Apple is among 4 stocks to watch as COVID-19 lockdowns boost spending on streaming services. Video streaming services had a great 2020 thanks to the pandemic that kept millions at home watching movies, TV shows, and videos online.
According to a new survey by J.D. Power, the average U.S. viewer in December was paying $47 per month for all their subscriptions compared to $38 in April 2020. This is a substantial jump given that video streaming gained immense popularity during the pandemic.
Also, the report says that viewers added more services to their streaming services bouquet during the pandemic. Many increased their streaming subscription to four services in December 2020 from three in April 2020.
Apple, Inc. launched its [Apple TV+] streaming services last year and has gained immense popularity since then. The company reportedly has more than 30 million TV subscribers. Recently, the company announced that it will also be offering a bundled service, which is likely to further boost its subscriber figures.
The company’s expected earnings growth rate for the current year is 36.3%. The Zacks Consensus Estimate for current-year earnings has improved 11.5% over the past 60 days. Apple sports a Zacks Rank #1 (Strong Buy).
MacDailyNews Note: The other three stocks highlighted by Zacks as streaming plays are Netflix, Amazon (Amazon Prime Video), and Comcast (Peacock).