In this article, we will discuss the 5 best streaming service stocks to buy. If you want to go through our detailed analysis of the streaming industry and recent trends shaping the streaming market, go directly to 10 Best Streaming Service Stocks To Buy.
5. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 89
Established in 1923, The Walt Disney Company (NYSE:DIS) is a prominent media and entertainment conglomerate renowned for its production and distribution of diverse content, spanning movies, television shows, and animated films. The company is also renowned for its globally acclaimed theme parks. Additionally, The Walt Disney Company (NYSE:DIS) has solidified its position in the streaming market with the launch of its streaming service, Disney+.
On March 28, Needham adjusted its outlook on The Walt Disney Company (NYSE:DIS), raising the price target for the stock from $120.00 to $145.00 while maintaining a buy rating. This upward revision in the price target by Needham reflects the firm’s optimistic view of The Walt Disney Company (NYSE:DIS)’s future growth potential and overall performance in the entertainment industry.
89 out of the 933 hedge funds part of Insider Monkey’s Q4 2023 database had bought the firm’s shares. The Walt Disney Company (NYSE:DIS)’s largest stakeholder among these was Nelson Peltz’s Trian Partners as it owned $2.9 billion worth of shares.
4. Netflix, Inc. (NASDAQ:NFLX)
Number of Hedge Fund Holders: 89
Netflix, Inc. (NASDAQ:NFLX), headquartered in Los Gatos, California, is a leading provider of streaming entertainment services, boasting a vast subscriber base of over 260 million paid memberships spanning across more than 190 countries. The company offers an extensive library of films and television series, including both licensed content and original productions.
In its Q4 2023 financial report released on January 23, Netflix reported robust performance metrics. The company achieved a revenue of $8.8 billion, indicating nearly 12% year-over-year growth, accompanied by a net income of $938 million. Impressively, Netflix, Inc. (NASDAQ:NFLX) added 13.1 million new paid members during the quarter, marking a growth rate of nearly 13%.
As of the end of the fourth quarter of 2023, 89 hedge funds out of the 933 funds tracked by Insider Monkey had stakes in Netflix Inc (NASDAQ:NFLX). The most notable stake in Netflix Inc (NASDAQ:NFLX) is owned by Ken Fisher’s Fisher Asset Management which owns a $2 billion stake in Netflix Inc (NASDAQ:NFLX).
Sequoia Fund stated the following regarding Netflix, Inc. (NASDAQ:NFLX) in its fourth quarter 2023 investor letter:
“Exits last year included Netflix, Inc. (NASDAQ:NFLX), Bank of America and Micron. We opportunistically added to our Netflix position in late 2022, near what turned out to be the lows. We sold our shares in stages over the course of last year as the stock price recovered and the valuation of the business rose dramatically.”
3. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 131
Apple Inc. (NASDAQ:AAPL) stands as a prominent technology company renowned for its development, manufacturing, and marketing of smartphones, personal computers, tablets, wearables, and associated accessories. Additionally, the company is significantly investing in original content production for its streaming platform, Apple TV+.
On March 5, Wedbush, an investment advisory firm, reaffirmed an Outperform rating on Apple Inc. (NASDAQ:AAPL) stock, while setting a price target of $250.
Insider Monkey’s database reveals that as of the fourth quarter of 2023, 131 hedge funds maintained stakes in Apple Inc. (NASDAQ:AAPL), collectively valued at $205 billion. This figure marks a slight decrease from the preceding quarter, during which 134 hedge funds held stakes totaling $179 billion.
2. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 166
Alphabet Inc. (NASDAQ:GOOG) stands as a colossal tech conglomerate, renowned primarily for its flagship business, Google. Google’s search engine ranks as the most widely used globally, complemented by a suite of services including email, online storage, maps, ads, and hardware products. Additionally, Google TV provides a platform for streaming TV shows and movies on smart TVs and other devices.
On January 24, Raymond James, an investment advisory firm, upheld an Outperform rating on Alphabet Inc. (NASDAQ:GOOG) stock while raising the price target to $160 from $150.
Among the hedge funds monitored by Insider Monkey, Fisher Asset Management, headquartered in Texas, emerges as a prominent shareholder in Alphabet Inc. (NASDAQ:GOOG), holding 45 million shares valued at over $6.3 billion.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 293
Established in 1994, Amazon.com, Inc. (NASDAQ:AMZN) has built its reputation primarily as a leading online marketplace, facilitating the purchase of diverse products from numerous vendors. Beyond its e-commerce platform, the company provides an array of additional products and services, such as streaming video and music, cloud storage solutions, and home security offerings. Notably, Amazon Prime Video ranks as the second-largest streaming platform globally, boasting a subscriber base exceeding 200 million.
Insider Monkey’s database, which monitors 933 elite hedge funds, reveals a positive sentiment towards Amazon.com, Inc. (NASDAQ:AMZN) in Q4. The number of hedge funds with investments in the stock rose to 293, up from 286 in the previous quarter.
Alger Spectra Fund stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its fourth quarter 2023 investor letter:
“Amazon.com, Inc. (NASDAQ:AMZN) is a well-known online retailer and cloud computing leader. The company’s Amazon Web Services (AWS) business provides utility-scale cloud offerings that facilitate corporate America’s transition to digital systems. During the quarter, shares contributed to performance as Amazon reported strong fiscal third quarter results, where the company beat sales and earnings estimates. Moreover, AWS growth remained steady. contributing to Amazon’s better-than-expected operating income despite concerns around cloud cost optimizations, showing signs of increasing net new cloud workloads. While management noted that customers remain price-conscious and focused on deals, demand remains strong across all segments, leading the company to raise their fiscal fourth quarter revenue and operating income guidance.”
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