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Posted November 13, 2020

Scott Stewart

By Scott Stewart

🍿 Streaming & Subscriptions 🎦

Welcome to the Rude Awakening

What could go wrong on a Friday the 13th in 2020? 😅

Thats the interesting scenario we're in today

As Im recording here a bit before the market open, most of the world markets are positive going into the day.

Our Advance/Decline lines on nearly all of our major indices are pointing upward.

Its been a highly volatile week, but a positive one, assuming well finish out the day around or above where we are now.

The market is trying to push higher, once again, on the NASDAQ and the S&P.

The Story of the Day?

The story of todays market focus is streaming and subscriptions

There has been a seismic shift in the economy, with this pandemic.

Some of these are temporary, others are going to be the new normal.

We now have a lot of permanent job losses in sectors of the economy that will simply go away or be changed forever.

The big one in streaming is Peloton Interactive, Inc. (PTON). This is NOT an exercise equipment company. It is a subscription company that also sells equipment.

The key to driving their profits is future subscriptions.

Another big one is Zoom Video Communications, Inc. (ZM). This is NOT a video conferencing company, this is a company that found a niche and filled it. They have capitalized on what is now a necessity, and do it better than anyone else on the market.

I believe well be video conferencing just as much as we have been since the first shut down, from now into the future in place of what used to be in-person meetings. And their subscription model is absolutely booming right now.

There is also, of course, Netflix (NFLX). NFLX is showing pricing power, after increasing their subscription costs just recently. Netflix is becoming indispensable, even amongst all their competition. They are still the industry leaders.

But, todays BIG announcement?

Disney Booming Despite Hemorrhaging Money

Disney (DIS) has absolutely exploded to the upside. This is because, even with their parks all closed down and the millions theyre losing there, they are still knocking it out of the park with over 73 million paid subscribers to their Disney+ streaming content platform.

This is well above the estimates they saw for the platform.

This is part of the new paradigm we have in the digital world.

These are the stocks to watch today, folks, and into the future.

Well catch up again Monday morning.

Have a great, safe trading day, and an awesome weekend.


Scott Stewart

Scott Stewart

Editor, Rude Awakening

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