In the rapidly evolving digital era, the allure of the best streaming video stocks is undeniable. Delving deeper, the streaming ecosystem extends far beyond just broadcasting content. Behind the scenes of each streaming platform lies a massive network of contributors, from top-tier advertising firms crafting targeted ads to big-data companies analyzing user preferences to enhance streaming experiences. And while naysayers might point out the challenges, such as shaky ad revenue and the current Hollywood hiatus due to union disputes, it’s imperative to see the bigger picture.
Despite these hurdles, several streaming giants have outperformed broader market trends in 2023. Major players are poised for a rebound even if the content supply wanes temporarily. So, if you’re scouting for investment avenues that resonate with modern viewing habits, here’s a look at three of the best streaming video stocks making waves this year.
Disney (DIS)
2020 threw a curveball at Disney (NYSE:DIS), with its theme parks and cruise lines taking a major blow during the pandemic. While many hoped for a quick rebound, its stock dipped considerably, and a series of unfortunate events held it back despite Bob Iger reclaiming the CEO seat. Yet Bob Iger’s return as CEO brought with it a renewed vision. One of Iger’s strategic pivots for Disney involves a strategic shift for its streaming division.
In its most recent quarter, despite the dip in subscribers for the low-priced version of Disney+ in India, the service added 800,000 new subscribers globally. Moreover, to amplify value, the monthly charge for the ad-free Disney+ variant was raised to $11 with another hike on the horizon. Coupled with initiatives to restrict password sharing, it seems Disney is poised for solid gains in the streaming realm.
Netflix (NFLX)
Streaming pioneer Netflix (NASDAQ:NFLX) continues to turn heads in its niche with astute, strategic moves. The firm has essentially catalyzed a resurgence in its growth trajectory by introducing an affordable ad-supported tier and tightening the reins on password sharing. For the second quarter, not only did Netflix report an earnings-per-share of $3.29, outpacing expectations of $2.86, but its revenue also climbed by 3%, reaching a noteworthy $8.19 billion.
However, it added a stellar 5.9 million subscribers, blowing past Wall Street’s prediction of 1.9 million. This surge represents Netflix’s most significant second-quarter growth since the onset of the pandemic in 2020. With the subscriber count now teetering close to 240 million globally, Netflix seems better poised than most of its peers to effectively weather the headwinds in the entertainment sector. Also, if the numbers tell a tale, NFLX stock’s staggering ascent of more than 60% over the past year spins quite the success story.
Paramount (PARA)
Paramount (NASDAQ:PARA) is a beacon of adaptability and forward-thinking in the streaming realm. The strength of its direct-to-consumer model remains palpable, with the streaming division witnessing bumps in sales and a buzzing user base. Anchored by a treasure trove of content spanning over a century, Paramount blends its heritage with a modern revenue trifecta of subscription, advertising, and licensing. Additionally, the synergy between Paramount+ and Showtime is a stroke of genius, driving cost efficiencies while improving consumer rapport and product distinction.
Its second-quarter figures echo this success story. A whopping 40% growth catapulted direct-to-consumer revenues to a hefty $1.67 billion. Paramount+, the digital vanguard, recorded a stellar 47% growth, boasting 61 million subscribers. Moreover, as it crafts an effective balance between streaming expansion and honing traditional segments, its vision for 2024 is clear. Hence, Paramount isn’t merely a stock to watch. It’s an investment luminary that promises many dividends.
On the date of publication, Muslim Farooque did not have (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.