Many investors are wondering what the price of Hulu stock is. Because Hulu is still a private company, it is not available on any public stock exchanges just yet.
Today, we'll show you why Hulu is a sought-after investment and how you can start profiting from it right now. Plus, we'll show you an even better stock pick from the online streaming industry...
Fortune says that Hulu explored an initial public offering in 2010, but Wall Street pushed back at the idea. At the time, the company streamed its content for free and had no monetization plan in place. Hulu ended up abandoning the idea.
The streaming industry has completely changed since then...
Whether you can invest in Hulu or not, it makes sense to look at video streaming as a source of profits. After all, this is now a booming market.
Statista reports that in 2018, 85% of Internet users in the United States will watch videos online. The number of people who watch digital videos in this country is expected to reach 232 million by 2020.
And according to Pew Research, six in 10 adults in the United States are turning to streaming video services for their television needs. 24% of Americans are forgoing cable providers, and many term themselves "cord cutters," meaning they have left cable behind in favor of video-streaming services.
In an effort to take advantage of these immensely profitable trends, we've identified a little-known investment strategy that allows investors to invest in the top public streaming companies.
Unlike mainstream streaming companies, like Netflix Inc. (Nasdaq: NFLX) and Amazon.com Inc. (Nasdaq: AMZN), this investment opportunity is trading for under $100, which means you can control more shares for less money.
Before we get to this profit opportunity, here's a look at the ways you can indirectly invest in Hulu stock...
Can You Indirectly Invest in Hulu?
Three companies each own 30% of Hulu - Walt Disney Co. (NYSE: DIS), Comcast Corp. (Nasdaq: CMCSA), and Twenty-First Century Fox Inc. (Nasdaq: FOXA).
As of August 2016, the final 10% is owned by Time Warner Inc. (NYSE: TWX).
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You can own a small piece of Hulu by purchasing shares in any of these media giants. However, this may not be the best profit play.
While these four companies dominate the media landscape and are projecting modest gains over the next year, they won't get close to generating the returns on deck with our profit opportunity.
In addition to playing off the strongest Internet-streaming companies, our pick incorporates smaller tech companies looking at tremendous growth - and profits.
Here's our pick...
The Best Way to Invest in Video-Streaming Stocks
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If you want to profit from growth in streaming video companies like Hulu without breaking the bank, our top recommended investment is First Trust DJ Internet Index Fund (NYSE Arca: FDN).
This is an exchange-traded fund (ETF) that only holds companies that generate 50% of their revenue from Internet services.
In addition, eligible holdings must also have:
- A minimum market capitalization of $100 million
- If not currently in the ETF, a minimum, average three-month closing price of $10
- Sufficient trading activity to satisfy liquidity tests
The ETF's managers review its composition quarterly and make adjustments to holdings in March, June, September, and December.
FDN's chief benefit is its diversification. The variety of Internet-based stocks the fund holds will lower investment risk while providing a cheaper way to invest in some of the industry's more expensive stocks.
In fact, two of the top companies the ETF holds are Netflix (5.86%) and Amazon (9.75%).
Other top companies include Facebook Inc. (Nasdaq: FB), Alphabet Inc. (Nasdaq: GOOG), and Salesforce.com Inc. (NYSE: CRM).
Shares of FDN are now trading at $130.86, and the fund is up 17.81% year to date.
However, with the immense growth potential in the streaming market, this ETF has nowhere to go but up.
While the returns from the streaming industry are great, there's another profit opportunity we're keeping a close eye on...
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