3 Streaming Stocks That Could Rally More Than 80% in 2022, According to Wall Street

The streaming industry has benefited from the remote lifestyle, with the increased adoption of internet-enabled entertainment platforms and surging demand. Technology advancements such as three-dimensional video platforms, virtual reality, and augmented reality have provided video streaming services with great growth prospects. Based on…

research by Strategy Analytics, U.S. viewers are expected to spend more time on digital streaming platforms than traditional TV. And spending on subscription streaming services (including VOD and virtual MVPDs) might reach $76.3 billion in 2024, surpassing traditional pay-tv.

According to a report by The Business Research Company, the global content streaming market size is projected to reach $227.32 billion in 2026, growing at a 16.6% CAGR. The increased number of devices that support digital media, internet connectivity, and advanced technologies are the main drivers of the market.

Given these factors, Wall Street analysts expect streaming stocks Roku, Inc. (ROKU – Get Rating), fuboTV Inc. (FUBO – Get Rating), and CuriosityStream Inc. (CURI – Get Rating) to rally in the coming months.

Roku, Inc. (ROKU – Get Rating)

ROKU in San Jose, Calif., operates a TV streaming platform together with its subsidiaries. The company operates through two segments: Platform; and Player. ROKU offers a platform to discover and access various movies and TV shows, digital and video advertising, subscription, and billing services, and sells and licenses smart TVs and streaming players.

On Feb. 8, 2022, The Old House Makers Channel launched a new linear channel exclusively on ROKU, which features leading makers and craftspeople in the industry displaying their skills. With the launch, ROKU is expected to increase its customer reach by gaining a new streaming audience and boosting revenues.

On Feb. 2, 2022, ROKU launched an advertising business in Mexico. As a part of the launch, the company partnered with Entravision, a leading digital marketing and media company, to allow brands and content providers to reach more consumers by advertising on the Roku streaming platform. The company might increase its client base and boost its revenue streams and profitability through advertisements.

In its fiscal third quarter, ended Sept. 30, 2021, ROKU’s total net revenue increased 50.5% year-over-year to $679.95 million. ROKU’s total gross margin grew 69.4% year-over-year to $363.92 million. The company’s income before taxes increased 453.3% year-over-year to $68.60 million. ROKU’s net income grew 432.4% year-over-year to $68.94 million. Its  net income per share rose 433.3% year-over-year to $0.48.

The $896.75 million consensus revenue estimate for its fourth quarter, ended Dec.31, 2021, represents 38% year-over-year growth.

Over the past five days, the stock has increased 7.3% in price to close yesterday’s trading session at $155.86.

Of the 15 Wall Street analysts that rated ROKU, 12 rated it Buy, while three rated it Sell. The 12-month median price target of $284.00 indicates an 82.2% potential upside. The price targets range from a low of $136.00 to a high of $400.00.

fuboTV Inc. (FUBO – Get Rating)

Headquartered in New York, FUBO is a live TV streaming platform in the U.S. and Europe. It streams live sports events, news, and entertainment content. The company allows customers to access content through different streaming devices, including SmartTVs, computers, mobile phones, and tablets.

On Feb. 08, 2022, FUBO’s Fubo Gaming partnered with…

 

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