In this article, we will discuss the 12 best streaming and TV stocks to buy now.
Streaming has become an integral part of our daily lives, from watching movies and TV shows to listening to music and playing games. The rise of streaming services has been incredible, and there are no signs of slowing down. The streaming market size is projected to grow to $1.9 trillion by 2028, as noted by Fortune Business Insights. This remarkable growth is a testament to the profound impact streaming has had on our entertainment habits. In fact, if anything, the pace of change in streaming is only going to quicken, and the future is going to be even more exciting, going by some of the emerging trends and technologies on the horizon.
Exponential advances in technology have changed entire industries, especially over the past 10 to 15 years. For example, Netflix, Inc. (NASDAQ:NFLX), Amazon.com, Inc. (NASDAQ:AMZN)’s Prime Video, Hulu, and other digital channels or streaming services have acted as massive disruptive forces within the media and television industries.
Netflix, Inc. (NASDAQ:NFLX) maintains a strong competitive edge compared to legacy media giants, as switching to streaming services for entertainment becomes more dominant. Netflix has demonstrated outstanding financial performance, with a return of 31.00% year-to-date (YTD) and 63.09% in the last 12 months. Over the past 10 years, the company had an annualized return of 24.58%, outperforming the S&P 500 benchmark, which had an annualized return of 9.99% during the same period.
On the other hand, The Walt Disney Company (NYSE:DIS) has faced challenges in its financial performance, with a return of -4.97% year-to-date (YTD) and -20.99% in the last 12 months. Over the past 10 years, The Walt Disney Company had an annualized return of 3.45%, underperforming the S&P500 index.
In July 2023, The Walt Disney Company (NYSE:DIS)’s CEO Bob Iger extended his contract through 2026, acknowledging the challenges ahead. Iger’s concern about Disney’s TV networks, which he suggested may not be central to Disney’s core, highlights the industry’s shifting priorities. The battle for supremacy in streaming and content distribution will undoubtedly persist, with Netflix, Inc. (NASDAQ:NFLX) at the forefront of innovation and adaptation.
Ensemble Capital Management shared a noteworthy observation about Netflix, Inc. (NASDAQ:NFLX) in their Q2, 2023 investor letter:
“Netflix, Inc. (NASDAQ:NFLX) (+27.5%): Netflix posted a great quarter supported by a positive response to its password sharing crackdown and advertising-supported service rollout. In addition, some of its major competitors have been struggling, including Disney+ which lost subscribers in the first quarter for the first time in its history.”
In the second quarter of 2023, Polen Focus Growth Strategy also turned its attention to stocks like Netflix, Inc. (NASDAQ:NFLX), further emphasizing the streaming giant’s prominence in the investment landscape. In their Q2, 2023 investor letter, Polen Focus Growth Strategy provided the following insight regarding Netflix, Inc. (NASDAQ:NFLX):
“The top absolute contributors to the Portfolio’s performance in the second quarter were Amazon, Netflix, and Microsoft. As mentioned, Amazon and Netflix are seeing their revenue growth accelerate after a difficult 2022 while keeping expense growth in check. We expect robust earnings growth for both companies in 2023 and growth rates in the mid-teens or higher well into the future.”
The Walt Disney Company (NYSE:DIS)’s CEO Bob Iger has also been actively discussing his strategy to bring Disney+ to profitability in recent earnings calls and interviews. A notable component of this plan is the integration of advertising within the Disney+ platform. Recognizing the need to evolve in the competitive streaming landscape, Iger’s emphasis on advertising reflects Walt Disney Company (NYSE:DIS)’s commitment to adapt and thrive in the evolving market.
Investor attention is now shifting toward legacy media companies like Paramount Global (NASDAQ:PARA) and Comcast Corporation (NASDAQ:CMCSA), all of which possess significant pay-TV network portfolios. Bob Iger’s recent statement that traditional TV may not align with Disney’s core strategy has put these companies in the spotlight, with investors closely monitoring their responses, including the potential consideration of a sale, in the face of a rapidly changing media landscape.
In light of the most recent news and industry trends, it’s time to uncover the 12 best streaming and TV stocks to buy now.
Copyright: lculig / 123RF Stock Photo
Our Methodology
To compile our list of 12 best streaming and TV stocks, we first made a list of all streaming and TV companies in the US. Then, the number of hedge funds that had invested in them during Q2, 2023 was determined through Insider Monkey’s database of 943 hedge funds. We then ranked based on the number of hedge funds holding stakes in them in ascending order.
12 Best Streaming and TV Stocks To Buy Now
here is the list of the 12 best streaming and TV stocks to buy now.
12. FuboTV Inc (NYSE:FUBO)
Number of Hedge Funds In Q2 2023: 13
FuboTV, a live-streaming television service with a primary focus on channels offering live sports content, caters to customers in the United States, Canada, and Spain, providing access to various sports leagues and tournaments.
In its most recent earnings report of Q2, 2023, Fubo outperformed expectations in North America, achieving a total revenue of $305 million, marking a significant 41% increase compared to the same quarter in the previous year. Additionally, they garnered a total of 1,167,000 paid subscribers.
On Sep. 13, 2023, technology analyst Darren Aftahi from Roth MKM held a “Hold” rating for FuboTV and set a $3.00 price target.
11. iQIYI, Inc. (NASDAQ:IQ)
Number of Hedge Funds In Q2 2023: 20
iQIYI, Inc. (NASDAQ:IQ) is a streaming service renowned for its diverse content library, which includes a wide array of Asian dramas, movies, variety shows, and anime, all complemented by subtitles and dubbing for a global audience.
On August 23, 2023, Charlene Liu, an analyst at HSBC, reduced the price target for iQIYI (NASDAQ: IQ) to $5.60, down from the previous target of $5.80, all the while keeping a “Hold” rating for the stock. This assessment suggests that iQIYI, Inc. (NASDAQ:IQ) remains an attractive investment option, although it may face some revised expectations.
Furthermore, within the realm of hedge fund investments, it’s notable that as of Q2, 2023, 20 out of 910 hedge funds tracked by Insider Monkey held stake in iQIYI, Inc. (NASDAQ:IQ). Among these funds, Farallon Capital stands out as a major player, holding the majority of iQIYI Inc. shares amongst hedge funds with a total value of $182 million.
10. Roku, Inc. (NASDAQ:ROKU)
Number of Hedge Funds In Q2 2023: 29
Roku, Inc. (NASDAQ:ROKU) is an American company headquartered in San Jose, California, specializing in the manufacturing and sale of digital media players for video streaming and audio equipment.
As of Q2, 2023, data from Insider Monkey revealed that 29 out of the 910 hedge funds tracked by the platform had stake in Roku, Inc. (NASDAQ:ROKU). In addition to strategic partnerships, Roku, Inc. (NASDAQ:ROKU) made a significant move in November 2019 by acquiring the video advertising platform Dataxu for $150 million in cash.
As of September 7, JPMorgan analyst Cory Carpenter increased the price target for the stock, upping it from $95 to $100. The analyst anticipates several potential positive catalysts on the horizon, including the resolution of Hollywood strikes, the ramping up of third-party partnerships in 2024, and ongoing media carriage disputes that could further accelerate the shift towards streaming.
9. DISH Network Corporation (NASDAQ:DISH)
Number of Hedge Funds In Q2 2023: 33
DISH Network Corporation (NASDAQ:DISH), an American television provider, offers a range of services, including satellite television through its subsidiary Dish Network, over-the-top IPTV service through Sling TV, and mobile wireless service via Dish Wireless.
On Aug. 22, 2023, RBC Capital analyst Jonathan Atkin maintained a “Hold” rating for DISH Network Corporation (NASDAQ:DISH) and set a price target of $7.00.
In terms of DISH Network Corporation (NASDAQ:DISH)’s recent financial performance, for Q2 2023, the company reported a quarterly revenue of $3.91 billion and a net profit of $200.32 million for the quarter ending on June 30. This represents a notable decline from Q2 2022, during that quarter, the company reported a revenue of $4.21 billion and a net profit of $522.83 million.
Furthermore, according to data from the Insider Monkey database, Marshall Wace LLP is the primary holder of DISH Network Corporation (NASDAQ:DISH) shares, owning a total of 11,305,711 shares. As of Q2, 2023, 33 funds out of the 910 tracked by Insider Monkey held stake in DISH Network Corporation (NASDAQ:DISH).
8. Paramount Global (NASDAQ:PARA)
Number of Hedge Funds In Q2 2023: 39
Paramount Global (NASDAQ:PARA), a multinational mass media company, is best known for its subsidiary, Paramount+. In the second quarter of 2023, Paramount+ added 700,000 new subscribers, reaching a total of 61 million subscribers.
Berkshire Hathaway, led by legendary investor Warren Buffett, is the largest stakeholder in Paramount Global (NASDAQ:PARA), holding a stake valued at $1.4 billion as of the second quarter of 2023. It is one of the top tv and streaming stocks.
Ariel Appreciation Fund made the following comment about Paramount Global (NASDAQ:PARA) in its Q2 2023 investor letter:
“We also added former holding Paramount Global (NASDAQ:PARA)) in the period. Shares tumbled following a lackluster earnings report and subsequent dividend cut, presenting an attractive entry point in this leading entertainment company. PARA’s Filmed Entertainment business has an exciting upcoming 2023 and 2024 movie slate with many high-profile franchises. Its TV Media segment is undergoing a restructuring to save on costs and PARA’s fresh array of global content is driving subscriber momentum worldwide across its direct-to-consumer platform. Meanwhile, management is magnifying its focus on profitability for the streaming service and moderating investments in content, which should drive free cash flow in 2024 and beyond. In our view, the company’s long-term opportunity in streaming and the value of its proprietary content remain meaningfully underappreciated at current trading levels.”
7. Comcast Corporation (NASDAQ:CMCSA)
Number of Hedge Funds In Q2 2023: 66
Comcast Corporation (NASDAQ:CMCSA), an American multinational telecommunications and media conglomerate, holds the distinction of being the largest pay-TV company, the largest cable TV company, and the largest home Internet service provider in the United States.
On August 9, 2023, Argus Research, a notable financial analysis firm, issued an updated price target for Comcast Corporation (NASDAQ:CMCSA). Argus Research analyst Joseph Bonner, in light of his evaluation, reiterated a “Buy” rating for Comcast Corporation (NASDAQ:CMCSA) and raised the price target from $45 to $50.
This adjustment in the price target indicates a more optimistic outlook for the company’s performance. Investors may interpret this upgrade as a shift towards a less bearish stance on Comcast Corporation (NASDAQ:CMCSA), and they are likely to closely monitor the company’s future performance.
In the second quarter of 2023, 66 hedge funds held stake in Comcast Corporation (NASDAQ:CMCSA). Among these, First Eagle Investment Management was a prominent fund, holding a total of 32,452,337 shares. The hedge fund sentiment reflects that Comcast is one of the best tv and streaming stocks.
6. Warner Bros. Discovery, Inc. (NASDAQ:WBD)
Number of Hedge Funds In Q2 2023: 67
On August 8, 2023, Barclays analyst Kannan Venkateshwar made adjustments to their evaluation of Warner Bros. Discovery, Inc. (NASDAQ:WBD). The analyst raised the price target on Warner Bros. Discovery, Inc. (NASDAQ:WBD) from $14 to $15 while maintaining their “Hold” rating on the stock.
Venkateshwar’s analysis was based on Warner Bros. Discovery’s Q2 2023 earnings, which were reported on August 3, 2023. In his evaluation, he placed particular emphasis on the company’s top-line performance. The analyst acknowledged that licensing revenues had contributed positively to the quarter’s results, but he also highlighted the ongoing challenges faced by core media trends. Looking ahead to streaming growth for FY 2024, Venkateshwar expressed the view that it hinges on the success of implementing sharp price increases as normalized content and marketing investments decrease.
Looking ahead, Warner Bros. Discovery, Inc. (NASDAQ:WBD)’s management provided guidance for the third quarter of 2023, anticipating adjusted EBITDA in the range of the low end of $11 billion to $11.5 billion, accompanied by free cash flow estimated at $1.7 billion. Additionally, for the fiscal year 2023, the company expects adjusted EBITDA to be “U.S. DTC profitable” and segment losses to amount to a couple of hundred million dollars. Furthermore, the company anticipates free cash flow ranging from $4.5 billion to $5.0 billion for the full year.
As of Q2 2023, a total of 67 funds among the 910 tracked by us had invested in Warner Bros. Discovery, Inc. (NASDAQ:WBD). This data reflects a significant level of institutional interest in the company, underscoring its prominence within the investment landscape.
Moreover, the Longleaf Partners Fund provided the following commentary regarding Warner Bros. Discovery, Inc. (NASDAQ: WBD) in its investor letter for the second quarter of 2023:
“Warner Bros. Discovery, Inc. (NASDAQ:WBD) – Media conglomerate Warner Bros Discovery was the top detractor in the quarter but remained a top contributor for the first half. After a strong first quarter, the stock price faltered in the face of near-term uncertainty around the re-launch of streaming service Max. Additionally, the big budget movie The Flash has not been a success. Finally, there was well-publicized drama around CNN management, with CNN CEO Chris Licht leaving the company after only one year, which we believe was a positive resolution. The company remains dramatically undervalued today, and management continues to make positive operational progress to drive free cash flow (FCF) growth. We believe this company has seen the worst so will be less leveraged and more strategically positioned in the quarters and years to come. Its underlying holdings are high quality businesses that will drive FCF per share growth while also being attractive acquisition candidates.”
5. Disney+ by The Walt Disney Company (NYSE:DIS)
Number of Hedge Funds In Q2 2023: 92
In the second quarter of 2023, according to our database, a total of 92 hedge funds demonstrated their confidence in The Walt Disney Company (NYSE:DIS), collectively holding a substantial stake with a total value of $2.2 billion.
The Walt Disney Company’s Disney+ is one of the most successful streaming services in the US. Its launch time of November, 2019 is often regarded as a shrewed business decision because of the momentum that MCU content had at the conclusion of Phase 3, which included movies like Infinity War and Endgame. Many of these were some of the highest grossing movies of all time.
The launch of Disney+ saw multiple spinoffs for characters from Phase 3, which included shows like WandaVision, The Falcon and the Winter Soldier and Loki, among a number of others. These shows kept marvel fans on the hook and resulted in Disney+ rapidly gaining high subscription numbers. However, as of late, the subscriber count has fell to 146 million.
On September 20, 2023, analyst Barton Crockett of Rosenblatt made an unconventional move regarding Walt Disney (NYSE:DIS). Despite Disney’s recent stock price decline, which marked its lowest point in more than three years, Crockett opted to retain a Buy rating on the company. Nevertheless, he did revise down the price target slightly, reducing it from $104 to $103. Crockett’s confidence in Disney is rooted in his conviction that the company’s asset value remains fundamentally strong.
However, as of September 6, 2023, the stock of The Walt Disney Company (NYSE:DIS) concluded trading at $80.98 per share. Over the course of the past month, the stock displayed a one-month return of -7.44%, and its overall performance over the past year reflected a decline of 28.14% in share value. Currently, The Walt Disney Company (NYSE:DIS) currently has a market capitalization of $148.176 billion.
In its Q2 2023 investor letter, Diamond Hill Large Cap Strategy provided the following commentary regarding The Walt Disney Company (NYSE:DIS):
“Our bottom contributors in Q2 included health insurance company Humana, biopharmaceutical company Pfizer and global entertainment company The Walt Disney Company (NYSE:DIS). Disney’s Bob Iger returned to the CEO’s seat in November 2022, replacing Bob Chapek, who left following a turbulent tenure. As a result of disappointing quarterly results and incremental commentary suggesting a more inline strategy with other media, the market has become less confident that Iger will achieve a turnaround by the end of his 1.5- year contract. We continue to believe Disney has a unique collection of assets and owns some of the best content among all media companies. Their ability to monetize this content across many platforms — studio, theme park, toys, streaming — is incredibly valuable; thus we remain investors.”
4. Netflix, Inc (NASDAQ:NFLX)
Number of Hedge Funds In Q2 2023: 114
Netflix, Inc (NASDAQ:NFLX) is an American subscription video-on-demand over-the-top streaming service that primarily distributes films and television series produced by the media company of the same name from various countries.
On August 25, 2023, Alan Gould, an analyst at Loop Capital, upgraded the stock from ‘Hold’ to ‘Buy’ and increased his price target to $500. This upgrade is underpinned by improved fundamentals and compelling valuation as catalysts. Gould highlighted Netflix’s potential to thrive amid increasing competition, where many of its competitors are raising prices for their streaming services while reducing spending on content.
Netflix’s robust content pipeline and global production capabilities position it as one of the most resilient players in the media industry, particularly in the face of ongoing writer and actor strikes. Gould believes that the growing popularity of streaming and the decline of traditional TV may further enhance Netflix’s growth prospects.
According to Insider Monkey’s database, in the second quarter of 2023, a total of 114 hedge funds had stake in Netflix, Inc (NASDAQ:NFLX), showcasing continued investor interest in the streaming giant. Among these, Eagle Capital Management held the largest share, valued at an impressive $1.49 billion.
3. Apple TV+ by Apple Inc. (NASDAQ:AAPL)
Number of Hedge Funds In Q2 2023: 135
Apple Inc. (NASDAQ:AAPL) is heavily investing in original content production for its streaming platform, Apple TV+. However, uncertainty lingers about the long-term viability of this strategy. Specific financial data for TV+ remains undisclosed, prompting industry analysts to offer estimates. According to Barclays analyst Tim Long, TV+ currently constitutes around 2% of Apple’s services revenue, with estimated 2022 revenue of $1.5 billion, projected to rise to $2.2 billion in 2023. Notably, Apple’s total services revenue for the fiscal year ending in September 2022 was $78 billion.
Long suggests that TV+ likely operates with negative profit margins, resulting in an estimated loss of approximately 30 cents per share in 2022. These losses are anticipated to persist until 2025 due to substantial content investment, totaling $4.8 billion in 2022, $5.8 billion in 2023, and $6.6 billion in the following year.
Nevertheless, there is optimism regarding potential growth. Long indicates that TV+ is experiencing rapid annual revenue growth of approximately 30%, surpassing the industry’s typical growth rate of around 10%. In 2023, a 52% revenue increase is projected, partly attributed to a subscription price increase from $4.99 to $6.99 per month in October 2022.
Furthermore, Apple’s venture into sports content, including exclusive deals with Major League Soccer and broadcasting rights for Friday night Major League Baseball games, may pave the way for future advertising opportunities on TV+, potentially generating significant revenue for the platform.
2. Google TV by Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Funds In Q2 2023: 204
Alphabet Inc. (NASDAQ:GOOGL) is a massive and highly successful tech company known for Google, which is its primary business. Google’s search engine is the most popular one globally. Besides that, they offer various services like email, online storage, maps, ads, and hardware products. Google TV is a platform for watching TV shows and movies on smart TVs and streaming devices.
In April 2023, Google announced a strategic move to enhance its Google TV software by introducing over 800 free channels. This expansion is being integrated into the Chromecast streaming device and select television models manufactured by Sony, CL, Hisense, and Philips. The initiative involves aggregating numerous existing free TV services, including Fox’s Tubi, Paramount Global’s Pluto TV, and Haystack News, within the Google TV platform. This move serves to distinguish Google’s streaming interface from competitors such as Roku, Apple, and Amazon, and may entice individuals who prefer not to subscribe to paid streaming services. This service rollout is initially focused on the U.S. market.
On August 31, 2023, Bank of America (BofA) increased its target price for Alphabet Inc. (NASDAQ:GOOGL) stock from $142 to $146 and recommended buying the shares. According to data from Insider Monkey, as of the end of the second quarter of 2023, 204 hedge funds had invested in Alphabet Inc. (NASDAQ:GOOGL). This shows that many big investors believe in Alphabet’s future success in the tech world.
1. Prime Video by Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Funds In Q2 2023: 278
Prime Video by Amazon is the 2nd biggest streaming platform, with over 200 million subscribers, after Netflix, which has 238 million subscribers.
On September 13, 2023, Morgan Stanley analyst Brian Nowak had an “Overweight” rating for Amazon and maintained a price target of $175.00. Furthermore, as of the second quarter of 2023, data from Insider Monkey reveals that a notable 278 out of 910 hedge funds had stakes in Amazon.com, Inc. (NASDAQ:AMZN).
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Disclosure: None. 12 Best Streaming and TV Stocks To Buy Now is originally published on Insider Monkey.
