Roku (NASDAQ: ROKU) started out as a streaming device spin-off of Netflix (NASDAQ: NFLX) in 2008. Since then, both companies have profited from the explosive growth of the streaming market. Roku is now the top streaming device brand in the U.S., while Netflix is the world's largest premium streaming video platform.
Roku and Netflix both experienced robust growth during the pandemic, which drove more people to stay at home and watch more streaming content. However, that growth spurt also set both companies up for tough year-over-year comparisons in a post-pandemic market. Rising interest rates exacerbated that pressure by driving investors away from growth stocks.
That's why Roku and Netflix now trade about 90% and 50%, respectively, below their record highs from 2021. Should investors buy either of these fallen stocks as a long-term play on the streaming media market?
Source Fool.com