1 Streaming Stock to Buy Hand Over Fist, and 1 to Avoid

Core Viewpoint - The streaming industry is experiencing growth, with significant potential for expansion as it captures less than 50% of television viewing time in markets like the U.S. [1] - Roku is identified as a long-term investment opportunity, while fuboTV is considered less attractive due to various challenges [1] Group 1: Roku - Roku has not performed well recently, facing a slowdown in the advertising market and remaining unprofitable, with stagnant average revenue per user (ARPU) at $40.68 in Q2 [2][3] - Despite competition, Roku leads the North American connected TV market with 83.6 million households, a 14% year-over-year increase [2] - Roku's strategy focuses on scaling its user base internationally before monetization, which is expected to improve financial results in the future [3][4] - The company's platform segment is profitable on an operating basis, while its device business operates at a loss [3] - Roku's net loss per share improved to $0.24 in Q2 from $0.76 in the previous year, indicating progress towards profitability [4] Group 2: fuboTV - fuboTV focuses on live sports but faces challenges such as seasonal customer behavior, leading to inconsistent revenue growth [5] - The company's revenue increased by 25% year-over-year to $391 million in Q2, but subscriber-related expenses rose by 20.5% to $326.5 million, consuming about 83.5% of revenue [6] - Subscriber growth has slowed, with 1.5 million North American subscribers in Q2, a 24.2% year-over-year increase, compared to higher growth rates in the previous year [7] - fuboTV faces competition from larger providers and is involved in an antitrust legal battle that could disrupt its growth [7][8]