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The Zacks Analyst Blog Highlights: Apple, Netflix, Amazon and Comcast
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For Immediate Release
Chicago, IL – May 3, 2021 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Apple, Inc. (AAPL - Free Report) , Netflix, Inc. (NFLX - Free Report) , Amazon.com, Inc. (AMZN - Free Report) and Comcast Corporation (CMCSA - Free Report) .
Here are highlights from Friday’s Analyst Blog:
Streaming Services Get a Boost from Pandemic: 4 Stocks to Watch
Streaming service providers have been one of the biggest beneficiaries of the pandemic as they have gained millions of subscribers. This has directly resulted in revenue growth for the companies. Streaming services were already giving stiff competition to pay-TV, and the pandemic has been helping the former even further.
According to a report by market-research firm Strategy Analytics, pay-TV services are going to take a further hit in the coming days as new players in the streaming market have left people with more options. New players have helped in adding to the user base of almost all major service providers, with higher average household spending on streaming video services growing.
Boom Time for Streaming Services
According to a report from Strategy Analytics, although people are still spending more on pay-TV, the margin with streaming services is fast narrowing. In 2020, Americans spent $90.7 billion on traditional pay-TV, down 8% year over year. At the same time, people spent $39.5 billion on streaming, which is a 34% jump year over year.
Given this pace, in 2024, pay-TV will only account for just $74.47 billion, while streaming will take over and account for $76.3 billion. The report further says that by 2026, pay-TV will contribute to only 40% of the total video budget.
At the same time, subscribers for video streaming have been on the rise, which has been further fueled by the pandemic, as more people are staying at home and watching videos on demand. The report from Strategy Analytics showed that subscribers for streaming services first surpassed pay-TV in 2019, totaling 92.64 million households compared to 81.63 million households for pay-TV.
Streaming Services Poised to Grow
Pay-TV has been taking a hit for quite some time now. Streaming services got a boost during the pandemic because it coincided with the launch of a number of streaming services. Several video streaming services were launched at the end of 2019, followed by a couple more in 2020. Most of them have successfully added millions of subscribers within months.
Prior to 2020, there were only three major players, which have doubled in just over a year. Naturally, this has also been boosting competition.
Moreover, many media companies that had postponed their film releases in movie theatres due to the pandemic also have started releasing them on OTT platforms, which have further been helping the streaming industry.
Stocks in Focus
Streaming services are one of the few sectors that have benefited from the pandemic, which has kept millions at home with nothing to do but stream. This thus makes an opportune time to invest in video streaming stocks.
Apple launched its streaming services in late 2019 and has gained immense popularity since then. The company reportedly has more than 30 million TV subscribers.
The company’s expected earnings growth rate for the current year is 37.8%. The Zacks Consensus Estimate for current-year earnings has improved 1.1% over the past 60 days. Apple has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Netflix is considered a pioneer in the streaming space. It has been spending aggressively on building its original show portfolio. The company added more than 3.98 million paid subscribers in the first quarter of 2021 for a total of 207.64 million globally.
The company’s expected earnings growth rate for the current year is 70.6%. The Zacks Consensus Estimate for current-year earnings has improved 5.7% over the past 60 days. The company currently has a Zacks Rank #3 (Hold).
Amazon.com, besides being an e-commerce giant, offers several other services. Amazon Prime, a membership program, provides access to streaming of movies and TV episodes among other services, and is one of the market leaders in the streaming space.
The company’s expected earnings growth rate for the current year is 16.6%. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the past 60 days. Amazon carries a Zacks Rank #3.
Comcast Corporation’s Peacock video streaming service boasts more than 33 million paid subscribers in less than a year of its launch. Peacock has three tiers of service: Free, Premium and Premium Plus. Peacock also offers a lineup of around 25 curated digital linear channels, featuring long-form and digital-originated programming content from NBCUniversal's broadcast and cable properties as well as third-party content providers.
The company’s expected earnings growth rate for the current year is 8.4%. Comcast shares have gained 8.8% in the past three months. It carries a Zacks Rank #3.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: Apple, Netflix, Amazon and Comcast
For Immediate Release
Chicago, IL – May 3, 2021 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Apple, Inc. (AAPL - Free Report) , Netflix, Inc. (NFLX - Free Report) , Amazon.com, Inc. (AMZN - Free Report) and Comcast Corporation (CMCSA - Free Report) .
Here are highlights from Friday’s Analyst Blog:
Streaming Services Get a Boost from Pandemic: 4 Stocks to Watch
Streaming service providers have been one of the biggest beneficiaries of the pandemic as they have gained millions of subscribers. This has directly resulted in revenue growth for the companies. Streaming services were already giving stiff competition to pay-TV, and the pandemic has been helping the former even further.
According to a report by market-research firm Strategy Analytics, pay-TV services are going to take a further hit in the coming days as new players in the streaming market have left people with more options. New players have helped in adding to the user base of almost all major service providers, with higher average household spending on streaming video services growing.
Boom Time for Streaming Services
According to a report from Strategy Analytics, although people are still spending more on pay-TV, the margin with streaming services is fast narrowing. In 2020, Americans spent $90.7 billion on traditional pay-TV, down 8% year over year. At the same time, people spent $39.5 billion on streaming, which is a 34% jump year over year.
Given this pace, in 2024, pay-TV will only account for just $74.47 billion, while streaming will take over and account for $76.3 billion. The report further says that by 2026, pay-TV will contribute to only 40% of the total video budget.
At the same time, subscribers for video streaming have been on the rise, which has been further fueled by the pandemic, as more people are staying at home and watching videos on demand. The report from Strategy Analytics showed that subscribers for streaming services first surpassed pay-TV in 2019, totaling 92.64 million households compared to 81.63 million households for pay-TV.
Streaming Services Poised to Grow
Pay-TV has been taking a hit for quite some time now. Streaming services got a boost during the pandemic because it coincided with the launch of a number of streaming services. Several video streaming services were launched at the end of 2019, followed by a couple more in 2020. Most of them have successfully added millions of subscribers within months.
Prior to 2020, there were only three major players, which have doubled in just over a year. Naturally, this has also been boosting competition.
Moreover, many media companies that had postponed their film releases in movie theatres due to the pandemic also have started releasing them on OTT platforms, which have further been helping the streaming industry.
Stocks in Focus
Streaming services are one of the few sectors that have benefited from the pandemic, which has kept millions at home with nothing to do but stream. This thus makes an opportune time to invest in video streaming stocks.
Apple launched its streaming services in late 2019 and has gained immense popularity since then. The company reportedly has more than 30 million TV subscribers.
The company’s expected earnings growth rate for the current year is 37.8%. The Zacks Consensus Estimate for current-year earnings has improved 1.1% over the past 60 days. Apple has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Netflix is considered a pioneer in the streaming space. It has been spending aggressively on building its original show portfolio. The company added more than 3.98 million paid subscribers in the first quarter of 2021 for a total of 207.64 million globally.
The company’s expected earnings growth rate for the current year is 70.6%. The Zacks Consensus Estimate for current-year earnings has improved 5.7% over the past 60 days. The company currently has a Zacks Rank #3 (Hold).
Amazon.com, besides being an e-commerce giant, offers several other services. Amazon Prime, a membership program, provides access to streaming of movies and TV episodes among other services, and is one of the market leaders in the streaming space.
The company’s expected earnings growth rate for the current year is 16.6%. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the past 60 days. Amazon carries a Zacks Rank #3.
Comcast Corporation’s Peacock video streaming service boasts more than 33 million paid subscribers in less than a year of its launch. Peacock has three tiers of service: Free, Premium and Premium Plus. Peacock also offers a lineup of around 25 curated digital linear channels, featuring long-form and digital-originated programming content from NBCUniversal's broadcast and cable properties as well as third-party content providers.
The company’s expected earnings growth rate for the current year is 8.4%. Comcast shares have gained 8.8% in the past three months. It carries a Zacks Rank #3.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.