Better Buy: Netflix vs. Roku
Investors have been treated to some huge stock price discounts in 2022, and the streaming video space is no exception. A growth hangover has Wall Street worried that earnings will be pressured over the next year or so as compared to earlier phases of the pandemic.
A temporary slump might set the stage for fantastic returns for investors who are willing to hold on through some turbulence ahead. With that in mind, let's compare two of the industry's leaders, Netflix (NASDAQ: NFLX) and Roku (NASDAQ: ROKU), to see which one looks more attractive today.
Neither business looks like a traditional growth stock right now. Netflix just posted two consecutive quarters of subscriber losses for the first time in its history, and revenue growth trends are falling to below 5%. Roku is seeing faster sales gains but a similarly weak trajectory. Revenue growth fell to 18% last quarter, continuing a four-quarter slide for the business.
Source Fool.com
