Friday, May 7

WWE’s subscription service has others following its lead

Investors looking to seize on the rise of over-the-top streaming services and increased cord-cutting should look no further than a few key stocks, CNBC’s Jim Cramer said Friday on “Mad Money.”

While the devices and ecosystems that enable streaming — think Apple, Amazon, Alphabet and Comcast, as well as smaller players like Roku — are worth considering for some exposure, the streaming service providers are the real long-term winners, he said.

That’s because, when it comes to over-the-top entertainment, the hardware is “not where the big money is,” the longtime stock-picker explained.

“In this business, content is king,” he said.

Cramer’s favorite pick in the streaming space might come as a surprise: The Walt Disney Company.

But there are other surprising winners, too, including World Wrestling Entertainment, which has become something of a pioneer in its niche sports-broadcasting industry, the “Mad Money” host said.

“The truth is, tons of companies are getting into the over-the-top space,” Cramer told viewers. “World Wrestling Entertainment has an incredibly successful subscription streaming service and the stock’s given us some gigantic gains, nearly quadrupling over the past 18 months or so. WWE got it right and now other sports organizations are following in their footsteps.”

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