12 Best News and Digital Media Stocks To Buy

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1. Netflix, Inc. (NASDAQ:NFLX)

Number of Hedge Fund Holders: 121

Netflix, Inc. (NASDAQ:NFLX) provides entertainment services through paid memberships in around 190 countries worldwide. It acquires, produces, and licenses content for streaming, including original programming. Netflix had very healthy consumer engagement in 2024, with around two hours of viewing per member per day. Its engagement on a per-owner household basis was up to the first three quarters of 2024.

Netflix’s ad-tier memberships grew by 35% quarter-over-quarter. Netflix, Inc. (NASDAQ:NFLX) is on track to launch the service in Canada in fiscal Q4 2024 and, more broadly, in fiscal 2025. The company added 5.1 million subscribers during fiscal Q3 2024, surpassing analyst expectations. It now has a total of 282.7 million memberships across all of its pricing tiers.

The streaming platform’s ease and market popularity lends it a substantial competitive advantage. It has established itself as a household name and has a strong operational model in place. Building on these trends, Netflix, Inc. (NASDAQ:NFLX) is projecting revenue for fiscal 2025 to be between $43 billion and $44 billion. To attain this goal, it is improving its core films and series offerings and investing in new initiatives such as gaming and ads. The company expects much of its revenue growth to come from a healthy increase in paid memberships.

Overall, NFLX ranks first among the 12 best news and digital media stocks to buy. While we acknowledge the potential of news and digital media stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NFLX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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