However, Roku stock has outperformed Netflix by a sizable margin, rallying by over 160% this year, compared to Netflix which is up by about 60%. Roku now trades at over 32x trailing Revenue, compared to Netflix which trades at about 12x. However, there are a couple of good reasons for this disparity as investors are likely betting that Roku could fare better in a post Covid world, compared to Netflix. ADVERTISEMENTSee our analysis Roku vs. Netflix: Is ROKU Stock Appropriately Valued Versus NFLX? Roku’s subscribers are also locked-in, in a sense, as they invest upfront in hardware (Roku streaming box or a Roku OS smart TV) potentially making them less inclined to switch.

Source: Forbes December 29, 2020 00:22 UTC