Top Streaming Stocks to Consider for Your Investment Portfolio

Streaming content allows users to access audio and video files over the Internet without the need for full downloads. This innovation greatly reduces waiting times, depending on the speed of the Internet connection.

The streaming landscape rests on a diverse content creation foundation that includes four main categories: film and TV studios, live media producers, game publishers and developers, and user-generated content. This segment focuses on companies deeply involved in streaming music and video, including well-known consumer brands as well as the technology and infrastructure that support them.

The Competing Dynamics of Streaming Services

The race for exclusive content in subscription video-on-demand and music platforms has heated up, leading streaming companies to invest significantly in content creation. As exclusive offerings continue to differentiate providers amid rising competition from platforms like the metaverse, firms compete for market share through attractive content libraries, special features, and competitive pricing strategies.

Three Streaming Giants to Watch

Here are three streaming stocks with solid revenue and earnings potential for 2025, all carrying a favorable Zacks Rank #2 (Buy). Each has enjoyed positive earnings estimate revisions in the past month. You can find the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The chart below highlights the price performance of these three leading stocks for the last three months.

Image Source: Zacks Investment Research

Spotlight on Netflix Inc.

Netflix showcased impressive financial results for the fourth quarter of 2024. The company reported earnings of $4.27 per share, surpassing the Zacks Consensus Estimate by 1.67%, and a remarkable jump of 102.4% year-over-year. Revenues reached $10.24 billion, marking a 16% increase from the previous year and exceeding consensus expectations by 1.29%.

In the fourth quarter, Netflix maintained strong viewer engagement, with around two hours of viewing per member daily, which indicates solid customer retention. The company achieved a record addition of 18.91 million subscribers, a significant rise from the 13.12 million added in the same quarter last year.

The average revenue per membership grew by 1% year over year, with a 3% increase on a foreign-exchange neutral basis. By the end of this quarter, Netflix boasted 301.63 million paid subscribers across over 190 countries, reflecting a year-over-year increase of 15.9%.

Promising Outlook for Netflix

For Q1 2025, Netflix anticipates total revenues of $10.416 billion, an increase of 11.2% from last year. Management predicts earnings of $5.58 per share for the upcoming quarter. The company projects total revenue for 2025 to range between $43.5 billion and $44.5 billion, targeting an operating margin of 29%, an upward revision from an earlier estimate of 28%. This margin also surpasses the 27% operating margin recorded in 2024.

Positive Estimates for NFLX

The Zacks Consensus Estimate for 2025 shows revenues at $44.43 billion, representing a 13.9% year-over-year increase, with earnings per share expected to rise by 24% to $24.58. Over the past month, forecasts for current-year earnings improved by 4.6%.

Looking ahead to 2026, the consensus estimates show anticipated increases of 11.6% in revenue and 20.5% in EPS, with earnings expectations raised by 6.2% in recent weeks.

Image Source: Zacks Investment Research

Insights on The Walt Disney Co.

The Walt Disney Company reported adjusted earnings of $1.76 per share for the first quarter of fiscal 2025, exceeding the Zacks Consensus Estimate by 22.2% and reflecting a year-over-year growth of 44.3%. Revenues climbed 4.8% year-over-year to $24.69 billion, beating the consensus figure by 0.1%.

As of December 28, 2024, Disney+ reported 124.6 million paid subscribers, up from 122.7 million on September 28, 2024. Average monthly revenue per paid subscriber in the U.S. rose from $7.70 to $7.99, driven by price increases, although this was slightly offset by a higher percentage of subscribers benefiting from promotional offers.

Internationally, average monthly revenue per subscriber increased from $6.78 to $7.19 primarily due to pricing and higher advertising revenues.

Encouraging Projections from Disney

For fiscal 2025, Disney expects a high single-digit growth in adjusted EPS compared to fiscal 2024, along with over $15 billion in operational cash flow. In the Entertainment sector, Disney anticipates double-digit percentage growth in operating income from the previous fiscal year. The company estimates an operating income of approximately $875 million for its Direct-to-Consumer segment.

However, Disney expects a slight decline in its core Disney+ subscribers in the second quarter compared to the first. The company also anticipates a $100 million negative impact on sports segment operating income due to college sports and an additional NFL game, along with about $50 million from withdrawing from the Venu Sports joint venture.

Positive Revisions for DIS Stock

For fiscal 2025, ending September 2025, the Zacks Consensus Estimate indicates revenues at $94.62 billion, representing a significant year-over-year growth.