Roku Vs Google Stock: When it seems like more and more tech companies are entering the great streaming race, it can be quite difficult to determine which streamer is the best streamer. This uncertainty applies to the devices we stream on, as well: Google has their Chromecast, Roku has their synonymous streaming boxes, and they face off against all kinds of competition out there.
These tough decisions also have an impact on the stock market, a financial representation of the companies consumers side with for their streaming. Of course, this raises an even greater issue: Forget about the devices, which is best? Roku or Google stock?
The Bull Case For Roku
This streaming war is essentially what lays the groundwork for the bull case for Roku. Cable continues to show incredibly telling signs that they are on the way out, while streaming services prove again and again that they have the real viewership.
According to the most recent Neilsen data on the ten most-watched streaming shows, all ten were streaming originals. Not a single one came from network television.
As long as this sort of viewing activity continues, Roku will continue to go up in value.
Unlike Google, Roku is not particular to any one streamer — because they have virtually no stake in the game, they provide access to everything streamers need. Disney+, Hulu, Netflix, Prime, HBO Max, YouTube TV, Apple TV+, and so on.
Roku isn’t behind any of these names and they make a point to host them all on their streaming boxes, free from the in-fighting that defines all those other devices like Google’s Chromecast and others.
Not just here in America, either — Roku has gone international and has seen great success overseas, which is something that not everyone else can say.
The Bear Case For Roku
As we’ve seen so often, especially as seemingly sturdy companies continue to crumble in the midst of the COVID-19 pandemic, none of these benefits mean anything if there aren’t convincing numbers to back them up in the long run.
It needs to be said that Roku is one of very many streaming devices, and companies like Apple and their Apple TV, Google (GOOG) and their Chromecast, Amazon (AMZN) and their Fire TV Stick, and even Facebook (FB) and their Portal TV make for serious competition for Roku.
While these examples are all partisan streamers with their own services to be partial to, there are also tech companies like Comcast and AT&T (T) that are similarly neutral to Roku in the streaming wars who are developing their own devices, as well. All this makes for the very definition of a saturated market.
Also, while it might be hard to believe because of the sheer amount of viewership and usage they receive, virtually every streamer is swimming in a gigantic pool of debt.
This applies to all sorts of internet companies, but especially streamers — the hope is that, after going hundreds of millions of dollars in debt, the tides will eventually turn five or ten years down the line.
For example, after borrowing more than 16 billion dollars throughout their company’s history, Netflix just recently announced that they no longer needed to borrow in order to operate their day-to-day.
Roku isn’t nearly this deep in the hole, they do have millions in debt just like everyone else in the streaming wars.
Why Buy Google Stock?
Compare these cases to Google: a tried and true name that has become almost universally known, a brand that has managed to become a noun alongside others like Ziploc and Xerox, a company that seems to have a hat in every imaginable ring.
Google is a tech titan, and there’s really no denying it. Not to mention, Google is even bigger than they seem from the outside: They’re a subsidiary of Alphabet Inc, the multinational conglomerate that presides over such subsidiaries as Fitbit, Calico, Sidewalk Labs, and many other (extremely profitable) names at the top of a whole slew of industries.
This kind of instant recognition and diversified domination across the board undoubtedly makes Google a stock that doesn’t require much convincing in order to buy.
They are working on innovative ideas in the worlds of artificial intelligence, voice technology, self-driving and electric vehicles, and, of course, streaming, among many other fields, and they show no signs of disappearing anytime soon.
Even Google Is Not Impenetrable
Naturally, despite all these positive aspects, Google is not perfect: They’re over 20 years old at this point, and while they’ve never stopped innovating, they aren’t exactly as “hot” as they once were.
This is one place where Roku has the upper hand: They’re newer, therefore more exciting. Google also has a lot of big competition that Roku just doesn’t have to deal with.
Apple (AAPL), Facebook (FB), and Amazon (AMZN) are all vying for Google’s spot, and the four are constantly at each other’s throats. Roku gets to sit back and watch it all go down, free from the big tech drama.
Additionally, Google is currently being subjected to all sorts of investigations and crackdowns at the federal level, potentially resulting in major changes for the company down the line. This intense microscope aimed at big tech these days is something else that Roku is virtually free from.
This scrutiny is going to continue for a while with no end in sight, and there’s really no predicting what kind of outcome awaits Google and other tech giants in the very near future.
Roku Vs Google Stock: Conclusion
The choice between Roku stock and Google stock is not an easy one. In fact, choosing one over the other is about as difficult as finding the perfect thing to watch when staring at the home screen of your favorite streaming service.
Both have very appealing positives and very concerning negatives, and both show signs of steady, continued growth in the months and years to come. So, ultimately, what’s the answer? Roku vs Google stock: Who wins?
At the end of the day, Roku’s neutrality in the streaming wars, their newness as a company, and their lone focus on streaming puts them at a greater advantage over Google when evaluating the two with a narrow lens of streaming.
Roku stock is poised to continue rising as more and more pivot from cable to streaming, while Google’s stock will face many obstacles from all sorts of different angles.
Of course, if you’re not convinced that Roku’s stock is the winner, it wouldn’t be a horrible idea to simply invest in both. That’s the kind of diversification that got Google to where they are today. And what makes Google compelling is it is a cash cow that produces enormous amounts of free cash flow monthly to reinvest in projects that are struggling. That’s a capital advantage Roku can only dream about.
The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.