The entertainment industry is a very integral part of the world's economy; even though it can appear to be a secondary need of satisfaction, it is still very much in demand amongst most countries in the world.
The entertainment industry encompasses various products and services, including but not limited to television, pictures, gaming, online movies and many more.
Asides from getting invites to various parties and programs hosted by different entertainment brands and businesses, investing in streaming entertainment stocks are of multiple benefits, such as helping with stock portfolio diversification, and the potential for long term returns. Buying stocks in this industry gives investors access to the inner workings of some of the industry’s biggest competitors, like NFLX, DIS, ROKU and many others.
This article will give investors an in-depth study of the eight best entertainment stocks to invest in, financial indicators to consider when getting their stock, and the future outlook and growth potential. It gets interesting because we will show you how to trade entertainment stocks CFD with VSTAR, a leading online trading platform.
Netflix Inc. (NASDAQ: NFLX) - The King of Streaming...For Now
Netflix Inc. (NASDAQ: NXFL) is an American-owned media company. Recognized as the first streaming company to become a member of the Motion Pictures Association, they are the parent company of the biggest online streaming platform in the world, Netflix. Netflix is a subscription-based streaming platform with over 200 million subscribers. Netflix Inc got founded in 1997 by Reed Hastings and Marc Rodolph in California. Netflix Inc. initially sold Dvds by mail until 2007, when they introduced streaming media and video on demand.
The company launched with 30 employees. In 2003, they posted their first profit of $6.5 million on revenues of $272 million by 2004, their profit increased to $49 million on $500 million in revenues. In 2022, their net income was $4.5 billion with 12,800 employees. As of December 2022, Netflix Inc. had a revenue of $31.6 billion and assets worth $48.6 billion. According to Analytics predictions, by the end of 2023, NFLX stock will be about $310 and could be about $1169 by 2029.
Netflix Inc. is on the NASDAQ exchange as NFLX in the American stock exchange in New York City. As of June 21st, 2023, NFLX is worth $434.70, which is 0.63 % higher than it was the previous trading day. As of June 3rd, Netflix Inc. shareholders voted against the exaggerated pay for the top media executives.
Some key financial indicators to note when analyzing stocks are liquidity ratios, leverage ratios, efficiency, profitability ratio and market value ratios. Netflix Inc. has a liquidity ratio of 1.26 as of March 2023, its leverage ratio for December 2018 to 2022 averaged at 3.6x, its quarterly profitability ratio as of March 2023 was 15.99 %, and its current price-to-earnings ratio is 45.807.
In comparison to other industry peers, NFLX is part of the top entertainment shares with a score point of 53, which is way higher than the industry average point of 24. NFLX should grow in earnings by 19.1 % and revenue by 9.6 % per annum.
The Walt Disney Company (NYSE: DIS) - Magic or Fantasy?
The Walt Disney Company is an American mass media and entertainment corporation. Founded in 1923 by brothers Walt and Roy Disney, it was initially known as the Disney Brothers Studio. They immediately began to make a mark in the industry with the prevalent Mickey Mouse character, now the company’s mascot.
In 1991, Walt made a revenue of $6,111 million and an operating income of $1,094 million. Over the years, the revenue improved, and by 2022 the gross revenue remained at $83.7 billion. As of October 2022, they had 220,000 employees and total assets worth $203.631 billion. Analysts predict that DIS stock should be worth $98.34 at the end of 2023, and by 2034, they should be worth about $331.82.
Disney trades on the New York Stock Exchange (NYSE) with the ticker symbol DIS. As of June 21st, 2023, DIS is worth $89.75, 1.72% lower than the previous trading day. The company, existing for almost a century now, plans to debut 28 newly restored animations before their 100th-year anniversary in October 2023. Their earnings, which have been decreasing by a few percent annually, are likely to come back stronger soon.
Disney's liquidity ratio as of March 2023 was 1.01, its leverage ratio for fiscal years from 2018 to 2022 averaged at 2.2x, its quarterly profitability ratio as of March 2023 was 5.83%, and its current price-to-earnings ratio is 40.4208.
Compared to other industry peers, there has been a decrease in DIS stock, but it is gradually recovering. DIS earnings and revenue should grow by 27.7% and 5.2% per annum.
Roku Inc.（NASDAQ: ROKU) - The Swiss Army Knife of Streaming?
Roku Inc. is an American company selling various digital media materials for streaming. They also run an ad-supported video-on-demand service. Their base is in California, and Roku got founded in the year 2002 by Anthony Wood.
In 2017, they went public after launching their self-serving advertisement products. Their valuation was $1.3 billion, and since then, their stock gained 212 %. Their revenue, as of 2022, was $3.13 billion, and they had total assets worth $4.14 billion. They have 3,600 employees.
Prediction from analysts is that they should grow their earnings and revenues by 46.5% and 12% yearly, respectively. ROKU stock should be worth $120.42 by 2024 and $2,914.43 by 2030.
Roku Inc. is on the NASDAQ exchange as ROKU in the American stock exchange in New York City. As of June 21st, 2023, ROKU is worth $67.96 which is 3.86 % lower than the previous trading day. Roku, as of June 2023, has a liquidity ratio of 3.2, its leverage ratio in the first quarter of 2023 is 0.55, and the price-to-sales ratio as of 2022 was 1.79.
In comparison with other industry peers, Roku has a score point of 38 which is higher than the industry average point of 24.
Spotify Technology (NYSE: SPOT) - The Soundtrack for Speculation?
Spotify is a Swedish company that deals in audio streaming and media services. It is one of the largest music streaming platforms, with about 317 million unpaid users and 210 million paying subscribers. Founded in 2006 by Daniel Ek and Martin Lorentzon, Spotify has 15 offices with 9,646 employees. Spotify launched in 2008 in a few countries, and over the years, has been in use in Europe, Africa, America, Asia, and Oceania.
In 2020, Spotify had a value of $50 billion. As of 2022, they had a revenue of €11.7 billion, with assets worth about €7.6 billion. Analysts predict that their revenue will grow by 70.9 % in their earnings and 11.4 % in their revenue per annum. They also predict that at the end of 2023, SPOT stock will be worth $144.97, and by 2030, it will be worth $271.20.
Spotify gets traded on the New York Stock Exchange (NYSE) with the ticker symbol SPOT. As of June 21st, 2023, SPOT stock is worth $156.82, 1.98 % lower than the previous day.
Spotify, as of March 2023, had a liquidity ratio of 1.24, they had a debt-to-equity ratio of 0.4936, and as of June 2023, they had a price-to-sales ratio of 2.44.
Compared to other of its industry peers, Spotify stands out with its mobile machine learning and intelligent data-sifting technology.
Manchester United Plc (NYSE: MANU) - Trophy or Own Goal?
Manchester United football club, popularly known as Man United, is a professional football club in Old Trafford, England. Manchester United PLC, with Chairmen Joel and Avram Glazer, owns this club founded in 1878. With a record 20 league titles, people nickname the football club The Red Devils. Initially a team that played against department teams and railway companies, Man United has grown to be one of the biggest teams in the history of international football.
In 2005, the club had a value of about £800 million and had then acquired a lot of debts which made a number of the fans protest. In 2023, Manchester United is now valued at about £4.8 billion. Analytics from Man U’s 12-month price forecast has shown a median target of 25.37 and a high and low estimate of 25.88 and 24.85, respectively.
Manchester United Plc trades on the New York Stock Exchange (NYSE) with the ticker symbol MANU. As of June 21st, 2023, MANU stock was worth $22.50, which is 4.86% less than it was the previous trading day.
The liquidity ratio of Manchester United as of 2022 is 0.40; as of December 2022, their debt-to-equity ratio was 4.88, and their price-to-sale ratio, as of June 2023, was 4.266.
As of June 17th, 2023, Manchester United is in 3rd position on the English Premier League log with 75 points. They are being led by Manchester City (89 points) and Arsenal (84 points).
Tencent Music Entertainment (NYSE: TME) - Largest Music Streamer in China
Tencent Music Entertainment Group is a music streaming services developer for the china market. With over 800 million active users and 120 million paying subscribers, they hold about 56% market share of streaming services in China. Tencent Music Entertainment Group was founded in 2016. They had 5,965 employees as of December 2021 and in 2022, they had a revenue of $4.21 billion which was a 13.04 % decline from their 2021 revenue. Their headquarters is in Guangdong, China.
Analytics from Tencent Music Entertainment’s 12-month price forecast has shown that they have a median target of 10.35 and a high and low estimate of 11.58 and 6.02, respectively. TME stock will be worth about $479.43 by 2030.
Tencent Music Entertainment trades on the New York Stock Exchange (NYSE) with the ticker symbol TME. As of June 21st, 2023, TME stock was worth $7.54, which is 6.10 % less than the previous trading day.
Tencent Music Entertainment, as of March 2023, had a liquidity ratio of 2.35 and a debt-to-equity ratio was 0.10. Their price-to-book ratio, as of June 2023, was 1.80.
Compared with industry peers, tencent music has a very good stand, they are not the biggest of the companies or with the most revenue and assets neither are they also down the ladder.
Iqiyi Inc (NASDAQ: IQ)
Iqiyi Inc. is an online video service provider in China. Founded by Gong Yu, the company formerly called Qiyi got launched in 2010. Currently one of the largest entertainment video service providers in China with 101.4 million paid subscribers, Iqiyi’s headquarters are in Beijing and Shanghai, China.
Their revenue, as of March 2023, is $4.278 billion. Analytics from Iquiyi’s 12-month price forecast has shown a median target of 8.24 and a high and low estimate of 11.78 and 2.78, respectively. There are predictions that Iqiyi stock will keep on falling and by 2030 will be worth $3.92.
Iqiyi Inc. is on the NASDAQ exchange as IQ in the American stock exchange in New York City. As of June 21st, 2023, IQ is worth $5.32, 3.26 % less than it was the previous day.
Iqiyi’s liquidity ratio between 2019 and 2023 was 0.73, and their debt-to-equity ratio was 1.10. Their price-to-sale ratio is 1.203 and is estimated to be 1.60 by the end of 2023.
In comparison to industry peers, Iqiyi should grow its earnings by 59.7 % and its revenue by 7.7 % annually.
Warner Music Group Corp (NASDAQ: WMG)
Warner music group is an American multinational entertainment and record label in America. With headquarters in New York City, it got founded in 1958 by Warner Bros. It is one of the three big recording companies.
The company owns some of the largest and most successful labels in the world and is currently valued at $12.44 billion. In 2022, their net income was $0.555 billion, with 5,900 employees. As of December 2022, Warner music group had a revenue of $5.9 billion and assets worth $7.8 billion. According to Analytics predictions, by the end of 2023, WMH will be about $21.28 and could drop to about $18.67 by 2030.
Warner music group is on the NASDAQ exchange as WMG in the American stock exchange in New York City. As of June 21st, 2023, WMG stock is worth $26.51, which is 2.39 % lower than it was the previous trading day.
Warner music has a liquidity ratio of 0.69 as of March 2023, its debt-to-equity ratio for March 31st, 2023, was 14.98, and its price to book ratio as of June 14th, 2023, was 50.36.
In comparison with industry peers, Warner music is moving with the top dogs in the industry. Universal music group and Sony music entertainment are the only two companies larger than them.
Trade Entertainment Stocks CFD at VSTAR
Trading in the entertainment industry stocks can be a very good decision when taking advantage of the market trend and studying the current market analysts. In trading with CFD, there are three ways to follow:
● Holding the share,
● Buying an option,
● Trading a CFD.
Each of these ways has its merits and demerits, but with CFD trading, you get to enjoy and experience unique benefits like low costs and high flexibility. You can trade with a small deposit, profit from any price direction, and avoid commissions, fees, and premiums. You do not need to own the actual shares with CFDs.
It would interest you that VSTAR allows you to trade CFDs on various markets, such as currencies, stocks, indices, and commodities. You can also enjoy low fees with fast execution and secure trading with VSTAR. Its user-friendly app helps you navigate your way easily. On VSTAR, you can start with small deposits and practice with a demo account.
To trade any of these stocks CFDs with VSTAR, follow these simple steps:
● Visit www.vstar.com or download the VSTAR app on your device
● Register for an account by providing your details
● Verify your identity by uploading your proof of identity and address
● Deposit funds into your account by choosing your preferred payment method and amount.
● Trade by selecting your stock from the list of available instruments, entering your trade size, direction (buy or sell), stop loss, take profit, etc., and click on "Open Trade".
Conclusion
This article gives you a detailed dive into the top 8 entertainment stocks. It discusses their overview, financial and stock performance, and current market trends analyst predictions and compares them to their industry peers.
There are a lot of investment opportunities in the entertainment stock industry, but one has to be careful and consistently monitor market trends. You should start investing in entertainment stocks today and make use of the opportunities the company will give you now.
