3 Streaming Giants Ending the Year on a High Note The video streaming industry is rapidly evolving, driven by technological advancements and a surge in on-demand content. In this ever-evolving dynamic industry, fundamentally robust streaming stocks Amazon (AMZN), Netflix (NFLX),...
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The video streaming industry is rapidly evolving, driven by technological advancements and a surge in on-demand content. In this ever-evolving dynamic industry, fundamentally robust streaming stocks Amazon (AMZN), Netflix (NFLX), and Disney (DIS) could be solid buys. Keep reading.
The video streaming industry is rapidly transforming, driven by growing global internet access, advancements in technology, and the increasing popularity of on-demand content among consumers.
As the year ends, leading streaming stocks like Amazon.com, Inc. (AMZN), Netflix, Inc. (NFLX), and The Walt Disney Company (DIS), which are leveraging these trends and offering innovative solutions to cater to the evolving tastes of global viewers, could be smart investment options at this time.
The video streaming industry is thriving, driven by the convenience and variety offered by platforms. The rise of subscription-based models and interactive features has significantly boosted digital content consumption. Enhanced internet connectivity, widespread smart device usage, and the shift to on-demand viewing have further increased accessibility and fueled growth.
In 2024, the global video streaming market is valued at approximately $674.25 billion and is expected to grow at a CAGR of 18.7% between 2024 and 2032, reaching an estimated value of $2.66 trillion, highlighting substantial opportunities within this dynamic industry.
Given these favorable trends, let’s take a closer look at the Streaming Stocks.
Amazon.com, Inc. (AMZN)
AMZN operates globally through its retail, advertising, and subscription services. A dominant force in the entertainment industry, AMZN leverages a diverse portfolio that includes streaming, digital media, gaming, and entertainment services. As the parent company of Amazon Prime Video, it provides an extensive selection of movies, TV shows, and original content, along with exclusive premium offerings such as live sports events through Amazon Prime Sports.
On December 9, AMZN and Intuit Inc. (INTU) announced a multi-year partnership to support Amazon sellers with Intuit’s AI-driven platform, offering financial management tools, compliance support, and capital access. This collaboration aims to provide sellers with insights into profitability, cash flow, and tax liabilities to drive business growth.
On December 4, Amazon Web Services (AWS) and Grab Holdings Limited (GRAB) announced a strategic partnership, with Grab selecting AWS as its preferred cloud provider. This collaboration will enable Grab to leverage AWS to drive growth in its mobility, delivery, and financial services.
During the fiscal third quarter that ended September 30, 2024, AMZN’s total net sales increased 11% year-over-year to $158.88 billion. Its operating income grew 55.6% from the year-ago value to $17.41 billion. In addition, the company’s net income and EPS came in at $15.33 billion and $1.43, up 55.2% and 52.1% over the prior-year quarter, respectively.
Market expect AMZN’s EPS and revenue for the fourth quarter ending December 31, 2024, to increase 47.3% and 10.2% year-over-year to $1.47 and $187.24 billion, respectively. It surpassed the Street EPS estimates in each of the trailing four quarters, which is impressive.
Over the past year, the stock has gained 57.8% to close the last trading session at $230.26. It soared 51.5% year-to-date.
AMZN’s POWR Ratings reflect its robust outlook. The stock has an overall rating of B, equating to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.
AMZN has an A grade in Sentiment and a B in Growth, Momentum, and Quality. It is ranked #15 out of 51 stocks in the A-rated Internet industry.
In addition, one can access AMZN’s grades for Value and Stability here.
Netflix, Inc. (NFLX)
NFLX delivers a diverse range of entertainment products, including TV series, documentaries, feature films, and games, catering to audiences across various genres and languages.
On December 3, NFLX and Domino's Pizza (DPZ) teamed up to promote the upcoming Squid Game season two by offering free Emergency Pizza for a year to low-scoring players at Squid Game: The Experience.
During the fiscal third quarter that ended September 30, 2024, NFLX’s revenue increased 15% year-over-year to $9.83 million. Its operating income grew 51.8% from the year-ago value to $2.91 million. In addition, the company’s net income and EPS came in at $2.36 million and $5.40, up 41% and 44.8% over the prior-year quarter, respectively.
Street expects NFLX’s EPS and revenue for the fourth quarter ending December 31, 2024, to increase 100.1% and 14.8% year-over-year to $4.22 and $10.14 billion, respectively. It surpassed the Street revenue estimates in each of the trailing four quarters.
Over the past year, the stock has gained 103.7% to close the last trading session at $936.56. It soared 92.4% year-to-date.
NFLX’s POWR Ratings reflect strong prospects. The stock has an overall rating of B, equating to a Buy in our proprietary rating system.
NFLX has a B grade in Quality. It is ranked #20 out of 51 stocks in the Internet industry.
Beyond what we have stated above, we also have given NFLX grades for Growth, Value, Momentum, Stability, and Sentiment. Get all the NFLX’s ratings here.
The Walt Disney Company (DIS)
DIS offers a diverse range of entertainment products, including films, television content, streaming services, live events, theme parks, resorts, and merchandise. These products cater to global audiences, including families, sports enthusiasts, and entertainment consumers of all ages.
On December 4, DIS announced a 33% increase in its cash dividend, declaring $1 per share compared to $0.75 in fiscal year 2024, which is payable on January 16, 2025. It pays an annual dividend of $1, which translates to a dividend yield of 0.87% at the prevailing price levels.
On November 14, the merger of Viacom18's media and JioCinema businesses into Star India Private Limited, along with Reliance Industries' $1.36 billion investment, created a joint venture valued at $8.5 billion. This collaboration strengthened DIS's position in India by expanding its market reach and leveraging local synergies.
DIS’ revenues increased 6.3% year-over-year to $22.57 billion in the fiscal 2024 fourth quarter that ended on September 28, 2024. Its income before income taxes came in at $948 million. Net income and earnings per share attributable to DIS came in at $460 million and $0.25, up 78.6% over the prior-year quarter.
Street expects DIS’ revenue for the fiscal first quarter (ending December 31, 2024) to increase 4.9% year-over-year to $24.70 billion. Its EPS for the same quarter is expected to grow 17.6% from the prior year to $1.43. In addition, it surpassed the consensus revenue estimates in each of the trailing four quarters.
Shares of DIS have gained 24.3% over the past year to close the last trading session at $114.61. It soared 26.9% year-to-date.
DIS’ bright prospects are apparent in its POWR Ratings.
It has an A grade in Sentiment. Within the Entertainment - Media Producers industry, DIS is ranked #9 out of 13 stocks.
Click here to see DIS ratings for Growth, Value, Momentum, Stability, and Quality.
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AMZN shares were unchanged in premarket trading Thursday. Year-to-date, AMZN has gained 51.55%, versus a 29.01% rise in the benchmark S&P 500 index during the same period.
About the Author: Kritika Sarmah
Her interest in risky instruments and passion for writing made Kritika an analyst and financial journalist. She earned her bachelor's degree in commerce and is currently pursuing the CFA program. With her fundamental approach, she aims to help investors identify untapped investment opportunities.
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