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Sept. 27, 2022, 4:01 p.m. EDT

Netflix Stock or Roku Stock: Analysis

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Sep 27, 2022 (PressReach.com via COMTEX) -- Netflix stock was trading at $223.30 as of 12:57 PM

Streaming video stocks have been discounted heavily in 2022. Wall Street is anxious about profit pressure over the coming year due to a growth hangover. A brief dip could lead to great returns for those willing to ride through the upheaval. Let’s compare Netflix stock /zigman2/quotes/202353025/composite NFLX -1.53% and Roku stock /zigman2/quotes/205087179/composite ROKU -3.87% to see which appears better today.

Neither company appears like a growth stock . Netflix just recorded two straight quarters of subscriber declines , and revenue growth is below 5%. Roku’s sales growth is faster but weaker. Last quarter’s 18% revenue growth continued the company’s four-quarter slump.

Netflix’s earnings are up attributable to scale economies. The corporation remains profitable and generates cash. Roku’s operating cash flow has become negative in the last six months. These issues won’t vanish immediately. In late July, management predicted adjusted third-quarter losses. Roku doesn’t anticipate its streaming video devices or advertising services rebounding quickly. In July, officials claimed less consumer discretionary spending was hurting TV and player sales.

Netflix Stock Slightly Drops As Reports Emerge Will Pay Comedy Specials While Cutting Costs

Netflix /zigman2/quotes/202353025/composite NFLX -1.53% has various reasons to favor a resurgence, including its lack of hardware exposure. According to management, the current quarter should see a return to subscriber gains. Roku’s management lowered its 2022 projection due to short-term concerns. Netflix’s advertising, gaming, and password restrictions are all promising growth areas. Most Wall Street analysts expect Netflix’s yearly sales to rise by 7% in 2022, below the 20% it targeted in recent years but still strong.

Given Netflix stock’s improved outlook , both streaming video companies are valued similarly. Netflix’s P/S ratio is 3.5, while Roku’s is 3.1. Both stocks are down 50% in 2022. These equities’ gloomy pricing indicates investors should experience great returns. Netflix /zigman2/quotes/202353025/composite NFLX -1.53% and Roku /zigman2/quotes/205087179/composite ROKU -3.87% are leading platforms with tremendous prospects for expansion in the streaming video sector.

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Author: Jowi Kwasu
Market Jar Media Inc.
info@marketjar.com
#170 - 422 Richards Street
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V6B 2Z4
1.800.340.9767

COMTEX_415413680/2810/2022-09-27T16:01:21

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/zigman2/quotes/202353025/composite
US : U.S.: Nasdaq
$ 281.17
-4.37 -1.53%
Volume: 4.71M
Nov. 28, 2022 4:00p
P/E Ratio
25.18
Dividend Yield
N/A
Market Cap
$127.07 billion
Rev. per Employee
$2.79M
loading...
/zigman2/quotes/205087179/composite
US : U.S.: Nasdaq
$ 53.91
-2.17 -3.87%
Volume: 4.29M
Nov. 28, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$7.81 billion
Rev. per Employee
$1.04M
loading...
/zigman2/quotes/202353025/composite
US : U.S.: Nasdaq
$ 281.17
-4.37 -1.53%
Volume: 4.71M
Nov. 28, 2022 4:00p
P/E Ratio
25.18
Dividend Yield
N/A
Market Cap
$127.07 billion
Rev. per Employee
$2.79M
loading...
/zigman2/quotes/202353025/composite
US : U.S.: Nasdaq
$ 281.17
-4.37 -1.53%
Volume: 4.71M
Nov. 28, 2022 4:00p
P/E Ratio
25.18
Dividend Yield
N/A
Market Cap
$127.07 billion
Rev. per Employee
$2.79M
loading...
/zigman2/quotes/205087179/composite
US : U.S.: Nasdaq
$ 53.91
-2.17 -3.87%
Volume: 4.29M
Nov. 28, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$7.81 billion
Rev. per Employee
$1.04M
loading...

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