3 Streaming Stocks Battling for Your Screen Time

Streaming has completely changed how we consume entertainment, becoming a staple in almost every household. On average, Americans spend 21 hours a week watching digital content, and nearly everyone subscribes to at least one streaming service. Even with rising prices, 26% of people don’t mind paying for premium content, shelling out $46 per month on streaming services.

Given the growing appetite for binge-worthy shows and blockbuster movies, the battle for your screen time is fiercer than ever. Companies like Amazon.com, Inc. (AMZN), Netflix, Inc. (NFLX), and The Walt Disney Company (DIS) are in a constant race to hook viewers with fresh content, new features, and competitive pricing. Whether it’s exclusive series, live sports, or ad-supported tiers, these platforms are pulling out all the stops to keep you subscribed.

As a result, the video streaming market is projected to grow from $674.25 billion in 2024 to $2.66 trillion by 2032, exhibiting a CAGR of 18.7%. This expansion is fueled by increasing internet penetration, rising demand for personalized content, and the shift from traditional cable to digital platforms. As competition heats up, companies must differentiate themselves through exclusive content, partnerships, and enhanced user experiences to maintain their foothold in the market.

With that in mind, let’s dive into the fundamentals of the above-mentioned streaming giants in detail:

Amazon.com, Inc. (AMZN)

AMZN is a global retail giant that offers consumer products, advertising, and subscription services through online and physical stores in North America and international markets. With a market cap of $1.76 trillion, the company operates through three segments: North America; International; and Amazon Web Services (AWS).

On December 9, 2024, AMZN and Intuit Inc. (INTU) announced a multi-year partnership to empower millions of Amazon sellers through Intuit’s AI-driven platform. This collaboration aims to provide sellers with advanced financial management tools, compliance assistance, and access to capital seamlessly integrated within Amazon’s ecosystem for improved financial insights.

In the same month, AWS partnered with Poolside to incorporate Poolside’s generative AI Assistant into Amazon Bedrock. This multi-year collaboration will allow enterprises to customize AI tools for software development using their own data while benefiting from AWS’s secure and scalable infrastructure.

AMZN’s trailing-12-month net income and levered FCF margins of 8.04% and 8.76% are 84.4% and 85.4% higher than their respective industry averages of 4.36% and 4.73%. Likewise, its trailing-12-month ROCE of 22.56% compares to the industry average of 10.76%.

For the third quarter of 2024, which ended on September 30, AMZN’s total net sales increased 11% year-over-year to $158.88 billion. Its operating income grew 55.6% from the year-ago value to $17.41 billion. Its net income amounted to $15.33 billion, representing an increase of 55.2% from the prior year quarter. Also, the company’s EPS for the quarter came in at $1.43, up 52.1% year-over-year.

Analysts expect AMZN’s revenue for the fourth quarter (ended December 2024) to increase 10.2% year-over-year to $187.23 billion. Meanwhile, its EPS for the same quarter is expected to grow 48.5% from the prior year to $1.48. Moreover, the company has surpassed the consensus EPS estimates in each of the trailing four quarters.

The stock has gained 47.5% over the past six months and 8.3% year-to-date to close the last trading session at $242.06.

AMZN’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, which equates to Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.

AMZN has an A grade for Sentiment and a B for Growth, Momentum, and Quality. It is ranked #12 out of 47 stocks in the A-rated Internet industry. Click here to see the additional ratings for AMZN (Value and Stability).

Netflix, Inc. (NFLX)

NFLX is a leading provider of entertainment services. It offers a wide range of TV series, documentaries, feature films, and games in numerous genres and languages. The company enables its members to stream content on various internet-connected devices, including TVs, digital video players, set-top boxes, and mobile devices.

NFLX’s trailing 12-month EBIT margin of 26.71% is 168.9% higher than the industry average of 9.93%. Likewise, the stock’s trailing 12-month net income and levered FCF margins of 22.34% and 54.50% are considerably higher than their respective industry averages of 3.87% and 9.01%.

During the fiscal fourth quarter that ended December 31, 2024, NFLX’s revenue increased 16% year-over-year to $10.25 billion. Its operating income rose 51.9% from the prior-year quarter to $2.27 billion. In addition, the company’s net income and EPS came in at $2.36 million and $4.27, up 99.3% and 102.4% year-over-year, respectively.

The consensus revenue estimate of $10.50 billion for the fiscal first quarter (ending March 2025) represents a 12% increase year-over-year. The consensus EPS estimate of $5.74 for the same period indicates an 8.7% improvement year-over-year. The company has an impressive surprise history; it surpassed the consensus revenue and EPS estimates in each of the trailing four quarters.

Over the past year, the stock has surged 79.1%, closing the last trading session at $994.87.

NFLX’s POWR Ratings reflect this outlook. It has earned a B grade for Sentiment and Quality. Among 47 stocks in the Internet industry, it is ranked #22.

Click here to see the other ratings of NFLX for Growth, Value, Momentum, and Stability.

The Walt Disney Company (DIS)

DIS is a diversified worldwide entertainment company that operates through three segments: Entertainment; Sports; and Experiences. It produces and distributes film and television video streaming content under banners such as ABC Television Network, Disney, Freeform, FX, Fox, National Geographic, and Star brand television channels.

On January 06, 2025, DIS and fuboTV Inc. (FUBO) agreed to merge Hulu + Live TV with Fubo, forming a combined vMVPD company. Disney will own 70% of Fubo, which will remain publicly traded under its existing management. Both services will continue operating separately, offering greater content flexibility to a combined 6.2 million North American subscribers. The deal is pending regulatory and shareholder approvals.

On December 04, 2024, buoyed by its strong financials, the company’s board of directors declared a dividend of $1.00 per share, representing an increase of 33% year-over-year. Shareholders will receive the payout in two equal installments of $0.50 per share, with the second payment due on July 23, 2025.

Reflecting on the company’s success, CEO Robert A. Iger stated, “With the company operating from a renewed position of strength, we are pleased to increase the dividend for shareholders while continuing to invest for the future and drive sustained growth through Disney’s world-class portfolio of assets.”

The stock’s trailing 12-month net income margin of 6.07% is 56.9% higher than the industry average of 3.87%. Further, its trailing-12-month ROCE and ROTA of 5.54% and 2.85% are 10.9% and 58.9% above the industry averages of 5% and 1.79%, respectively.

DIS’ total revenue rose 4.8% year-over-year to $24.69 billion for the first quarter that ended December 28, 2024. Its segment operating income increased 30.5% from the year-ago value to $5.06 billion. The company’s attributable net income and EPS came in at $2.55 billion and $1.41, reflecting an increase of 33.6% and 35.6%, respectively, over the prior year’s quarter.

Street expects DIS’ revenue and EPS for the second quarter (ending March 2025) to increase 4.7% and 1.2% year-over-year to $23.13 billion and $1.22, respectively. Moreover, the company topped the consensus EPS estimates in each of the trailing four quarters, which is promising.

DIS’ shares have gained 26.2% over the past six months to close the last trading session at $110.54.

DIS’ stance is apparent in its POWR Ratings. It has a B grade for Stability and is ranked #8 among 13 stocks in the B-rated Entertainment – Media Producers industry.

To see additional POWR Ratings of DIS for Growth, Value, Momentum, Sentiment, and Quality, click here.

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AMZN shares were trading at $238.04 per share on Thursday afternoon, up $1.87 (+0.79%). Year-to-date, AMZN has gained 8.50%, versus a 3.18% rise in the benchmark S&P 500 index during the same period.

Shweta's profound interest in financial research and quantitative analysis led her to pursue a career as an investment analyst. She uses her knowledge to help retail investors make educated investment decisions.

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