AMC Entertainment (NYSE:AMC) fans may still hope for a post-pandemic recovery for the movie theater chain, but streaming stocks better than AMC are likely the potentially more profitable wager.
The reasons for this are twofold. First, prospects are mixed for the U.S. box office in 2024.
Instead of a continued rebound to pre-Covid levels, forecasts call for total receipts to decline compared to 2023.
Second, even if movie theaters experience an unforeseen renaissance in popularity, this may not necessarily translate into a rebound for the one time meme stock.
As I’ve argued before, AMC’s dilution spiral will continue to weigh on its stock price performance.
In contrast, consider the following three streaming stocks better than AMC, as they are all capitalizing on the future of entertainment.
Let’s take a look at each one, and see why each one represents a solid buying opportunity at current prices.
Walt Disney (DIS)
Since late last year, the market has warmed back up to Walt Disney (NYSE:DIS) in a big way. While some of this may have to do with an in-progress proxy fight for control of Disney’s board, another factor has likely played a larger role.
That would be increased confidence in the company’s streaming strategy. As revealed in the latest updates to guidance, Disney expects its streaming unit to become profitable by the end of the current fiscal year (ending September 2024).
As I argued earlier this year, even as DIS stock has surged on this promising news, shares may have more room to run.
At least, based on sell-side earnings forecasts. Thanks to streaming growth and cost-cutting measures, earnings could rise by 17.1% next fiscal year. The high end of FY2025 forecasts call for a nearly 40% jump in Disney’s bottom line.
Fox (FOX)
You may be thinking, is Fox (NYSE:FOX) really one of the streaming stocks better than AMC?
After all, Fox’s main operating assets consist of the Fox Broadcasting network and its owned and operated stations, plus cable channels like Fox News and Fox Sports.
However, over the past few years, Fox has materially increased its streaming exposure. In 2020, the company acquired ad-supported streamer Tubi for $440 million.
Fox has since grown the business substantially. Last year, the company rebuffed a $2 billion offer for the platform. More recently, the company has made another big move in the world of streaming.
Fox, along with Disney and Warner Bros Discovery (NASDAQ:WBD) are launching a sports streaming joint venture.
Success with this venture, along with further growth for Tubi, could convince the market to give FOX, trading for only 8.9 times forward earnings, a major re-rating to the upside.
Paramount Global (PARA)
As you may already know, Paramount Global (NASDAQ:PARA) is “in play,” or a potential takeover target.
Both strategic and financial acquirers are interested in the company, for its valuable content library, and the potential with its streaming platforms.
Apollo Global Management (NYSE:APO) recently offered $11 billion for just the company’s film and TV studio. If a bidding war emerges, the ultimate buyer could end up buying out shareholders at a substantial premium to the current trading price of PARA stock.
Even if an acquirer does not buy Paramount outright, a different yet-still profitable catalyst could emerge.
One potential transaction proposal reportedly favored by Paramount Global’s controlling shareholder could result in major management changes.
With a new management team at the helm, Paramount could pull off what Disney is pulling off in streaming. This, in turn, could lead to a big rebound for shares.
On the date of publication, Thomas Niel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.