Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

1 Streaming Stock to Buy and 1 to Avoid

Stock MarketsMay 11, 2021 05:30PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. 1 Streaming Stock to Buy and 1 to Avoid

The rising popularity of entertainment content streaming services over the past year has allowed companies in this space to generate significant returns. However, not all players in this industry have been able to capitalize on the tailwinds. We think collaboration with popular companies and lower-cost subscription choices should help Netflix (NFLX) deliver solid returns in the near-term. But Roku (NASDAQ:ROKU), in contrast, has failed to assert dominance in a highly competitive industry. Let’s discuss.The heightened demand for in-home entertainment allowed over-the-top (OTT) media services to expand their customer bases and grow significantly last year. Owing to improved quality and innovative content, as well as the creeping redundancy of traditional cable channels, global streaming subscriptions have increased 26% year-over-year to surpass 1.1 billion last year.

Furthermore, rising investor interest in streaming companies is evidenced by the iShares Evolved U.S. Media and Entertainment ETF’s (IEME) 60.3% returns over the past year, compared to SPDR S&P 500 ETF Trust’s (SPY) 42.9% gains.

The global video streaming services market is expected to grow at an 11% CAGR over the next five years to reach $108.31 billion by 2025. We believe popular subscription-based streaming service provider Netflix Inc. (NASDAQ:NFLX) is well-positioned to benefit from this heightened demand. However, because of declining financials and low-rated shows, we think Roku, Inc. (ROKU) might struggle to stay afloat.

Continue reading on StockNews

1 Streaming Stock to Buy and 1 to Avoid
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email