Entertainment World Netflix Roku and Netflix Have Your Living Room on Lock – Motley Fool

Roku and Netflix Have Your Living Room on Lock – Motley Fool

It’s never too late to start accepting Roku (NASDAQ:ROKU) and Netflix (NASDAQ:NFLX) as the entertainment leaders of the new normal. KeyBanc analyst Justin Patterson is initiating coverage of the two streaming video powerhouses with bullish overweight ratings. 

Roku and Netflix have naturally taken different approaches to cashing in on the streaming revolution. Netflix is the undisputed top dog when it comes to streaming services, with nearly 193 million paid memberships worldwide. No one else is even close when it comes to premium subscribers. Roku is the leading hub offering its users use to access thousands of apps — including Netflix. It’s the operating system of choice for smart-television manufacturers, and its rapidly expanding user base is up to 43 million accounts. They’re both winning different games being played in the same arena, and that doesn’t seem close to ending anytime soon.

A couple on a couch watching a mounted TV as they enjoy some popcorn.

Image source: Getty Images.

Making your streams come true

Patterson feels both stocks offer plenty of upside at even today’s heightened share prices. In Roku he sees new ads and the company’s ad-supported channels driving stronger top-line growth than Wall Street’s expecting. He sees fresh catalysts in the form of international expansion and the inevitable recovery of the ad market that has already held up better for the connected-TV industry. His new Street-high price target of $228 implies a gain of 45% from Monday’s