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  • Jamie Adams
    • Oct 10, 2019
    • 2 min read

Roku’s Stock Jumps as Netflix Slides

Updated: Oct 11, 2019

Netflix’s Biggest Competitor Isn’t Disney, It’s Roku.




The latest financial news and analysis from MyWallSt. Keep up to date with what’s happening on the stock market right now.

Shares of Roku (NASDAQ: ROKU) shot up an impressive 9% on Wednesday following a report from Macquarie Bank that predicted the company could triple its user base by 2022. This sent Netflix (NASDAQ:NFLX) sliding even further in what has been a costly year.


The same report compared the agnostic streaming platform to Netflix, stating that Roku could experience similar growth overseas. Netflix investors did not react kindly to this comparison it seems, with the company’s stock dropping more than 1%.


Netflix’s Demise Is Roku’s Gain

Netflix’s stock price has taken some major hits in the past year. It dropped more than 29% in the last 3 months alone following its poor showing in it’s July earnings report which outlined a slowdown in growth and a decline in domestic subscribers.


Roku’s stock price, meanwhile, has more than quadrupled in 2019, despite some disappointing recent market movement. 14% increase in the same three month period of Netflix’s plummet. Much like Netflix, Roku can be installed into smart TV’s, and just last month the company struck its first licensing deal in Europe, which marks the beginning of its overseas expansion.


Roku Aren’t The Only Threat

As if things weren’t bad enough for Netflix, it will soon have an entire host of new competitors moving in on its turf. Disney (NYSE:DIS), HBO, Apple(NASDAQ:AAPL), the list goes on, and these streaming wars will be sure to inflict some casualties.


While this competition will likely hurt Netflix, the conflict may prove to be the holy grail for Roku, who will surely profit from the increased number of streaming platforms on demand. With so many services, people will be looking to multi-platform devices such as Roku to keep all of their subscriptions in one place.

War profiteering at its finest!


MyWallSt operates a full disclosure policy. MyWallSt staff currently holds long positions in Apple, Disney, Roku and Netflix.


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