Many digitally enabled businesses saw their share prices skyrocket during the days of the COVID-19 pandemic thanks to strong growth trends. However, these gains didn’t last. And now, investors must assess whether these companies are deserving of their capital.

One such business is starting to register soaring market sentiment. It’s up 51% in the past two years (as of March 18). Is it the best tech stock to buy right now?

Free cash flow growth is a key development to watch

The rise of popular streaming services, most notably Netflix, Walt Disney‘s Disney+ and Hulu, Amazon Prime Video, and Alphabet‘s YouTube, allowed consumers to unbundle and step away from expensive and user-unfriendly cable TV subscriptions.

There might be too many streaming services on the market now. Research from The Motley Fool reveals that 62% of streaming customers think there are too many choices, up from 53% three years before.

This plays directly to Roku‘s (ROKU 2.70%) benefit. Its platform aggregates these streaming services in one place, making it easier for viewers to find their favorite shows, movies, or sporting events to watch. Consequently, Roku has positioned itself to avoid the costly battle between content companies. It wins as streaming continues to take over.

While growth has slowed compared to earlier in the decade, the business is still putting up impressive gains. Revenue increased 15% year over year in 2025. Streaming hours also jumped 15%. And Roku expects to reach 100 million households this year.

Free cash flow (FCF) might be the most important metric investors should watch. After producing $484 million in free cash flow last year, management believes this figure will total more than $1 billion in 2028. That translates to a fantastic 27% annualized gain.

Today’s Change

(-2.70%) $-2.59

Current Price

$93.27

A critical risk factor might be priced in

The biggest threat Roku faces comes from competitive forces. It competes directly with powerful tech titans. Apple, Alphabet, and Amazon all operate their own streaming platforms. What’s more, they also sell connected TV devices that enable households to consolidate their viewing experience. These businesses have incredible financial resources and experience in digital advertising.

For what it’s worth, Roku has leading market share in North America in terms of hours streamed. It has been able to succeed in the face of this persistent risk factor.

The market might be pricing in that uncertainty, though. Roku shares trade 80% below their peak, and they can be purchased at a reasonable price-to-sales ratio of 3.

While I wouldn’t go so far as to say that this is the best tech stock to buy right now, I think investors should consider adding Roku to their portfolios while it’s on the dip.