By Jaylin

Since 2020 when the coronavirus pandemic hit the world, a big world population mainly watched home entertainment due to lockdown and working from home. The world was already in a revolution of online entertainment. 

Another critical area for entertainment stocks in the future will be the big-name: virtual reality, or VR headsets. Many companies are building out new divisions and the ability to integrate AI and gesture controls. Here’s a list of some entertainment stocks that you may consider buying in 2021.

Netflix Inc.

Since last year, Netflix has reaped big from online entertainment. In 2018, the company announced several vital moves like its acquisition of Millarworld to expand its content library and releasing a sequel to the massively popular Bird Box series starring Sandra Bullock, which saw more than 45 million views in its first week. There’s also plenty of upcoming new original content, including a dark superhero drama starring Cate Blanchett, Eighth Grade, which premiered at Sundance in January.

As this decade started, Netflix was a young, high-growth company with stock prices in the teens. This past year was a case of a company charging high prices to lure in new members, driving revenue growth to triple digits. This will be a “semi-dry summer” for streaming services, but Netflix stock has been on fire.

The company has over 100 million memberships and has long been the main driver of valuation in the sector, thanks to its streaming dominance and massive expansion. With a market cap of about $185 billion, NFLX ranks as the world’s third most valuable stock, behind Apple Inc. and Amazon.com, Inc. Think of Douglas Parker net worth as you think of other industry contributors.

Walt Disney Co.

Disney is a portfolio-busting entertainment company. The company has a whopping $76.7 billion in annual revenue and a market cap of $160 billion. Yet, with a consistent cash-flow machine that produces solid free cash flow, the market seems to be giving the company a pass. For example, analysts at BMO Capital recently increased their price target from $118 to $144 based on the growth outlook for theme parks.

That said, the company’s streaming service ESPN Plus only began in late 2018, and Disney has only said it would be a competitive streaming service in the U.S. Nevertheless, it will likely be worth paying close attention to future news related to ESPN Plus, the ESPN app, and new content partnerships.

Flutter Entertainment

Funded startup Flutter wants to help content producers make extra cash. The San Francisco-based company has invented an automated music publishing technology that helps writers, producers, and record labels license their musical compositions for motion pictures, TV shows, ad campaigns, and more. The company claims the technology “significantly increases revenue” for songwriters and producers while reducing license music costs.

Activision Blizzard

Activision Blizzard’s Call of Duty series will celebrate its 10th year of competitive play at the end of the following calendar year. The videogame maker’s ability to generate income from its console and mobile game franchises over the past ten years gives it a chance to be a market darling in the entertainment stocks you should buy in 2021. 

ATVI’s revenue and income have continued to rise, and its stock price has almost doubled over the past three years. Thanks to all the growth in the online gaming market, investors who missed the earlier run-up have a lot of time to exploit today’s technology.

Comcast Corp

Comcast Corp has been a reliable dividend machine with an 8.3% yield. The question for Comcast investors is whether the company can win distribution rights for NFL games. Rumors of Disney’s purchase of 21st Century Fox’s assets have added fuel to the NFL flames. Should the deal close, expect FOXA to sell NFL rights to Comcast. This is expected to help Comcast gain entry into the streaming wars. This is a stock that should hold up well through a new competition.

Technological change has inspired deep soul-searching in the Entertainment industry. It has also inspired massive innovation that has resulted in increased profits for content creators in some cases. While the lion’s share of entertainment stocks (many of which have an enduring value to the public) remain the same, differentiating factors will drive the next batch of the strongest Entertainment companies.

Some of the most notable breakthroughs of the last decade have been in virtual reality and the virtual economy. Additionally, there is a consensus that each of us is becoming a better and more informed consumer of entertainment content. As a result, the stocks mentioned above will benefit from diversified exposure to the world of entertainment and recreation.

Author: I’m Jaylin: Guest post service planner of Leelija and full time blogger. Favorite things include my camera, traveling, caring my fitness, food and my fashion. Email id: [email protected]