Profit Pregame

Red Flags Spotted: What Your Should Know About Making Money in The Streaming Industry

It was expected – but not this soon.

Streaming platforms are seeing a decline in new subscribers and it’s raising red flags. But there’s one platform that many are wondering where it’s headed next.

Disney+ just fell short of expected growth. Recently, the company announced it now has 103.6 million Disney+ subscribers, far less than the 109 million estimated by analysts. But this was expected given the pandemic sent a surge of new subscribers into the industry as many were stuck at home, needing something to pass the time.

But here’s the catch when it comes to Disney+…

The platform’s average revenue per user was $5.61 per month. Compare that to Netflix’s last quarter – which came in at $14.25 per month and you can see why the red flags are being noticed. Because the truth is, if you’re going to have slumping growth, you want your customers paying as much as possible.

Now, Disney CEO isn’t seeing any need for concern just yet – but for me, I think it’s worth noting. And I’ll definitely be keeping a close eye on this platform, looking for a way to play this streaming giant’s struggle- and when I find one, you’ll be the first to know.

Trading Tip of the Week…

There are many different methods and strategies for investing your wealth.

As traders, we focus primarily on short term trends.

Get in. Make money. Get out. That’s how traders do it.

When you’re looking at the stock market from a short-term perspective, the only thing that influences a stock’s price is the supply and demand curve between buyers and sellers.

The price goes higher in the short term when there are more aggressive buyers. And vice versa, the price goes lower in the short term when there are more aggressive sellers.

Of course, in the long run you want to consider valuations, growth rates, and more. But none of those things matter in the short term.

In the short term, all that matters is the supply/demand curve between buyers and sellers.

We can use this simple truth to our advantage, and move in and out between multiple trades as we stack up the dollars.

The only earnings report that has caught my eye in the near year…

We’ve got more earnings reports incoming.

But don’t bother sifting through all those numbers, there’s only one earnings report that you should be paying attention to this week, and it’s this:

Riot Blockchain Inc. (RIOT).

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, RIOT is your answer.

This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports.

Over the last two quarters, RIOT has outperformed expectation by 175%.

But even more impressive, their last quarter delivered a massive jump.

For instance, in the last quarter, RIOT was expected to post earnings of $0.08 per share, but it reported $0.16 per share. This was s shock seeing that this was a 300% jump from what was expected – and thanks to this performance, it’s caught the eye of plenty investors, mine including.

Now, there’s some big expectations for the blockchain company and all eye will be on them as they take the stage on Monday, May 17 to reveal this quarter’s numbers

And that’s why I plan to keep a close eye on what this stock posts – and if I see a profit opportunity, you’ll be the first one to know.

Speaking of Earnings…

Recent earnings reports from larger companies like Amazon have effectively obscured some of the best profit opportunities being set in motion by earnings season.

My colleague, Money Morning’s Chief Investment Strategist Shah Gilani, has put together a list of stocks that have shattered expectations before…

And according to him, they look primed to do it again.

Everything you need to know about Shah’s “Hyperdrive Watch List” is right here.

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