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Stock Market Analysis

Can Roku Become A Bigger Company Than Netflix?

Following speculation of talks to get HBO Max on its streaming service, Roku managed to hit all-time highs.

All-time highs are a real double-edged sword for long-term investors. On the one hand, you want to see the stock you like doing well, but on the other, a dip represents a great discount opportunity. 

That’s certainly how many of us felt here about Roku hitting a fresh all-time high on Thursday, and boy, what a way to hit it. 

The brand-agnostic streaming platform soared after a report surfaced that it’s close to a deal with AT&T to bring its HBO Max channel to Roku’s platform. HBO Max has so-far been met with largely positive feedback, though this was probably a given when you look at the pedigree of television available on it: ‘The Sopranos’, ‘Westworld’, Seasons 1-5 of ‘Game of Thrones’ — oh, they have all GOT episodes, I’m just refusing to acknowledge anything post-season 5!


*ahem* Moving swiftly on; should Roku secure yet another streaming scalp, there can be no denying that it is building an impressive collection of content amid a golden era for television.

Roku’s top competitors are no problem

Amazon Firestick, Apple TV, and Google’s Chromecast are competition, no doubt, but have you ever wondered how many people watch TV? 

Lots!

In the U.S. alone, there were an estimated 119.9 million TV households in 2019, spending an average of 238 minutes (3h 58min) daily watching TV. Meanwhile, the global video streaming market is expected to be worth $687.2 billion by 2024, meaning a CAGR of 18.8% from 2019–2024.

Behind all of this growth is the rising tide of Disney+, Netflix, HBO Max — the list goes on and on. And guess who can tie them all up in a neat little package without any conflict of interest between the big companies like Apple or Amazon? 

Roku!

Not only that, but it has made huge leaps in recent years into Europe and Latin America, where it is in its early growth stages as it seeks to take advantage of international opportunities. 

Streaming is immune to almost every economic outcome:

  • Its cheaper to stream than use a traditional cable in a downturn. 
  • We know that it thrives during a pandemic.
  • Roku builds software into smart TVs now, diversifying its service offering and making it a necessity in cases where people want to get the most out of their hardware. 

And don’t forget, Roku has a first-mover advantage and it’s very good at what it does — its Net Promoter Score, a customer loyalty metric, is 71, compared to the industry average for Consumer Brands / Entertainment, which is 19.

Big Tech might have all the money and power in the world, but it will rarely beat the power of a solid pure-play like Roku!

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MyWallSt operates a full disclosure policy. MyWallSt staff currently hold long positions in Netflix. Read our full disclosure policy here.

Jamie Adams
Jamie Adams
Jamie is the Content Editor here at MyWallSt. His favorite stock is Apple, which is also the first stock he ever bought. Jamie is not only a big fan of its products, but he believes that the tech giant has a whole lot more to give the world, and hasn't even scraped the surface of its potential.