U.S. Markets closed
  • S&P 500

    4,128.80
    +31.63 (+0.77%)
     
  • Dow 30

    33,800.60
    +297.03 (+0.89%)
     
  • Nasdaq

    13,900.19
    +211.39 (+1.54%)
     
  • Russell 2000

    2,243.47
    +20.42 (+0.92%)
     
  • Crude Oil

    59.34
    -0.26 (-0.44%)
     
  • Gold

    1,744.10
    -14.10 (-0.80%)
     
  • Silver

    25.33
    -0.26 (-1.02%)
     
  • EUR/USD

    1.1905
    +0.0031 (+0.2619%)
     
  • 10-Yr Bond

    1.6660
    +0.0340 (+2.08%)
     
  • Vix

    16.69
    -0.47 (-2.74%)
     
  • GBP/USD

    1.3707
    -0.0031 (-0.2248%)
     
  • USD/JPY

    109.6300
    -0.2000 (-0.1821%)
     
  • BTC-USD

    59,634.30
    -1,241.68 (-2.04%)
     
  • CMC Crypto 200

    1,235.89
    +45.20 (+3.80%)
     
  • FTSE 100

    6,915.75
    +30.43 (+0.44%)
     
  • Nikkei 225

    29,768.06
    +37.26 (+0.13%)
     

4 Stocks to Watch Amid Rising Demand for Video Streaming

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
Kaustav Ghosh
·4 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Video streaming has witnessed a rapid rise in popularity over the past few years as consumers keep consuming more content from service providers. It has emerged as one of the most popular forms of entertainment and the trend is likely to continue.

Notably, per a report by Grand View Research, the global video streaming market is estimated to see a CAGR of 21% from 2021 to 2028. The report stated that innovation, such as in blockchain technology and artificial intelligence, to improve video quality is expected to boost the video streaming market. Moreover, the increasing adoption of mobile phones is expected to provide a major boost to the video streaming market due to the growing popularity of social media platforms and other digital mediums for branding and marketing.

Notably, the COVID-19 pandemic has been instrumental in lifting the video streaming market. As people were compelled to practice social distancing and stay confined within homes, they resorted to in-home forms of entertainment. In fact, the report stated that video streaming services witnessed a rise of around 10% in viewership during the lockdown. Meanwhile, the report stated that innovations and technological advancement are expected to meet consumers’ rising expectations for “exceptional video quality, performance, and security.”

Notably, the report further mentioned that North America was the largest contributor to video streaming revenues in 2020, accounting for around 39% share of the total market. In fact, per a survey by Deloitte Insights last year in the United States, 76% of respondents reported that they subscribe to at least one paid streaming video service. This showed a 21% jump from 2018. Moreover, the survey found that consumers who subscribe to a paid video streaming service, held an average of five subscriptions, compared to three before the pandemic. In fact, another survey by customer-retention company Brightback found that 86% of the respondents expect to maintain or even increase their number of subscriptions in 2021, as quoted in a PRWeb article. Such positive developments are sure to aid the video streaming market as consumers are constantly on the look out for more quality content in a market that is becoming increasingly competitive.

4 Stocks to Watch Out For

The global video streaming market seems poised to continue its good run as users look to consume more quality content that the various service providers bring out. This makes it a good time to look at names that can make the most of this trend going forward. Notably, we have selected four such stocks that carry a Zacks Rank #2 (Buy) or 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Apple Inc. AAPL designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. Notably, the company launched its video streaming service called Apple TV+, which allows users to watch movies and original series. Apple currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has risen 10.9% over the past 60 days. The company’s expected earnings growth rate for the current year is 36.3%.

Netflix, Inc. NFLX provides entertainment services. The company provides members the ability to receive streaming content through a host of Internet-connected devices, including TVs, digital video players, television set-top boxes, and mobile devices. It currently has a Zacks Rank #3. The Zacks Consensus Estimate for its current-year earnings has moved 8.7% north over the past 60 days. The company’s expected earnings growth rate for the current year is 60%.

Amazon.com, Inc. AMZN engages in the retail sale of consumer products and subscriptions in North America and internationally. Notably, the company has its video streaming service called Amazon Prime Video, which offers subscribers to watch a host of TV shows and movies. Amazon currently has a Zacks Rank #3. The Zacks Consensus Estimate for its current-year earnings has moved up 10.5% over the past 60 days. The company’s expected earnings growth rate for the current year is 18.2%.

Alphabet Inc. GOOGL provides online advertising services. It operates through Google Services, Google Cloud, and Other Bets segments. Notably, Google’s YouTube allows users to watch audio and video content uploaded by channels. Moreover, users can subscribe to YouTube Premium and watch ad-free YouTube Originals, which feature original series, movies and events from YouTube, among others. It currently has a Zacks Rank #3. The Zacks Consensus Estimate for its current-year earnings has climbed 10.7% over the past 60 days. The company’s expected earnings growth rate for the current year is 17.8%.

The Hottest Tech Mega-Trend of All

Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research