The 3 Best Streaming Stocks to Buy in August 2024

Stocks to buy

Best streaming stocks will continue to attract attention for several years, considering the secular growth in the streaming business. This is also thanks to cord-cutting and a decline in appointment viewing.

Additionally, streaming services were popular throughout the epidemic. American streaming subscriptions and time spent grew 75% in 2020. Premium streaming services enrolled 76% of Americans in 2020, up from 55% in 2018. User subscriptions rose from three to five. So, filmgoing is evolving, with industry veterans like Ben Affleck worried about mid-budget films.

At the same time, streaming is not rosy, so you need to exercise caution when selecting stocks from the space. Household streaming subscription expenditures are down 25% to $73 monthly from $90 in 2021. Streaming companies are also decreasing their content spending, with three major providers lowering their content budget by $7.8 billion.

The streaming industry is expected to grow 8% from 2024 to 2027, reaching $137.7 billion. However, the best streaming stocks have the content and resources to capitalize. The three best streaming stocks we’ll explore are buy-rated and come with double-digit upsides, giving you some nice cushion amid consolidation and streamlining in the industry.

Walt Disney (DIS)

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Walt Disney (NYSE:DIS) cemented its name among the best streaming stocks after reporting stellar third-quarter results for fiscal 2024, reporting a profit for the first time.

From a $512 million loss in the same quarter last year, the company’s direct-to-consumer streaming services — Disney+, Hulu and ESPN+ — generated $47 million in profit for Q3 2024.

Revenue increases, deliberate pricing increases and cost control explain this encouraging change. Up 15% from the year before, Disney’s streaming division recorded $6.4 billion in income overall.

Disney is now planning price hikes to boost profits and meet demand. From Oct. 17, the ad-supported Disney+ tier will cost $9.99, while the ad-free version will cost $15.99. Similar price hikes are planned for Hulu and ESPN+.

Apart from its streaming success, Walt Disney beat Wall Street forecasts with its fiscal overall 2024 third-quarter profits. Entertainment, which includes cinema, television and streaming, earned $1.2 billion. ESPN+ is thriving thanks in large part to NBA and WNBA broadcast rights boosting sports streaming.

Disney’s streaming profits set it up for a great year, complementing its 50% rise in its semi-annual dividend to 45 cents per share. Disney is also planning a $3 billion share buyback. The average DIS recommendation is “Strong Buy,” with a 49% upside.

Amazon (AMZN)

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Spending $17.4 billion on digital video and music in 2023, Amazon (NASDAQ:AMZN) is pouring substantial capital into its Prime Video division.

Amazon’s content investment is paying off. Prime Video, with a 22% market share, has become one of the leading streaming services, making Amazon one of the greatest streaming stocks.

With over 200 million subscribers globally, Amazon Prime boasts extremely strong subscription growth. Many of these Prime Video viewers assist in explaining the program’s popularity and income growth.

Regarding present statistics, Amazon said that net sales increased by 10% in Q2 2024 to reach $148 billion. This growth captures the success of its many business areas, including streaming media.

New titles are part of Amazon’s streaming business’s attraction. Among the noteworthy additions in August are “Batman: Caped Crusader,” “The Lord of the Rings: The Rings of Power” and movies like “Pulp Fiction” and “Scarface.”

Furthermore, Amazon moved its worldwide emphasis to European originals earlier this year, lowering spending on African and Middle Eastern content due to its lean business strategy. Amazon wants its MGM Studios and Prime Video units to focus on profits. AMZN’s potential upside is 37%.

Warner Bros Discovery (WBD)

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Warner Bros Discovery (NASDAQ:WBD) may be the most dangerous regarding the best streaming stocks. With an average 12-month price objective of $12.50 and a 62% upside potential, WBD is an appealing investment given its large content collection.

From HBO, Warner Bros., DC Universe, HGTV, Food Network and TLC, Max, a Discovery Plus-HBO Max streaming subscription provides 35,000 hours of material. Tiered membership plans include 4K UHD content on the Ultimate Ad-Free tier and ad-supported and ad-free watching choices.

Additionally, WBD and Disney are working on a new streaming package that includes Disney+, Hulu and Max. With some of the most well-known entertainment brands, this package provides a wide spectrum of content to raise value and increase subscriber retention and expansion.

WBD also launched “One WBD,” a solution that spans streaming, theater and network platforms to boost client engagement throughout the marketing cycle.

WBD’s $9.99 billion second-quarter 2024 net loss was caused mainly by a $9.1 billion write-down of its TV assets, highlighting the problems with conventional broadcasting. The results will force WBD to focus more on streaming, making shares already on discount more tempting after declining 33% this year more enticing.

On the date of publication, Faizan Farooque 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.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.

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