3 stocks are about to be realized In the next decade, after the huge growth dropped by more than 20% in the past two months, the stock market officially entered the bear market area. This is not the time to panic, as the bear market has happened countless times in the past few decades. However, this is a great opportunity to re-evaluate your stock and consider which companies you want to own in the next 10 years.
One area that I'm particularly excited about over the next decade is the stocks related to the explosive demand for streaming content. We've seen huge growth in video streaming, but there is still a lot of untapped potential, especially in other markets, such as audio and gaming, where streaming is becoming more mainstream.
If you are looking for growth stocks to sell during this downturn, consider using Spotify (NYSE: SPOT), Roku (NASDAQ: ROKU), and Huya (NYSE: HUYA).
The share price of Junlin World Audio Stream Spotify has been underperforming since it debuted in 2018, but the latest running results indicate that the stock may become a big winner in the long run.
In the last quarter, the growth of monthly active users accelerated for three consecutive quarters, reaching a total of 271 million, and Spotify is still growing rapidly. Driven by strong growth in paid subscriptions and ad-supported listeners, revenue in the fourth quarter increased by 24% year-on-year.
Spotify is known for its music apps, and in addition to creating playlists based on each user's preferences, Spotify also has a competitive advantage in terms of recommendation and discovery technology. But recently, management sees podcasts as the next huge growth opportunity. The future of broadcasting is coming online, which is why Spotify bought Gimlet, Anchor and Parcast last year to position itself for growth in this fast-growing market.
More than 16% of Spotify users participate in podcast content, but this situation will increase significantly. The company reported last quarter that podcast consumption time increased by 200% year-on-year, and interaction with podcasts is encouraging ad-supported listeners to try paid subscriptions.
Spotify also recently announced the acquisition of The Ringer, a leader in sports, entertainment and pop culture content. The transaction puts Spotify ahead of the audio streaming market, and the latest data shows that Spotify has made good progress.
Management sees huge growth potential, which is why they have declared 2020 as the “Year of Investment”. This means investors should not expect to see Spotify generate significant profits this year, but revenues will continue to climb. With the development of services to 1 billion users, it is only a matter of time before the market pushes the growth stock higher.
Roku: Growth of Pi-Band Video Streaming
Over the past decade, streaming has made great strides. There are many companies competing in this market, including Disney, Viacom CBS, HBO, etc. But to some extent, Roku may be the best streaming stock, because it gives you a broad understanding of the growth that is happening in the streaming space.
Roku's TV operating system is different, allowing users to see what is available in various services. In 2019, one third of smart TVs sold in the United States will be powered by Roku.
Given this flexible position, the company is experiencing explosive growth. Revenue increased by 52% year-on-year in 2019, Roku's active accounts increased by 36% at the end of the year to 36.9 million, and the total duration of streaming media increased by 68% to 40.3 billion.
This momentum puts Roku in a good position to increase advertising revenue, which is how the company monetizes its platform. Over the past decade, the shift from traditional advertising to online search has driven Alphabet. With the shift of online TV advertising, a similar trend has emerged in streaming media. This will help Roku to maintain rapid growth in the coming years.
in China ’s top game streaming platform, the streaming industry. Another attractive stock is China ’s leader in live game streaming Huya. Last year, the video game industry continued to grow, with a global value of about $ 150 billion. But according to SuperData, the industry's video content (viewers watch games on Chinese sites such as Amazon's Twitch or Huya) has grown faster than the entire industry and is already a $ 6.5 billion market.
SuperData estimates that 944 million people worldwide watch game streaming content, while China has 600 million gamers, which put Huya in a leading position in the huge addressable market. Millions of people listen to these game streaming sites, watch their favorite characters play games or watch live esports games.
Huya makes money by reducing the amount of money viewers use to support their favorite ribbons. This generates approximately 95% of revenue.
All popular game streaming sites in the United States are owned by large tech companies, so Huya is one of the few pure investor stocks. In the fourth quarter, revenue increased 64% year-on-year to $ 350 million. It now has 150 million active users per month, an increase of 28.8% over the same period last year.
In the two years since its listing, the stock has experienced significant fluctuations, mainly due to concerns about the Chinese economy and the outbreak of COVID-19. But this is an ideal time to take advantage of the sluggish prices and establish a position in this company that is entering the fast-growing field of the gaming industry.
news reference: https://www.nasdaq.com/articles/3-stocks-poised-for-huge-growth-over-the-next-decade-2020-03-21