Trading Nation

Beyond Netflix: These two stocks could be best streaming plays, traders say

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Netflix falls after earnings—Here are the names that could challenge it

The stay-at-home trade is still going strong, and it's not just Netflix catching investors' attention.

Gina Sanchez, CEO of Chantico Global, says a different streaming stock looks best positioned after Netflix offered weak guidance for subscriber growth last week.

"In terms of growth and where you would put your money, now you have to go with some of the newer entrants and other newer entrants and of the newer entrants," Sanchez told CNBC's "Trading Nation" on Friday. "I like Disney Plus." 

Disney, which launched its streaming platform in November, reported more than 54 million subscribers at the beginning of June. 

"It has the most solid content. It's content that's extremely valuable and it's about to fall off all of the [other] platforms in September. So I think that that as they consolidate their position as a strong content provider, that's going to drive significant growth here in the near term," said Sanchez.

Craig Johnson, chief market technician at Piper Sandler, isn't counting Netflix out.

"We'd definitely be a buyer [of Netflix]," Sandler said during the same "Trading Nation" segment. "I'll observe my children. I come home, they've got Netflix on multiple times a week. I look at this chart, it looks like to me just to be a little 7% correction within the context of a longer uptrend."

Netflix was down 7% on Friday after reporting weaker-than-anticipated quarterly profit and subscriber projections. It has fallen 14% from a mid-July high. 

Johnson also sees another streaming stock that could be on the upswing. 

"I'd also place a bet looking at Roku. Here's a stock that has reversed a longer term downward trending price channel. I like those kind of downtrend reversals. Something is clearly more positive there, and we'd also be a buyer of that stock here on that downtrend reversal," said Johnson.

Roku has rallied more than 150% since a March low. It is up 11% this year. 

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