3 Streaming Stocks to Own Now and Never Let Go
The world of streaming is rapidly evolving, with more viewers cutting the cord and shifting towards on-demand content. This is why investors are on the hunt for the best streaming stocks to own in 2024.
The allure of on-demand content, personalized viewing experiences, and global accessibility has propelled streaming platforms forward. Their ability to adapt to changing consumer preferences is advantageous, especially for Wall Street investors. There are few that have stayed ahead of the curve, paving the way for the companies with dominant market share to build on their momentum. As investors seek to capitalize on this new era of content, they may find stability and solace offered by select streaming stocks.
Now, here are the most compelling streaming stocks to own in 2024 and beyond!
Netflix (NFLX)
Netflix (NASDAQ:NFLX), the early pioneer of the digital streaming evolution, has come a long way since its early days of DVD rentals. They continue to maintain dominant market share and boast a large content library of original series and movies that constantly capture their audiences.
A lot has changed for the company over the last 12 months, as major restructuring efforts have increased investors optimism on the future. Apart from cutting costs in the form of layoffs, Netflix has cracked down on password sharing which had eaten into their bottom line. Moreover, their new genius ad plan membership continues to gain traction as consumers look for cheaper options to use their expanding streaming services. In their Q1 FY24 results, revenue increased 15% YOY to $9.37 billion. Operating income skyrocketed 54% YOY to $2.63 billion, largely driven by marketing and product innovation. Management has guided strong revenue growth and profitability in FY24, as well as operating margin expansion in Q2 of 2024.
Spotify (SPOT)
Spotify (NYSE:SPOT) is one of the best streaming stocks to own over the next decade. The company has redefined digital music streaming, and holds more than 30% market share in the music streaming space.
Spotify is currently the world’s largest music streaming platform, boasting more than 600 million MAUs. Apart from dominating the music streaming space, Spotify is becoming the leading platform for the hosting of podcasts. Exclusive deals with popular figures like Joe Rogan and investments in original podcast content continues to attract a growing user base. Apart from the company’s growing leadership in exclusive audio content, their financial metrics continue to trend in the right direction. In Q1 FY24, revenue increased 20% YOY to $3.6 billion. Operating margin expanded by 243 basis points to 27.6%, with operating income at a record high of $168 million. Additionally, premium MAUs and premium subscribers grew 19% and 14% YOY, respectively. With the company continuing to demonstrate their ability to drive profitable growth, Spotify remains one of the best streaming stocks to own in 2024.
Trade Desk (TTD)
Trade Desk (NASDAQ:TTD) plays a pivotal role in the behind the scenes world of digital advertising. This programmatic digital advertising platform enables advertisers to purchase ad slots across various websites, streaming services, and connected devices.
The growth of digital streaming services translates directly into expanded opportunities for Trade Desk. As more viewers migrate to streaming platforms, advertisers rely on platforms like Trade Desk to reach and target their desired audiences. Furthermore, the company has placed an emphasis on empowering its advertisers to achieve better return on their ad spend. In FY23, revenue grew 23% YOY to $1.95 billion, with advertisers spending a record $9.6 billion on the platform. Net earnings increased 235% YOY to $179 million, while generating robust cash flow from operations. Additionally, customer retention remained over 95%, showcasing the continued strength of their industry leading platform. With demand for streaming services on the rise, Trade Desk is set to be a major beneficiary.
On the date of publication, Terel Miles did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
