raise their fiscal fourth quarter revenue and operating income guidance.”

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