The "streaming war" is in full swing after Walt Disney Co. (NYSE: DIS) released its Disney Plus streaming service on Tuesday, Nov. 12. But it's not much of a fight for what's really the best streaming stock to buy right now.
In fact, the more streaming services are added to the mix, the happier this company is. It's gone up 24% in the two weeks since the Disney Plus release.
Netflix Inc. (NASDAQ: NFLX) and Amazon.com Inc. (NASDAQ: AMZN) may have enjoyed a "first to market" advantage for a while. But with the addition of Apple TV Plus, a new Disney service, and several other streaming services underway, that won't last much longer.
Right now, it's a gamble choosing which streaming service will top the others. They're all going for high volumes of high-quality content and releasing their own independent productions. Netflix has its own line of feature films and series. And Apple touted a row of icons such as Steven Spielberg and Oprah Winfrey as partners at the TV Plus unveiling a few months ago.
Lucky for our top streaming stock, it doesn't have to compete with any of that.
This is one of the best streaming stocks right now. It owns nearly 40% of the market that could be worth over $120 billion by 2025.
And the best part is that the more players join, the bigger this market is, and the more money falls into this company's pocket...
[mmpazkzone name="in-story" network="9794" site="307044" id="137008" type="4"]Fortunately, we don't have to choose a winner. In fact, we can profit from the streaming boom no matter who comes out on top.
Roku Inc. (NASDAQ: ROKU) is on track to make early investors a killing in the streaming market.
The company beat earnings expectations by 64% in the Q1 2019. It beat earnings expectations in Q2 and announced it passed the 30 million subscriber threshold.
Then for Q3, it topped 10 billion streaming hours and again beat earnings expectations. However, this time, there were some perceived problems with net losses and hardware. The stock took it on the chin after hours on Nov. 6 to the tune of 15%.
But you cannot keep a good stock down, especially one that continues to top analyst forecasts. The stock started to rebound almost immediately and closed Tuesday up 16.4% from where it was before its earnings were announced. And shares are up more than 400% to date this year.
Roku is laughing all the way to the bank. As more and more people are swept into streaming services, they'll need devices like Roku. You see, we predicted Roku's rise in back in March of last year. And we're predicting its rise again now that Disney is making such a huge splash.
Look what happened when Apple entered the fray back in April. We said this was a huge catalyst for the Roku stock. And less than two months later, it was up 36%.
The more content hits the market, the more money Roku makes. It's that simple.
That's because Roku has carved out a unique niche in the streaming industry. It's what's known as an over-the-top (OTT) media provider. The company doesn't own any entertainment content; it just gives users the ability to stream content from any of the streaming industry's content providers - that includes both Netflix and Disney.
Think of it as the "picks and shovels" theory. This is an old saw from the gold rush of 1849 in California, where hordes of prospective prospectors swarmed the region to make their fortunes. The problem was that only the companies selling the tools they needed - the picks and shovels - made a killing.
Roku expects to break $1 billion in yearly sales for 2019 and then see a 30% increase in 2020.
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