Hulu Stock Price

Hulu's growth story is impressive. The number of paying subscribers for the video streaming service knows only one direction - to the upside. All implications clearly indicate a strong buy. But how to buy Hulu stock, does Hulu have an IPO soon, and will it be the next Netflix? Let's discover the potential, learn more about the streaming industry, and let's answer the question of how to buy Hulu stock.

If you want to pick stocks like Hulu at the right time, then check out our Motley Fool Stock Advisor Review.

What is Hulu?

Hulu is a fast-growing streaming- and live-TV service controlled by Disney. With Hulu, you can watch thousands of shows and movies. Their plans start at $5.99 per month. A free trial is also available.

How many subscribers are on Hulu?

Back in Q4 2010, Hulu had 0.3 Million subscribers. In Q4 2012, they already had 10 times more - 3 Million subscribers. And then, just 7 years later, Hulu already had 30.4 million subscribers.

How much is Hulu Worth?

The number of subscribers is the best possible key statistic to evaluate it. Netflix had 167 million subscribers when Hulu had 30.4 million. If we assume that Hulu makes about the same money per subscriber as Netflix does, then the calculation based on Netflix stock price is $340/167mn*30.4mn=$61.89. This is a simple calculation but gives you a rough estimation. Hulu stock price would be worth $62 per stock as of Q4 2019.

Who is worth more Hulu or Netflix?

At the moment, Netflix is the market leader. But Disney is now the majority owner of Hulu, and in January 2020, they decided to integrate Hulu services fully. And that clearly shows where the potential comes from.

Is Hulu publicly traded?

Hulu alone is not publicly traded. But Disney is the controlling owner of Hulu, and profits made by Hulu go straight into their balance sheets. If you like to buy Hulu stocks, then you can do this by buying Disney stocks.

Who owns Hulu stock?

Disney owns the majority of Hulu. Therefore investors can participate in Hulu's growth story by buying Disney stocks. The more the streaming service Hulu grows, the better for their stocks. Comcast is the only remaining co-owner of Comcast right now.

Does Hulu have an IPO?

There where IPO planned in the past when various stakeholders controlled the company. Currently, there is no Hulu IPO planned by the majority owner Disney. Things could change in the future if Disney attempts to raise capital.

What is the ticker symbol for Hulu?

Hulu doesn't have a ticker symbol, but investors can buy Disney stocks instead since they are the majority owner of Hulu. The ticker symbol is NYSE:DIS.

The Future of Hulu

Disney decided to integrate Hulu fully into its existing management model and service landscape. That's a clear o indication that an IPO is not planned at the moment. Quite the opposite, they aim to make Hulu the main driver for its stock price.

Therefore, they now have two primary streaming services, Disney+, and Hulu. While Disney+ is just another video streaming service, Hulu has much more to offer.

  1. Hulu streaming service with ads $5.99/month
  2. Hulu video on demand without ads $11.99/month
  3. Live TV service + streaming $54.99/month with ads
  4. Live TV service + streaming without ads $60.99/month

The option with ad-placements is the main differentiator to their competitors. Subscribers can choose to pay a lower monthly fee. And that's where they can make a lot of extra cash, while Netflix cant.

Imagine what would happen if Netflix decides to start a subscription with ads? That would be kind of a red flag since they are already listed on a stock exchange and have >160 million subscribers. The impact would be unpredictable.

For Hulu, it is different. That's their primary subscription model. If you take a closer look at Hulu's website, then you recognize that the cheapest plans are promoted on the homepage. Only in the drop-down list, you can see the available add-on called "no ads."

But what does that mean to Hulu's future? Well, that's simple, the chances are that Hulu will make much more money per subscribers by integrating ads in the video streaming, then they would by just selling ads-free subscriptions.

Competitors

Netflix

The main competitor to Hulu is Netflix. They have about 170 million subscribers right now and are available to subscribers in more than 190 countries worldwide. When it comes to video streaming, then Netflix is #1. They were at the right time at the right place and grew exponentially while the video rental store still thought that streaming would never be the future.

So, Netflix the same for streaming, which Amazon is for e-commerce. Netflix offers three plans and raised the subscription prices only once so far.

The streaming tiers are:

  1. Basic: $8.99/month, one device at a time with a max resolution of 480p
  2. Standard: $12.99/month, two devices at a time with a max resolution of 1080p (HD)
  3. Premium: $15.99/month, up to 4 devices at a time in Ultra HD resolution

Amazon Prime Video

Like Apple and AT&T, also Amazon invested billions of dollars in coming up with its own streaming network. Amazon's leading place to make money in e-commerce. But there is a massive potential in the streaming business, so it is not surprising that Amazon came up with its streaming called Amazon Prime Video.

Subscribers can watch blockbusters and top-notch Amazon original shows for $8.99 per month in the U.S. if a dedicated streaming subscription is chosen.

The main benefit comes to already existing Amazon clients that use Amazon Prime. That's because Amazon Prime Video is part of their premium package for $199 per year. This includes the premium shipping service and Amazon Prime Video.

Disney+

Disney+ is not really a competitor to Hulu because at Disney+; you can watch only Disney movies, shows, and seasons. Therefore there are no overlap offerings between Disney+ and Hulu. However, Disney+ is part of Disney, as Hulu is. That means that they attack both streaming services, Netflix, and Amazon Prime Video with their inhouse services Disney+ and Hulu.

Besides the income from Hulu, also Disney+ adds to their balance sheets and profitability.

The Dinsey+ pricing model is straightforward. You can choose between a yearly streaming subscription for $70 and a month-by-month subscription for $7. That's it; no other tiers are available.

If you combine the cheapest Hulu package for $5.99/month and the yearly Disney+ subscription, which results in $5.83 per month, then you have $11.82 per month, which is still below the Netflix HD subscription costs.

How to buy Hulu Stock?

Investors can participate in Hulu's growth story by buying Disney stock. While there is no ticker symbol for Hulu, there is a ticker symbol for Disney: NYSE:DIS.

Here is a little guide on how to buy Hulu stock:

First, choose an online Broker like Webull, TD Ameritrade, or Tradestation. All of them offer commission-free trading within the United States. So you only pay the price for the Hulu stock or respective Disney stock.

Once you opened your trading platform, look for the New York Stock Exchange-listed company Disney with the stock ticker symbol DIS.

Remember, if you decide to participate in a growth story, then it is always in the long term. Day trading Hulu stock or Disney shares does not correlate with the expected growth because when day trading, fundamental aspects don't matter at all.

Let's see if Disney decides in the future to give free Hulu stocks to their shareholders, or if there will be a separated Hulu stock price. For now, the Hulu stock price has to be replaced by the Disney stock price. Investors who want to ensure a stake in Hulu have to wait for a potential IPO.

Conclusion

On-demand video streaming services are the future of watching movies, and Hulu is in an excellent position to become the main competitor to Netflix. With Disney's deep pockets, excellent marketing, and unlimited potential for ad-income in the lower tier subscriptions, Hulu is worth buying it.

Updated: April 18, 2020
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