The world of streaming companies and platforms is completely wide, and the best thing about it is that there is enough for everyone. Behind a streaming platform is not only the option of the company that transmits the content, but there are many participants behind all ecosystems and endless ways to participate in this sector, from companies that make ads in a sophisticated and very technological way to companies that are responsible for the analysis of massive data to be able to have effectiveness at the time of transmitting the content. Here I bring you three undervalued streaming stocks that you can consider adding to your portfolio. Let’s see the reasons.
Trade Desk (TDD)
Ever wonder how those ads seem to know exactly what you’re looking for? Meet Trade Desk Inc (NASDAQ:TDD), the brains behind these intelligent online ads. They’re like the ultimate assistants to big brands, guiding you through online ad buys with precision and honesty. What do they focus on? Navigating the world of online TV, online stores and understanding your digital identity.
Last quarter they brought in a staggering $464 million, a stellar 23% growth. The company’s top executive highlighted their prowess in online TV and extracting valuable information from data. Its new creation, “Kokai,” is an amazing method for creating digital ads.
Kokai is like a supercharged ally for advertising experts. Thanks to artificial intelligence, it possesses the magic needed to select the best online ads. And the best part? It can process colossal amounts of data in the blink of an eye, helping brands discover the perfect ads at the right time.
Thinking of expanding your investment horizon? Think Trade Desk alongside streaming giants like Netflix (NASDAQ:NFLX). As the frenzy for online ads increases, especially on streaming platforms, They are tapping into the trend. As the number of people streaming content increases, companies want to show their ads, and Trade Desk knows how to do it.
Roku (ROKU)
Imagine a passport to a world of captivating movies and shows right on your TV. Enter Roku (NASDAQ:ROKU), your ticket to take control of what you watch. No longer at the mercy of network TV choices, they allow you to explore a vast library of options, from exciting shows to gripping movies, all from your comfy couch.
Why invest in Roku? Their latest financial report says it all, a strong 11% year-over-year increase in total revenue, reaching a solid $847 million. That’s growth to be applauded. This increase is a positive sign for both the company and potential investors. Owning a fraction of Roku means sharing in its financial triumphs.
They’ve also got the audience hooked, and it’s not hard to see why. An incredible 73.5 million viewers choose their services, which equates to an entire nation tuning in to their content. In addition, viewership has increased, which means that not only are more people watching them, but they are also enjoying what they have to offer.
“The Roku Channel deserves a prominent place. Imagine a hub packed with fantastic content on a single channel. Its popularity is such that it grabbed 1.1% of all TV viewing in the U.S. in May, an achievement that says it all.
But there’s more. An innovative partnership with Shopify (NYSE:SHOP) has brought shopping to your TV screen. Have you seen something irresistible in an ad? With a touch of the remote control, it’s yours instantly.
PubMatic (PUBM)
Ever wondered how websites and apps are monetized through ads? That’s where PubMatic (NASDAQ:PUBM) comes in: the middleman between businesses and ad space. Imagine you have a fantastic website, but how can you attract businesses to advertise on it and pay for it? PubMatic bridges this gap, intelligently connecting businesses with the best advertising space.
Now, enter the world of streaming. Think about those ads that pop up while watching series and movies online. They are opportunities for businesses to reach you, and that’s where they shine. They help streaming platforms present personalized ads to the right audience, increasing revenue for content creators and streaming services.
Why consider PubMatic for your streaming stock portfolio? For starters, they enjoy healthy growth in connected TV (CTV) advertising, such as watching your favorite online shows on the big screen. Their strong client relationships confirm their prowess in this area.
Financially, in the second quarter of 2023, they grossed $63.3 million, a slight increase over the previous year. They are also developing a new advertising platform, sealing impactful collaborations with prominent brands and media giants. Their influence is seen in managing countless streaming ads in partnership with names such as AMC Networks, FOX, iQIYI, and TiVo.
As of this writing, Gabriel Osorio-Mazzilli did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
