The outgoing 2024 was generally strong for the streaming platforms whose number constantly rises and the tech giants. But some did better than others. In his appearance on Bloomberg TV Bulgaria, Ivailo Chaushev, Chief Market Analyst at Deltastock, takes a look at some of them.
Netflix: Evolution Beyond Traditional Streaming
In 2024, Netflix delivered outstanding results, with its stock soaring nearly 100% year-to-date. This remarkable performance was fueled by Netflix’s innovative content strategy and its user-friendly interface. Notably, 7 out of the top 10 most-watched series of the year were Netflix originals, underscoring the company’s dominance in the streaming industry.
Netflix’s entry into live sports streaming marked a pivotal shift. The recent Jake Paul vs. Mike Tyson boxing match, streamed live on Netflix, became the most-watched sporting event, attracting a peak of 65 million accounts. This breakthrough not only showcased Netflix’s ability to engage massive audiences but also opened lucrative avenues for advertising revenue, a space traditionally dominated by television. Despite minor technical issues, Netflix demonstrated its ability to thrive in this new segment.
From a financial perspective, Netflix is thriving. Earnings per share (EPS) increased by 45% year-over-year, revenue growth reached 15%, and the platform added 5.07 million new subscribers, beating market estimates of 4.52 million. With operating margins projected to hit 28% and quarterly forecasts revised upward, Netflix has transitioned from focusing solely on subscriber growth to emphasizing profitability and return on investment (ROI).
Looking ahead, Netflix has significant growth potential. On average, users spend 2 hours per day on Netflix, compared to 4-5 hours of daily TV time for the typical American. This disparity leaves room for subscriber engagement to double in the coming years.
Disney: Leadership, Streaming, and Entertainment Dominance
The Chief Market Analyst at Deltastock also said Disney shares have risen by 20% year-to-date, a more modest increase compared to Netflix. However, Disney has consistently exceeded expectations, driven by its profitable Disney+ streaming service. Last quarter, Disney+ added 4.4 million new users, a significant achievement considering market saturation in streaming.
Disney remains a leader in the entertainment industry, dominating the top 10 most-watched movie charts with classics like Moana, Frozen, and Encanto. In contrast, Netflix holds only 4 spots on this list. However, Netflix’s partnerships with Sony and Universal Studios could challenge Disney’s long-term position.
The upcoming CEO transition at Disney is expected to shape the company’s strategic direction, focusing on content strategy and competition in the streaming wars.
Tesla: Innovation and Market Growth
Tesla continues to impress investors, with its stock price up 65% year-to-date. A major highlight is record-breaking sales in China, where Tesla sold 21,000 vehicles in the first week of December alone. This performance cements Tesla’s status as a top player in one of the world’s largest automotive markets.
Tesla’s forthcoming robotaxi service, set to launch in 2025, represents a significant leap in autonomous transportation. The inclusion of a remote operator for safety ensures compliance with regulations, while the service positions Tesla as a trailblazer in the electric vehicle (EV) and mobility innovation sectors.
Nvidia: AI and Regulatory Challenges
Despite a drop in its share price to $135, Nvidia remains a focal point for investor interest. Ongoing antitrust investigations in China reflect escalating tensions between the U.S. and China. Nevertheless, Nvidia retains strong potential in artificial intelligence (AI) and graphics processing unit (GPU) technology, which are crucial for advancements in machine learning and gaming.
Alphabet: Quantum Computing Breakthrough
Alphabet experienced an 8% stock growth last week, driven by the unveiling of its quantum computing chip, “Willow.” This revolutionary chip performs tasks in 5 minutes that would take billions of years on a traditional computer, positioning Alphabet at the forefront of quantum technology. As a leader in Google AI and innovative computing, Alphabet is shaping the future of technology solutions.
Amazon: Global Expansion and AI Integration
At the end of his interview on Bloomberg TV Bulgaria, Ivailo Chaushev mentioned that Amazon continues to diversify, exploring online car sales and piloting fast-food delivery services in India. The company’s integration of artificial intelligence into operations promises improved profit margins and greater efficiency. While the risk-return imbalance remains a concern, Amazon’s long-term growth strategy and global expansion plans suggest strong potential by 2025.
S&P 500: Market Trends and Projections
Despite a sluggish start to December, historical data on the S&P 500 Index suggests a strong year-end recovery is likely. If market breadth improves, the index could reach values around 6,150, providing optimism for investors.
Risk warning:
This article is for information purposes only. It does not post a buy or sell recommendation for any of the financial instruments herein analysed.
Deltastock assumes no responsibility for errors, inaccuracies or omissions in these materials, nor shall it be liable for damages arising out of any person’s reliance upon the information on this page.
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