3 Digital Media Innovators Capitalizing on Streaming Trends

Streaming is everywhere these days, and it’s no surprise that consumers spend over an hour a day glued to streaming platforms. Sure, it’s down slightly from the 2022 peak, but let’s be honest: bingeing your favorite shows isn’t going anywhere. Even with rising prices, 26% of people still happily pay for streaming services, proving that a great show or movie is always worth the splurge.

Considering the global appetite for streaming is only set to grow, companies like Apple Inc. (AAPL), Amazon.com, Inc. (AMZN), and Netflix, Inc. (NFLX) are finding new ways to keep audiences hooked. From innovative content strategies to user-friendly features, these companies are staying ahead of the curve and keeping up with the ever-changing preferences of global viewers.

According to research, the number of global streaming subscriptions is anticipated to hit 2 billion by 2029, driven largely by the booming Asia-Pacific market and the need for diverse content strategies. Meanwhile, 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%. The key to this growth lies in how well companies can adapt to the unique challenges of international markets, from tailoring content to fit cultural preferences to navigating regional regulations.

With that in mind, let’s examine the fundamental aspects of the above-mentioned stocks in detail:

Apple Inc. (AAPL)

Tech giant AAPL designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories, and it sells various related services. Its product offerings include iPhone, Mac, AirPods Max, iPad, Apple TV, Apple Watch, HomePod, and accessories. It also provides DarwinAI, which specializes in visual quality inspection through its Explainable AI platform.

On December 10, 2024, the company launched three new live global radio stations on Apple Music: Apple Música Uno, Apple Music Club, and Apple Music Chill. These additions join Apple Music 1, Apple Music Hits, and Apple Music Country, offering music fans worldwide free access to live-hosted radio without requiring a subscription.

This strategic move strengthens AAPL’s position in the streaming market by expanding its live radio offerings, capturing a broader audience, and enhancing user engagement through unique, artist-driven content.

In terms of the trailing-12-month levered FCF margin, AAPL’s 28.35% is 148.2% higher than the 11.42% industry average. Similarly, its 23.97% trailing-12-month net income margin is considerably higher than the industry average of 3.71%. Also, its trailing-12-month ROCE of 157.41% compares favorably to the industry average of 4.28%.

AAPL’s total net sales for the fourth quarter (ended September 28, 2024) increased 6.1% year-over-year to $94.93 billion. The company reported a gross margin of $43.88 billion, indicating an 8.5% growth from the prior year quarter. AAPL’s net income came in at $14.74 billion, and its earnings per share stood at $0.97.

The consensus revenue estimate of $124.09 billion for the fiscal first quarter (ended December 2024) represents a 3.8% increase year-over-year. The consensus EPS estimate of $2.35 for the same quarter indicates a 7.9% improvement year-over-year. The company has an excellent surprise history; it surpassed the consensus revenue and EPS estimates in each of the trailing four quarters.

Over the past nine months, the stock has surged 34.9%, closing the last trading session at $223.66.

AAPL’s stance is apparent in its POWR Ratings. The stock has an A grade for Quality. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.

Among the 40 stocks in the Technology – Hardware industry, it is ranked #23. Click here to see the additional AAPL ratings (Growth, Value, Momentum, Stability, and Sentiment).

Amazon.com, Inc. (AMZN)

AMZN is a global giant in the retail sector, offering consumer products, advertising, and subscription services through online and physical stores across North America and international markets. The company has a market cap of $1.76 trillion and 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 83.3% and 97.9% higher than their respective industry averages of 4.39% and 4.43%. Likewise, its trailing-12-month ROCE of 22.56% compares to the industry average of 10.87%.

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 $187.26 billion, while its EPS for the same quarter is expected to grow 47.8% from the prior year to $1.48. Moreover, the company has surpassed the consensus EPS estimates in each of the trailing four quarters.

AMZN shares have gained 52.1% over the past year and 7.3% year-to-date to close the last trading session at $235.42.

AMZN’s POWR Ratings reflect this robust outlook. The stock has an overall rating of B, which equates to Buy in our proprietary rating system.

AMZN has an A grade for Sentiment and a B for Growth, Momentum, and Quality. It is ranked #12 out of 48 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, offering a wide array of TV series, documentaries, feature films, and games across 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 173.9% higher than the industry average of 9.75%. Likewise, the stock’s trailing-12-month net income and levered FCF margins of 22.34% and 55.59% are considerably higher than their respective industry averages of 3.74% and 8.77%.

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.

Street expects NFLX’s revenue for the fiscal fourth quarter (ended December 31, 2024) to increase 12.1% year-over-year to $10.51 billion. Its EPS for the same quarter is expected to grow 8.6% from the prior year period to $5.74. It is no surprise the company has topped the EPS and revenue estimates in each of the trailing four quarters.

The stock has soared 102.8% over the past year to close the last trading session at $984.86.

NFLX’s strong fundamentals are reflected in its POWR Ratings. It has an overall rating of B, which equates to Buy in our proprietary rating system.

It also has a B grade for Growth, Sentiment, and Quality. Out of 48 stocks in the Internet industry, it is ranked #13. Click here to see the other ratings of NFLX for Value, Momentum, and Stability.

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AAPL shares . Year-to-date, AAPL has declined -10.69%, versus a 4.04% 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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