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3 Streaming Service Stocks You Should Sell in July Before They Crash

3 Streaming Service Stocks You Should Sell in July Before They Crash
3 Streaming Service Stocks You Should Sell in July Before They Crash

These are three streaming service stocks that will be sold in July.

Streaming services are integrated into our daily lives, whether it’s media, music, entertainment, or more. As the Internet has become more accessible and its capabilities have improved, the market for streaming services has grown exponentially.

By 2023, nearly a quarter of the world’s population will use streaming services. In the United States, 99% of all households are subscribed to at least one or more paid streaming services.

However, as the cost of living increases in all areas of life, these streaming services seem to be the first to be cut from people’s bills. In 2023, 45% of Americans canceled their streaming subscription because they were simply too expensive.

That’s why investors should be cautious about streaming service stocks right now. In fact, investors should sell the following three streaming service stocks before they crash and they lose all their money.

Spotify (SPOT)

Spotify (SPOT) app on the screen of the iPhone 13 Pro smartphone on a green background.

Source: Diego Thomazini / Shutterstock.com

For years, Spotify (NYSE:JOB) dominates the music streaming service and has more than 615 million active listeners worldwide. Of the 615 million, about 240 are monthly subscribers and more than 100 are from the US.

The majority of Spotify’s revenue is generated through its premium service, which charges a monthly subscription fee while also making large loyalty payments to music labels and artists.

Although Spotify stock has risen steadily and consistently over the past few years, the company’s future does not look promising. As of this month, the Swedish music streaming service has increased monthly fees for individual premium users by one dollar.

For users of the Duo plan, the cost increase was $2 and for users of the Family plan, it was $3. In addition to the price increase, the company’s CEO, Daniel Ek, recently sold $250 million worth of Spotify shares. If people find the new premium plans too expensive, Spotify’s smooth growth will end. Investors should sell before that happens.

Disney (DIS)

Disney logo on a store front. DIS warehouse.

Source: chrisdorney / Shutterstock

Disney (NYSE:DIS) is one of the largest multimedia and streaming service companies in the entertainment industry. Its history stretches back more than 100 years when it was founded by Walt Disney in Los Angeles, California.

Since its founding, the entertainment giant has expanded its business into various areas, including television, streaming media, consumer products, theme parks and publishing.

Disney is investing aggressively in other areas of its business. Over the next decade, Disney plans to invest more than $60 billion in its experiences business, with half of the money going to theme parks and the other half to its cruise lines.

While Disney is thriving with its theme park business, its streaming platform Disney+ is burning money. Since 2019, the streaming platform has cost Disney more than $11 billion in operating losses and has yet to turn a profit.

2024 could be another year in which Disney+ does not make a profit, or if it does, it will be at the very end of the year. Investors should not get their hopes up too much about Disney for a while and sell their positions.

Paramount Global (PARA)

In this photo illustration, the Paramount Global (PARA) logo is displayed on a smartphone screen

Source: rafapress / Shutterstock.com

Outstanding Generally (NASDAQ:PARA) is an American mass media and streaming service company. Compared to its competitors such as Netflix, Disney and Warner Bros, Paramount is a relatively new company in the industry.

The company was formed from the merger of Viacom and CBS. Paramount Global will celebrate its fifth anniversary in December 2024.

However, the stock is in serious trouble. Since the beginning of the year, the value has fallen by around 22% and in the last 12 months by around 31%.

Last year, the company made a loss of $1.6 billion in the streaming sector. The American streaming service company has no clear catalyst that will ensure stable revenues in the long term.

In addition, Warren Buffett publicly announced that his company Berkshire Hathaway sold its entire stake in Paramount Global and openly admitted that he lost money on these investments. Before it is too late, investors should sell their holdings in Paramount Global.

As of the publication date, Andy Kim had no position (either directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s disclosure policies.

At the time of publication, the responsible editor held a LONG position in (JOB).

Andy is a self-taught investor interested in ESG and socially responsible investing. He has managed the portfolio of a small mutual fund and started his own research firm. Through his freelance work on InvestorPlace, he hopes to find and share promising investments in companies with the goal of making the world a better place.

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