1 Hidden Catalyst That Could Ignite BCE Stock

BCE (TSX:BCE) stock has been cutting and cutting some more, but it needs to add to its already strong arsenal to bring back investors.

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BCE (TSX:BCE) continues to have pressure from all fronts. Whether its government regulations or mergers amongst its peers, or simple performance, BCE stock has seen shares tumble further this year.

Investors have, therefore, been quite focused on the Dividend Aristocrat when it comes to its future growth potential—and rightly so. The company has seen revenue and earnings shrink after pandemic highs. Most recently, revenue was up just 2.1% for the full year, with net earnings down to $2.3 billion from $2.9 billion. 

That might lead many to question the safety of its future dividend increases. However, the company may have overlooked a key catalyst that could bring BCE stock back from the ashes.


There really are not any Canadian streaming companies that offer as much success as Crave has. It’s been a bright spot as the company continues to cut employees, fight infrastructure regulations, and battle mergers between large telecom companies.

And yet, the company still has Crave, which has been a major player in Canadian streaming content. In fact, its only competition in the company comes down mainly to the big players, such as Disney, Netflix and Amazon.

Crave has secured exclusive streaming rights for popular shows and movies, and has also moved into original content production as well. And yet, if you compare the company with these other big streaming companies, it really has so much more room to grow.

Expanding several areas

Instead of BCE stock battling back government regulations, closing stations, and attempting to stop acquisitions, it’s time to focus inward. It must focus on the best part of its portfolio at this moment. That means enhancing Crave.

The company may have a few original content and exclusive deals, but this should expand even further. A key area could be through documentaries, as Netflix has found. This is an area where the company lacks content and has proven to be a low-cost and effective method of creating addictive content.

BCE stock could also attract more subscribers through bundles, including Crave with wireless plans at a discounted rate.

Furthermore, BCE stock may want to start considering what other streaming services have done with ads. Using data analytics, the company could keep users engaged and potentially lead them towards hidden gems on the platform. Furthermore, it could allow for targeted advertising from this data, generating new revenue streams.

Finally, BCE stock is a media company. Therefore, it also offers far more live options than some of these other companies that have to make partnerships and deals. This would help bring in subscribers as well, perhaps through a tiered approach as other companies have done.

Bottom line

The companies that do well aren’t those that focus on bringing other companies down. They are the companies that focus on bringing more to their customers. BCE stock has seen this happen with its peers, and it’s now time to take advantage of the network it already has. And frankly, Crave could be just the item to bring its subscribers and investors back on board.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Amazon, Netflix, and Walt Disney. The Motley Fool has a disclosure policy.

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