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12 Best Streaming and TV Stocks To Buy Now

In this article, we will discuss the 12 best streaming and TV stocks to buy now. If you want to skip our detailed analysis of the streaming industry and recent trends shaping the streaming market, go directly to 5 Best Streaming and TV Stocks To Buy Now

Streaming has become an integral part of our daily lives, from watching movies and TV shows to listening to music and playing games. The rise of streaming services has been incredible, and there are no signs of slowing down. The streaming market size is projected to grow to $1.9 trillion by 2028, as noted by Fortune Business Insights. This remarkable growth is a testament to the profound impact streaming has had on our entertainment habits. In fact, if anything, the pace of change in streaming is only going to quicken, and the future is going to be even more exciting, going by some of the emerging trends and technologies on the horizon.

Exponential advances in technology have changed entire industries, especially over the past 10 to 15 years. For example, Netflix, Inc. (NASDAQ:NFLX), Amazon.com, Inc. (NASDAQ:AMZN)’s Prime Video, Hulu, and other digital channels or streaming services have acted as massive disruptive forces within the media and television industries. 

Netflix, Inc. (NASDAQ:NFLX) maintains a strong competitive edge compared to legacy media giants, as switching to streaming services for entertainment becomes more dominant. Netflix has demonstrated outstanding financial performance, with a return of 31.00% year-to-date (YTD) and 63.09% in the last 12 months. Over the past 10 years, the company had an annualized return of 24.58%, outperforming the S&P 500 benchmark, which had an annualized return of 9.99% during the same period.

On the other hand, The Walt Disney Company (NYSE:DIS) has faced challenges in its financial performance, with a return of -4.97% year-to-date (YTD) and -20.99% in the last 12 months. Over the past 10 years, The Walt Disney Company had an annualized return of 3.45%, underperforming the S&P500 index.

In July 2023, The Walt Disney Company (NYSE:DIS)’s CEO Bob Iger extended his contract through 2026, acknowledging the challenges ahead. Iger’s concern about Disney’s TV networks, which he suggested may not be central to Disney’s core, highlights the industry’s shifting priorities. The battle for supremacy in streaming and content distribution will undoubtedly persist, with Netflix, Inc. (NASDAQ:NFLX) at the forefront of innovation and adaptation.

Ensemble Capital Management shared a noteworthy observation about Netflix, Inc. (NASDAQ:NFLX) in their Q2, 2023 investor letter

“Netflix, Inc. (NASDAQ:NFLX) (+27.5%): Netflix posted a great quarter supported by a positive response to its password sharing crackdown and advertising-supported service rollout. In addition, some of its major competitors have been struggling, including Disney+ which lost subscribers in the first quarter for the first time in its history.”

In the second quarter of 2023, Polen Focus Growth Strategy also turned its attention to stocks like Netflix, Inc. (NASDAQ:NFLX), further emphasizing the streaming giant’s prominence in the investment landscape. In their Q2, 2023 investor letter, Polen Focus Growth Strategy provided the following insight regarding Netflix, Inc. (NASDAQ:NFLX): 

“The top absolute contributors to the Portfolio’s performance in the second quarter were Amazon, Netflix, and Microsoft. As mentioned, Amazon and Netflix are seeing their revenue growth accelerate after a difficult 2022 while keeping expense growth in check. We expect robust earnings growth for both companies in 2023 and growth rates in the mid-teens or higher well into the future.”

The Walt Disney Company (NYSE:DIS)’s CEO Bob Iger has also been actively discussing his strategy to bring Disney+ to profitability in recent earnings calls and interviews. A notable component of this plan is the integration of advertising within the Disney+ platform. Recognizing the need to evolve in the competitive streaming landscape, Iger’s emphasis on advertising reflects Walt Disney Company (NYSE:DIS)’s commitment to adapt and thrive in the evolving market.

Investor attention is now shifting toward legacy media companies like Paramount Global (NASDAQ:PARA) and Comcast Corporation (NASDAQ:CMCSA), all of which possess significant pay-TV network portfolios. Bob Iger’s recent statement that traditional TV may not align with Disney’s core strategy has put these companies in the spotlight, with investors closely monitoring their responses, including the potential consideration of a sale, in the face of a rapidly changing media landscape.

In light of the most recent news and industry trends, it’s time to uncover the 12 best streaming and TV stocks to buy now.

Our Methodology

To compile our list of 12 best streaming and TV stocks, we first made a list of all streaming and TV companies in the US. Then, the number of hedge funds that had invested in them during Q2, 2023 was determined through Insider Monkey’s database of 943 hedge funds. We then ranked based on the number of hedge funds holding stakes in them in ascending order.

12 Best Streaming and TV Stocks To Buy Now

here is the list of the 12 best streaming and TV stocks to buy now. 

12. FuboTV Inc (NYSE:FUBO)

Number of Hedge Funds In Q2 2023: 13 

FuboTV, a live-streaming television service with a primary focus on channels offering live sports content, caters to customers in the United States, Canada, and Spain, providing access to various sports leagues and tournaments. 

In its most recent earnings report of Q2, 2023, Fubo outperformed expectations in North America, achieving a total revenue of $305 million, marking a significant 41% increase compared to the same quarter in the previous year. Additionally, they garnered a total of 1,167,000 paid subscribers.

On Sep. 13, 2023, technology analyst Darren Aftahi from Roth MKM held a “Hold” rating for FuboTV and set a $3.00 price target. 

11. iQIYI, Inc. (NASDAQ:IQ)

Number of Hedge Funds In Q2 2023: 20

iQIYI, Inc. (NASDAQ:IQ) is a streaming service renowned for its diverse content library, which includes a wide array of Asian dramas, movies, variety shows, and anime, all complemented by subtitles and dubbing for a global audience.

On August 23, 2023, Charlene Liu, an analyst at HSBC, reduced the price target for iQIYI (NASDAQ: IQ) to $5.60, down from the previous target of $5.80, all the while keeping a “Hold” rating for the stock. This assessment suggests that iQIYI, Inc. (NASDAQ:IQ) remains an attractive investment option, although it may face some revised expectations.

Furthermore, within the realm of hedge fund investments, it’s notable that as of Q2, 2023, 20 out of 910 hedge funds tracked by Insider Monkey held stake in iQIYI, Inc. (NASDAQ:IQ). Among these funds, Farallon Capital stands out as a major player, holding the majority of iQIYI Inc. shares amongst hedge funds with a total value of $182 million.

10. Roku, Inc. (NASDAQ:ROKU)

Number of Hedge Funds In Q2 2023: 29

Roku, Inc. (NASDAQ:ROKU) is an American company headquartered in San Jose, California, specializing in the manufacturing and sale of digital media players for video streaming and audio equipment. 

As of Q2, 2023, data from Insider Monkey revealed that 29 out of the 910 hedge funds tracked by the platform had stake in Roku, Inc. (NASDAQ:ROKU). In addition to strategic partnerships, Roku, Inc. (NASDAQ:ROKU) made a significant move in November 2019 by acquiring the video advertising platform Dataxu for $150 million in cash. 

As of September 7, JPMorgan analyst Cory Carpenter increased the price target for the stock, upping it from $95 to $100. The analyst anticipates several potential positive catalysts on the horizon, including the resolution of Hollywood strikes, the ramping up of third-party partnerships in 2024, and ongoing media carriage disputes that could further accelerate the shift towards streaming.

9. DISH Network Corporation (NASDAQ:DISH)

Number of Hedge Funds In Q2 2023: 33

DISH Network Corporation (NASDAQ:DISH), an American television provider, offers a range of services, including satellite television through its subsidiary Dish Network, over-the-top IPTV service through Sling TV, and mobile wireless service via Dish Wireless.

On Aug. 22, 2023, RBC Capital analyst Jonathan Atkin maintained a “Hold” rating for DISH Network Corporation (NASDAQ:DISH) and set a price target of $7.00. 

In terms of DISH Network Corporation (NASDAQ:DISH)’s recent financial performance, for Q2 2023, the company reported a quarterly revenue of $3.91 billion and a net profit of $200.32 million for the quarter ending on June 30. This represents a notable decline from Q2 2022, during that quarter, the company reported a revenue of $4.21 billion and a net profit of $522.83 million.

Furthermore, according to data from the Insider Monkey database, Marshall Wace LLP is the primary holder of DISH Network Corporation (NASDAQ:DISH) shares, owning a total of 11,305,711 shares. As of Q2, 2023, 33 funds out of the 910 tracked by Insider Monkey held stake in DISH Network Corporation (NASDAQ:DISH).

8. Paramount Global (NASDAQ:PARA)

Number of Hedge Funds In Q2 2023: 39

Paramount Global (NASDAQ:PARA), a multinational mass media company, is best known for its subsidiary, Paramount+. In the second quarter of 2023, Paramount+ added 700,000 new subscribers, reaching a total of 61 million subscribers. 

Berkshire Hathaway, led by legendary investor Warren Buffett, is the largest stakeholder in Paramount Global (NASDAQ:PARA), holding a stake valued at $1.4 billion as of the second quarter of 2023. It is one of the top tv and streaming stocks

Ariel Appreciation Fund made the following comment about Paramount Global (NASDAQ:PARA) in its Q2 2023 investor letter:

“We also added former holding Paramount Global (NASDAQ:PARA)) in the period. Shares tumbled following a lackluster earnings report and subsequent dividend cut, presenting an attractive entry point in this leading entertainment company. PARA’s Filmed Entertainment business has an exciting upcoming 2023 and 2024 movie slate with many high-profile franchises. Its TV Media segment is undergoing a restructuring to save on costs and PARA’s fresh array of global content is driving subscriber momentum worldwide across its direct-to-consumer platform. Meanwhile, management is magnifying its focus on profitability for the streaming service and moderating investments in content, which should drive free cash flow in 2024 and beyond. In our view, the company’s long-term opportunity in streaming and the value of its proprietary content remain meaningfully underappreciated at current trading levels.”

7. Comcast Corporation (NASDAQ:CMCSA)

Number of Hedge Funds In Q2 2023: 66

Comcast Corporation (NASDAQ:CMCSA), an American multinational telecommunications and media conglomerate, holds the distinction of being the largest pay-TV company, the largest cable TV company, and the largest home Internet service provider in the United States.

On August 9, 2023, Argus Research, a notable financial analysis firm, issued an updated price target for Comcast Corporation (NASDAQ:CMCSA). Argus Research analyst Joseph Bonner, in light of his evaluation, reiterated a “Buy” rating for Comcast Corporation (NASDAQ:CMCSA) and raised the price target from $45 to $50.

This adjustment in the price target indicates a more optimistic outlook for the company’s performance. Investors may interpret this upgrade as a shift towards a less bearish stance on Comcast Corporation (NASDAQ:CMCSA), and they are likely to closely monitor the company’s future performance.

In the second quarter of 2023, 66 hedge funds held stake in Comcast Corporation (NASDAQ:CMCSA). Among these, First Eagle Investment Management was a prominent fund, holding a total of 32,452,337 shares. The hedge fund sentiment reflects that Comcast is one of the best tv and streaming stocks.

6. Warner Bros. Discovery, Inc. (NASDAQ:WBD)

Number of Hedge Funds In Q2 2023: 67

On August 8, 2023, Barclays analyst Kannan Venkateshwar made adjustments to their evaluation of Warner Bros. Discovery, Inc. (NASDAQ:WBD). The analyst raised the price target on Warner Bros. Discovery, Inc. (NASDAQ:WBD) from $14 to $15 while maintaining their “Hold” rating on the stock. 

Venkateshwar’s analysis was based on Warner Bros. Discovery’s Q2 2023 earnings, which were reported on August 3, 2023. In his evaluation, he placed particular emphasis on the company’s top-line performance. The analyst acknowledged that licensing revenues had contributed positively to the quarter’s results, but he also highlighted the ongoing challenges faced by core media trends. Looking ahead to streaming growth for FY 2024, Venkateshwar expressed the view that it hinges on the success of implementing sharp price increases as normalized content and marketing investments decrease.

Looking ahead, Warner Bros. Discovery, Inc. (NASDAQ:WBD)’s management provided guidance for the third quarter of 2023, anticipating adjusted EBITDA in the range of the low end of $11 billion to $11.5 billion, accompanied by free cash flow estimated at $1.7 billion. Additionally, for the fiscal year 2023, the company expects adjusted EBITDA to be “U.S. DTC profitable” and segment losses to amount to a couple of hundred million dollars. Furthermore, the company anticipates free cash flow ranging from $4.5 billion to $5.0 billion for the full year.

As of Q2 2023, a total of 67 funds among the 910 tracked by us had invested in Warner Bros. Discovery, Inc. (NASDAQ:WBD). This data reflects a significant level of institutional interest in the company, underscoring its prominence within the investment landscape.

Moreover, the Longleaf Partners Fund provided the following commentary regarding Warner Bros. Discovery, Inc. (NASDAQ: WBD) in its investor letter for the second quarter of 2023:

“Warner Bros. Discovery, Inc. (NASDAQ:WBD) – Media conglomerate Warner Bros Discovery was the top detractor in the quarter but remained a top contributor for the first half. After a strong first quarter, the stock price faltered in the face of near-term uncertainty around the re-launch of streaming service Max. Additionally, the big budget movie The Flash has not been a success. Finally, there was well-publicized drama around CNN management, with CNN CEO Chris Licht leaving the company after only one year, which we believe was a positive resolution. The company remains dramatically undervalued today, and management continues to make positive operational progress to drive free cash flow (FCF) growth. We believe this company has seen the worst so will be less leveraged and more strategically positioned in the quarters and years to come. Its underlying holdings are high quality businesses that will drive FCF per share growth while also being attractive acquisition candidates.”

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Disclosure: None. 12 Best Streaming and TV Stocks To Buy Now is originally published on Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

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Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

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The “Toll Booth” Operator of the AI Energy Boom

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A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

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Should I put my money in Artificial Intelligence?

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Click to continue reading…