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7 Streaming Stocks to Tune Into After Netflix Struck Gold With Squid Game

Netflix’s (NASDAQ:NFLX) hit streaming series Squid Game recently sent shares of NFLX to new 52-week highs last week. NFLX stock rallied after posting…

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This article was originally published by Investor Place

Netflix’s (NASDAQ:NFLX) hit streaming series Squid Game recently sent shares of NFLX to new 52-week highs last week. NFLX stock rallied after posting strong subscription growth in its quarterly results.

Yet those quarterly figures are not Netflix’s highlight. On the conference call, management and analysts calling to ask questions couldn’t get enough of Squid Game, the company’s best series launch ever, which garnered 142 million viewers in just a few weeks.

What is even more impressive is the viewership outside of the North American market. Netflix owes dominance in South Korea to its content team in the country. They ended up choosing the biggest title of 2021.

Co-CEO and Chief Content Officer Ted Sarandos said that the Netflix team in Korea recognized something no one else did. This created an environment for the creators of that local show to succeed. Furthermore, the show became viral. Viewers could identify with the deep struggle of deep financial debt as the rich became richer. The inexpensive cost of producing show relative to its gargantuan return will spur competitors to copy Netflix’s model. Streaming firms may copy the Squid Game’s underlying story without any success. Copy-cats will not have an easy time emulating the show’s originality. Netflix could release a sequel, which will probably fail, too. The writers probably did not expect the story to resonate as well as it did. Any rushed writing on a sequel will not appeal to viewers.

Here are 7 streaming stocks to tune into after Netflix struck gold with Squid Game:

  • Netflix (NASDAQ:NFLX)
  • Apple (NASDAQ:AAPL)
  • Comcast (NASDAQ:CMCSA)
  • Disney (NYSE:DIS)
  • fuboTV (NYSE:FUBO)
  • Roku (NASDAQ:ROKU)
  • AT&T (NYSE:T)

Apple, Netflix, and Roku are the highest quality among these picks according to StockRover. As a trade-off, investors must pay relatively more for those stocks. By contrast, fuboTV has the lowest value and quality score. Readers should interpret the score as temporary and unreflective of upcoming growth. As FUBO’s sports-betting offering grows, those scores should increase.

Netflix (NFLX)

The Netflix (NFLX) logo on a tablet with earbuds and a bowl of popcorn nearby.Source: Riccosta / Shutterstock.com

Netflix posted revenue growth of 16.1% year-over-year (YoY) to $7.48 billion. Earnings per share topped $3.19.

In the fourth quarter, the company expects revenue of $7.71 billion and EPS of 80 cents. Global streaming paid net additions of 8.5 million make for a healthy forecast. Before Squid Game’s success and the strong subscriber growth, investors abandoned Netflix stock. But the global streaming giant proved that it can acquire content at low costs. Viewers are more than willing to watch foreign streaming series for their unique cultural offering.

Besides its hit Korean series, Netflix continued to demonstrate strong average revenue per membership. In the emerging markets, ARM was $11.65, up 7% YoY. Asia Pacific ARM grew by 4% YoY to $9.60. Latin America’s ARM was $7.86, up 8% YoY. And in US/Canada (UCAN), revenue rose by 10% YoY to $14.68. UCAN is Netflix’s biggest market, accounting for $3.2 billion of total revenue.

The reopening of businesses post-Covid could hurt viewership. Netflix’s Chief Financial Officer, Spence Neumann, thinks that the service will benefit from a big return on English language series, including Cobra Kai, Tiger King, and The Witcher.

Apple (AAPL)

An Apple (AAPL) MacBook Air laptop sitting under bright purple lights.Source: WeDesing / Shutterstock.com

Apple recently disrupted the mobile advertising market with its new privacy settings. It also launched new Mac computers, refreshed the iPhone and iPad line-up and updated its AirPods. Its TV streaming service will benefit from a growth in device sales.

On Apple TV Plus, the service has new series releases including Invasion and The Morning Show. Streaming services are still in a growth phase, especially considering Apple said that it had under 20 million subscribers. It probably would have preferred not to reveal the figure, but needed to do so because at the time, the International Alliance of Theatrical Stage Employees was planning to strike.

Apple’s streaming service is a bonus to the underlying stock. The device giant will benefit from protecting user privacy. This will prevent its users from getting tracked by advertising firms. Growth in iPhone sales will give Apple a chance to pitch its streaming music and video services and the company will benefit from low acquisition costs for sign-ups.

Comcast (CMCSA)

Comcast (CMCSA) sign on the Comcast regional headquarters in St. Paul, Minnesota.Source: Ken Wolter / Shutterstock.com

Comcast reportedly spent billions on Peacock, its flagship streaming service. Peacock started slowly when it debuted; in July, it had only 3 million paying subscribers out of its 14 million monthly users.

Peacock had films like Halloween Kills showing simultaneously online and in theaters. This may attract sign-ups but ultimately cost more than it was worth for Comcast. As companies end plans for simultaneous releases, Comcast will need to modify its video over the internet strategy.

Comcast stock chart

Bullish divergence

Chart courtesy of Stock Rover

In the chart above, CMCSA stock failed to break out above resistance at the 50-day simple moving average. Below the stock chart, you can see that the moving average convergence divergence slope rose.

The rising MACD and falling stock price suggests that Comcast stock could rebound next.

Comcast is still in the early days of integrating streaming apps with the Peacock platforms. As more people use Peacock each month, Comcast may cross-sell its cable subscription and Internet plans to customers. The more customers save on a bundled plan, the higher Comcast’s revenue and margins will rise.

On Wall Street, analysts have an average price target of around $68.00, according to Tipranks.

Disney (DIS)

Statue of Disney's (DIS) Mickey Mouse in Bangkok, Thailand.Source: spiderman777 / Shutterstock.com

Disney’s theme parks will thrive as the pandemic-related lockdown eases. This should more than counterbalance any unlikely falling momentum in its streaming service.

Disney+ is a growth opportunity that will lift DIS stock. The service costs less than Netflix when customers buy an annual subscription. And as filming activity increases, Disney will add more content and expand globally. This will boost subscriptions at rates higher than investors expect.

Disney shares are trading in a range. It could break out to the upside after the company reports quarterly results on Nov. 10. But bears are speculating that streaming will slow. Hybrid movie releases also add to the revenue uncertainties.

Disney will need to find a balance between maximizing revenue from theatres and boosting subscriptions through exclusive releases on its streaming service. Investors will frown on slowing subscriber growth by assigning a lower revenue multiple to the stock. P/E multiple declines are a potential risk factor.

Cautious investors will get better insight into Disney’s streaming services growth in the next quarterly report. Management will need to explain how Disney will reinvest growing earnings from its theme parks to streaming content.

fuboTV (FUBO)

The fuboTV mobile app icon is seen on an iPhone.Source: Tada Images / Shutterstock.com

FUBO stock traded close to $35 earlier this month before falling to $21.42. But investors are ignoring that fuboTV increased its lead in its sports-first live TV streaming platform.

Last month on Oct. 11, it announced a carriage agreement with AT&T SportsNet Rocky Mountain. fuboTV will stream AT&T’s regional coverage of three professional sports teams. They are the Seattle Mariners from the Major League Baseball, the Portland Trail Blazers from the National Basketball Association, and Seattle Kraken from the National Hockey League.

To complement its sports streaming, fuboTV ‘s Fubo Gaming unit is getting licenses for mobile event wagering. For example, it received a license to offer mobile event wagering from Arizona’s Department of Gaming on Sept. 2. Previously, it received approval to offer online sports wagering in Iowa. In its Q4 shareholder letter, fuboTV said, “We plan to launch free-to-play predictive games in the third quarter (first to fuboTV subscribers and later to all consumers) and our sportsbook in the fourth quarter.”

Fubo will integrate Sportsbook into its live TV streaming platform. Viewers will have both seamless viewing and may enter wagers.

Roku (ROKU)

ROKU Stock Will Continue Benefitting From the TCL PartnershipSource: Michael Vi / Shutterstock.com

When the world experienced the first wave of the pandemic, Roku stock plunged in March 2020. It then staged an incredible run-up to peak at almost $500. ROKU would subsequently report disappointing subscriber growth in the last quarter, hurting the share price.

Roku’s dispute with YouTube TV could hurt the stock further, creating a better entry point for investors. Roku wrote that YouTube TV could come off its platform if the two companies cannot negotiate a deal that would resolve search concerns. Roku said that big tech enterprises are exerting their market power to extend control over independent businesses.

Roku accused YouTube of putting the fair and open competitive streaming marketplace at risk. Since it does not make any money from YouTube’s ad-supported video sharing, it can drop the service. Still, this is a lose-lose scenario because Roku users may find YouTube’s offering appealing.

Roku is building its content library to attract subscribers. It launched 23 Roku originals on Aug. 13, including four all-new premiers available in the U.S. Canada, and the U.K. As the company adds more content, user activity will increase, lifting the value of Roku’s platform.

Other than a recent “sell” rating from one analyst, others remain bullish. The average price target is $408, according to Tipranks.

AT&T (T)

A photo of an AT&T office building.Source: Roman Tiraspolsky / Shutterstock.com

Last Friday, AT&T stock closed at a 52-week low. Short-sighted investors need to look at the movie ticket sales in the quarter.

AT&T’s Dune stands a good chance of topping the weekly movie box office in the next few weeks. AT&T also streamed the movie simultaneously with the theater release. This could spur HBO Max subscription growth without hurting movie sales. Plus HBO Max is streaming the film on a 2.39:1 aspect ratio. Movie buffs will likely prefer to watch it in large format on IMAX.

In the third quarter, CFO Pascal Desroches said that HBO Max had around 70 million global subscribers. This is due to growth in its international markets. The average revenue per user remains low because of the high international base. In late June, AT&T launched HBO Max in Latin America, and will next be entering Spain and the Nordic region. This should result in a sustained growth rate for the streaming service.

But HBO MAX’s launch in Europe will not come cheap. The company expects significant costs ahead. Also, it will have high advertising sharing costs through the WarnerMedia and DirectTV advertising sharing arrangement. After forecasting a free cash flow target of around $26 billion, AT&T is an income-generating stock and a play on the growth in streaming.

On the date of publication, Chris Lau did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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The post 7 Streaming Stocks to Tune Into After Netflix Struck Gold With Squid Game appeared first on InvestorPlace.




Author: Chris Lau

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Ground Breakers: Costs rise for ASX gold miners as inflation bites

Gold miners have endured an arduous 2021 in equity markets. While cash has been easy to come by and deals … Read More
The post Ground Breakers: Costs…

Gold miners have endured an arduous 2021 in equity markets.

While cash has been easy to come by and deals are being done, most gold producers have been hit by poor sentiment as prices have struggled to break out.

Over the past year the All Ordinaries Gold Index has sagged around 20%.

Although most are still making good money, rising costs and the impact of inflation and labour challenges are also hitting miners in the hip pocket.

Metals Focus says the global average all in sustaining cost for gold miners hit its highest level since 2013 in the September quarter, rising 3.6% quarter on quarter to US$1123/oz.

Costs are on the rise for gold producers
Pic: Metals Focus

Australian miners were the worst off when it came to cost pressures, with costs in Australia climbing by an average of 13.1%.

Global AISC margins fell by 9% QoQ to US$667/oz, with Australia’s sliding 18%, Canada’s dropping 5% and Russia’s falling 7%.

Margins remain high historically speaking, and 94% of gold operations tracked by Metals Focus remain profitable.

“As might be expected, increasing costs and a lower gold price have squeezed margins in the September quarter,” they said.

“However it is worth noting that their margins are still substantially higher than in previous years.”

“Despite the relatively healthy margins, the lower gold price and rising costs are putting pressure on higher cost operators,” Metals Focus said.

“While the proportion of output that is profitable remains high at 94%, it has fallen from 98% in Q2.21. A number of operations and projects are already under strategic review with regards to increasing costs.”

Costs are up for goldies for the fourth straight quarter
A few more gold miners are touching the margins. Pic: Metals Focus

“If cost inflation persists and margins diminish even further it is likely that development project approvals will be delayed and also possible that the highest cost production of more marginal producers could potentially be closed.”

Although global average head grades rose 0.5% (5% in Australia), inflationary pressures including crude oil prices, rising salaries amid Covid restrictions, labour shortages and turnover, and the cost of equipment due to supply chain issues drove up operating costs for the fourth straight quarter.

Markets reacted badly this morning to news of the spread of the omicron coronavirus variant around the world, with materials sliding 1.19% this morning.

Chalice soars on new Julimar discovery

Market darling is a phrase that doesn’t quite cut it with Chalice Mining (ASX:CHN), which is up 60 times over since making the Gonneville nickel-copper-PGE discovery 70km north of Perth early last year.

Shares jumped more than 4% this morning after Chalice announced another discovery at Julimar, where last month it declared Gonneville the world’s biggest nickel sulphide discovery in 20 years and Australia’s first major platinum group elements resource.

The new mineralised intrusion is an ultramafic unit to the west of Gonneville, separated by around 70m of metasediments.

Located immediately south of the 6.5km Hartog anomaly, Chalice struck 3m at 2g/t palladium, 0.3g/t platinum, 0.6% nickel, 0.5% copper and 0.05% cobalt for a 1.7% nickel equivalent from 68m in one hole.

The second mineralised intercept struck 2m at 1.8g/t Pd, 0.2g/t Pt, 0.6% Ni, 0.5% Cu and 0.06% Co for a 1.9%NiEq from 139.2m.

The discovery did not show up on EM, “highlighting the potential for further blind discoveries” according to Chalice.

While Chalice has already drilled around 180,000m at Julimar, part of its value proposition is the idea that more will be found with the Gonneville resource accounting for just 7% of the 26km strike of the Julimar complex.

It has submitted a conservation management plan to get at the Hartog target, which will be a bit more thorny because unlike previous drilling which has been located on private farmland, Hartog lies beneath the Julimar State Forest.

Chalice says its CMP for drilling the Hartog-Baudin targets is sitting with the WA Government and it expects approvals shortly.

Chalice Mining share price today:

 

The post Ground Breakers: Costs rise for ASX gold miners as inflation bites appeared first on Stockhead.




Author: Josh Chiat

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QMines tops the class with second resource update just a few months after listing

Special Report: In just the six short months since making its debut on the ASX, QMines has delivered its second … Read More
The post QMines tops the…

In just the six short months since making its debut on the ASX, QMines has delivered its second resource estimate for the Mt Chalmers copper-gold project, which is 38% higher than the previous estimate and largely in the higher confidence measured and indicated categories.

QMines (ASX:QML) has delivered an updated resource for its flagship Mt Chalmers project in Queensland of 5.8 million tonnes at 1.7% for 101,000 tonnes of contained copper equivalent, which includes for the first time measured and indicated resources.

Significantly, 78% of the updated resource falls into the higher confidence measured and indicated categories. This is important because it gives an explorer sufficient information on geology and grade continuity to support mine planning and allows the definition of a reserve.

The updated resource is not far off the 120,000 tonnes that respected Australian investment firm Shaw and Partners forecast for the latest resource upgrade in a research note in early October.

Shaw and Partners, however, anticipated the updated resource would still be 100% inferred. This attracted an increased 72c price target from the investment firm which is a nearly 90% premium to the 38c share price QMines is trading at currently.

QMines share price chart (ASX:QML)


 

So the fact that such a large chunk of the resource is in the measured and indicated categories is a big leap in terms of confidence in the resource and should be a positive signal to the market of QMines’ ability to over-deliver against the target.

“As the company only listed in May 2021, it is a fantastic achievement to be delivering a resource upgrade for our shareholders in such a short period of time,” executive chairman Andrew Sparke said.

“It is very pleasing to see that the upgraded resource has substantially grown in both size and confidence level, with the measured and indicated categories now comprising 78% of the overall resource.”

Offering further exploration upside, Sparke says QMines has identified several volcanic-hosted massive sulphide (VHMS) prospects outside the known resource, which bodes well for further resource upgrades and the potential for future development.

A world class mine in the making

Mt Chalmers is already considered one of the world’s highest-grade gold-rich VHMS systems.

QMines has previously demonstrated the significant size potential and high-grade nature of the deposit, with recent peak grades of from a 15-hole, 2,182m diamond drilling program including 5.3% copper, 11.75 grams per tonne (g/t) gold, 243g/t silver, 33% zinc and 19% lead.

Those results, which were reported just last week, follow close on the heels of ‘bonanza’ grade copper, gold, silver, lead and zinc intercepts announced in October.

A major 30,000m drilling program continues unabated, with a third resource upgrade planned for the first half of 2022.

QMines

 

This article was developed in collaboration with QMines, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

The post QMines tops the class with second resource update just a few months after listing appeared first on Stockhead.






Author: Special Report

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Miramar finds ‘very large’ gold footprint at Glandore project

Special Report: Miramar has outlined shallow supergene gold anomalism over almost 5 kilometres of strike and across multiple targets at … Read More
The…

Miramar has outlined shallow supergene gold anomalism over almost 5 kilometres of strike and across multiple targets at its Glandore project in WA.

Multiple holes from the lake aircore drilling across the expanded Glandore East footprint returned and/or ended in results >0.25 g/t gold including hole GDAC037 which intersected 6m at 0.62 g/t from 12m and ended in 2m at 1.04 g/t.

Hole GDAC061 intersected 4m at 0.46 g/t and 4m at 0.61 g/t – and is approximately 400m south of historical aircore holes which intersected 6m at 1.33 g/t and 9m at 1.10 g/t (EOH).

The Glandore East footprint now extends for over 3km towards historic gold workings and remains open.

Follow up drilling planned in the new year

Miramar Resources’ (ASX:M2R) executive chairman Allan Kelly, said the recent lake drilling had identified a very substantial gold system at Glandore and greatly increased the potential for the discovery of gold mineralisation including that like the nearby Majestic and Trojan deposits.

“Our first pass lake drilling has outlined coherent supergene gold anomalism within multiple targets over almost five kilometres of strike which is a considerable proportion of the entire project area,” he said.

Miramar Resources
Glandore Project showing recent drilling and historical holes.

“Today’s results indicate the presence for multiple NE-trending mineralised structures within the granodiorite pluton extending over a significant strike length, along with coherent gold mineralisation across several other targets which will need to be followed up early in the new year.

“Gold mineralisation at Majestic and Trojan is also hosted in NE-striking structures within granitic intrusions, so our recent results indicate significant potential for a similar discovery at Glandore.”

The company will now plan for follow-up aircore drilling in the new year, and then plan for diamond drilling.

 


 

 

This article was developed in collaboration with Miramar Resources Limited, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

The post Miramar finds ‘very large’ gold footprint at Glandore project appeared first on Stockhead.



Author: Special Report

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