24/7 Wall Street
02 Jun 2026, 12:43 UTC · 1h ago
Forget Roku: This Stock Is a Far Better Value for Long-Term Investors
24/7 Wall Street
02 Jun 2026, 12:43 UTC · 1h ago
Story key points
5 claims · impact-rated
Disney's entertainment SVOD operating income grew 88% to $582 million, achieving a 10.6% operating margin for the first time. — Direct evidence of the 'streaming inflection' point, proving the business model is shifting from losses to sustainable profitability.
+0.60Roku's Devices segment is in structural decline (-16% YoY) with gross margins in the high negative 20% range. — Indicates a fundamental failure in a core business unit and significant margin pressure that contradicts the stock's high valuation.
-0.50Disney raised its FY2026 adjusted EPS growth guidance to approximately 16% and projected double-digit growth for FY2027. — Positive forward-looking guidance generally supports a higher stock price and investor confidence in long-term growth.
+0.40Continue reading
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Roku management flagged tightening memory chip supply as a margin headwind for the second half of 2026. — Creates a specific, time-bound risk for hardware costs that could further erode already negative margins.
-0.30Eight Disney directors engaged in coordinated open-market stock purchases at $96.96 on March 31. — Strong insider buying typically signals that leadership believes the stock is undervalued.
+0.30Ticker attribution
Model heads
Highlighted for streaming profitability inflection, diversified moat, and attractive valuation.
Described as a crowded trade with structural decline in devices and bloated valuation.
Described as the grocery story everyone wants to own right now.
Reported strong revenue growth of 17.6% year-over-year.
Mentioned as a competitor creating pressure for Roku's advertising business.
Mentioned as a competitor creating pressure for Roku's advertising business.
[mutual] Roku competes against Amazon in the connected TV advertising business.
[mutual] Roku competes against Google in the connected TV advertising business.
[mutual] Both companies are mentioned as competing for the streaming and connected TV narrative.
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Market reaction
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