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Best Long-Term Streaming TV Stock to Buy: Roku vs. Netflix

Benjamin Rains
·3-min read

The two big pure-play stocks in the streaming TV industry are Roku ROKU and Netflix NFLX. On today’s episode of Full Court Finance at Zacks, we dive into the streaming TV world as we approach a full year of empty movie theaters and a lack of most out-of-home entertainment to see which of the two stocks, ROKU vs. NFLX, might be the better long-term buy.

The market got off to a hot start on the first day of March, as tech stocks bounced back on Monday, with Zoom Video ZM, Tesla TSLA, Apple AAPL, and others helping lead the charge.

The jump comes after stocks tumbled in the last week of February as Wall Street started to bet on the possibility of inflation amid increased government spending and the likelihood that the economy roars back once the vaccine is widely distributed.

The recent pullback was healthy for a market that had continued to rip higher in 2021, with the S&P 500 and the Nasdaq both closing at new highs on February 12. The tech selling sent many stocks into overbought territory and set up some deals that were too good to pass up for some investors.

This brings us to a growth industry within tech and media that’s attracted some of the biggest companies in the world. Streaming TV is the future of entertainment, even when things get back closer to normal.

For instance, Disney DIS stock has soared even with its parks and theatrical businesses hit hard by the coronavirus, as its streaming TV service has added nearly 100 million subscriptions in slightly over a year to crush its previous guidance. Meanwhile, Apple, Amazon AMZN, Comcast CMCSA, AT&T T, and other giants are all fighting for their piece of the pie.

Netflix is also coming off a blockbuster year in 2020 that saw it pull in a record 37 million paid subscribers to help it blow away its average of about 23 million over the last five years. Despite its showing, Netflix stock has lagged far behind the only other true pure-play streaming TV stock, Roku over the last several years.

+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities

In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.

Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.

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AT&T Inc. (T) : Free Stock Analysis Report
Comcast Corporation (CMCSA) : Free Stock Analysis Report, Inc. (AMZN) : Free Stock Analysis Report
The Walt Disney Company (DIS) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Roku, Inc. (ROKU) : Free Stock Analysis Report
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Zacks Investment Research