Top Streaming Service Stocks: Choosing the Right Picks for Your Portfolio

Over the last decade, how people watch TV shows, movies, and videos has transformed significantly. Streaming services like Netflix and YouTube have become the go-to choices for many, surpassing traditional media. This change opens up investment opportunities for those who can pinpoint which streaming platforms can draw in viewers and make money.

Top streaming stocks

1. Netflix (NFLX)

2. Alphabet (GOOG and GOOGL)

3. Amazon (AMZN)

4. Disney (DIS)

5. Apple (AAPL)

6. Comcast (CMCSA)

7. Warner Bros. Discovery (WBD)

8. Paramount Global (PARA)

Market value as of May 10, 2024.

1. Netflix (NFLX)

Netflix has become a big name in streaming, changing how we watch shows and movies. With around 270 million subscribers worldwide, it's one of the few streaming services that makes a lot of money. Experts like Morningstar analyst Matthew Dolgin say Netflix is the best in global streaming and will likely stay that way for years. 

Netflix's success comes from its huge audience and the many shows and movies it offers. They keep growing and making new stuff, which keeps people interested. So, if you're thinking about investing, Netflix might be a good bet because it's expected to keep leading the streaming world for a long time. 

Market value: $261 billion

Annual revenue: $33.7 billion 

2. Alphabet (GOOG and GOOGL)

You might not think of Google's parent company Alphabet as a big player in streaming, but YouTube, which they own, is huge. People around the world watch over 1 billion hours of YouTube on their TVs every day. They also have a service called YouTubeTV, kind of like regular cable but streamed online, and it has over 8 million subscribers.

Market value: $2.1 trillion

Annual revenue: $307.4 billion

3. Amazon (AMZN)

Amazon, known for its online shopping, also has a streaming service called Amazon Prime Video. It's become a big deal, especially for people who subscribe to Amazon Prime. The CEO, Andy Jassy, told shareholders that they believe Prime Video can be a big and profitable business by itself.

Lately, Amazon has been adding ads to Prime Video, which has more than 200 million viewers each month. They've also started showing live sports like Thursday Night Football NFL games. This shows that Amazon is serious about growing its streaming business and making it even more attractive for Prime subscribers.

Market value: $1.96 trillion

Annual revenue: $574.8 billion

 4. Disney (DIS)

Disney is changing the way it does business by focusing more on streaming. Their main service, Disney+, now has about 118 million subscribers who pay around $7 to $8 per month. Disney also owns other popular channels like ESPN for sports, ABC for news and shows, and the Disney channel for kids' entertainment.

Even though Disney has these great assets, it's facing some challenges as the industry shifts. Morningstar's Dolgin says that while Disney has advantages, the new way of doing things might not be as profitable as before. Still, Disney is adapting and finding ways to stay strong in the ever-changing media world.

Market value: $192.1 billion

Annual revenue: $88.9 billion

5. Apple (AAPL)

While Apple is famous for creating iPhones, iPads, and Mac computers, it's also made a big streaming service called Apple TV+. They don't share a lot of details about it, but it's believed that around 25 million people pay for it, and more might get it through special deals.

Popular shows like Ted Lasso have attracted viewers to Apple TV+, and they've even started showing live sports like Major League Baseball and Major League Soccer. So, even though Apple is mainly known for its devices, it's also making a name for itself in the streaming world.

Market value: $2.8 trillion

Annual revenue: $383.3 billion

6. Comcast (CMCSA)

Comcast, a well-known media company, is shifting towards streaming with its service called Peacock. It owns big brands like NBC, Telemundo, Universal, and Sky. By the end of 2023, Peacock had around 31 million people paying for it, but it also faced a loss of about $2.7 billion.

To attract more subscribers, Comcast is focusing on adding live sports to Peacock. They've already streamed an NFL playoff game in early 2024, and they also show college basketball and football games. This move shows that Comcast is serious about competing in the streaming world by offering popular sports content.

Market value: $151 billion

Annual revenue: $121.6 billion

7. Warner Bros. Discovery (WBD)

Warner Bros. Discovery is a big company that owns a bunch of popular media brands like HBO, CNN, Discovery Channel, HGTV, and more. They also have famous franchises like Harry Potter, Game of Thrones, and The Lord of the Rings.

At the end of 2023, Warner Bros. Discovery said they had nearly 98 million subscribers for their various services, which include HBO Max, legacy HBO, and Discovery+. This company came together in 2022 when Discovery merged with AT&T's media business, showing that they're a major player in the entertainment industry.

Market value: $19 billion

Annual revenue: $41.3 billion

8. Paramount Global (PARA)

Paramount Global owns lots of popular media channels like CBS, Nickelodeon, MTV, and Comedy Central. Their streaming service, Paramount+, had over 71 million subscribers by March 2024.

Right now, Paramount is thinking about merging with another company, but it's not certain if it will happen. They've been talking with Skydance Media, and they also got an offer from Sony and a private equity firm called Apollo, who want to buy Paramount with cash. These talks show that Paramount is exploring options to grow and strengthen its business.

Market cap: $9.0 billion

Annual revenue: $29.7 billion

Netflix started offering streaming services in 2007 and has become the biggest player in the industry. They have around 270 million subscribers worldwide as of March 2024 and made a profit of $5.4 billion in 2023.

Seeing Netflix's success, other companies jumped into streaming, but most haven't done as well. Big names like Disney and Comcast tried with services like Disney+, but they mostly lost money. Tech giants like Apple and Amazon also joined in, with varying levels of success.

Recently, Disney said Disney+ gained over 6 million new subscribers, and its losses in streaming got smaller. But the stock still dropped about 10% because they don't expect more growth this quarter and costs will hurt profits. Paramount Global, struggling to make money from streaming, is considering takeover offers. Sony and a private equity firm called Apollo offered $26 billion in cash in early May.

Editorial Disclaimer: We encourage all investors to conduct their own thorough research into investment strategies before making any decisions. It's important to remember that past performance of investment products is not a guarantee of future price increases.