Investors are eyeing two enticing buy-the-dip opportunities in the streaming services sector: Netflix (NASDAQ:NFLX) and Roku (NASDAQ:ROKU). Netflix’s stock price has dropped by 30% post a stock split, while Roku sits 20% below its 52-week high.
Netflix (NFLX) & Roku (ROKU) Overview Reminder
Netflix and Roku operate in the streaming industry but serve different roles. Netflix is a content creator and subscription service, while Roku is a platform for streaming devices. Netflix’s global sales are projected to surpass $50 billion this year, with steady growth anticipated through 2027. Roku’s revenue is expected to rise by 16% in FY26 and another 13% in FY27 to reach $6.22 billion.
Tracking Netflix & Roku’s Expansion
Netflix is expanding globally with new subscription plans and potential acquisitions. Roku’s neutral platform approach has garnered significant market share, with its revenue driven by advertising partnerships. Roku’s EPS estimates have surged post a strong Q4 performance, indicating robust growth potential.
EPS Growth & Revisions
Netflix’s earnings are projected to increase by 20% annually, with recent EPS revisions showing a slight dip. Roku, on the other hand, has witnessed substantial EPS upgrades following stellar Q4 results, with FY26 EPS expected to spike by 244%.
Bottom Line
Long-term investors may find value in Netflix’s stable earnings and reasonable valuation, while Roku’s upward EPS trend suggests short-term potential. Roku’s Zacks Rank #1 (Strong Buy) reflects investor optimism, contrasting Netflix’s Zack Rank #3 (Hold).
