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3 Reasons to Buy Roku Before Thursday's Close, 1 Reason to Sell

Key Points

  • Roku reports its second-quarter numbers after Thursday's market close.

  • A clear path to profitability, improving guidance, and rising partnership prospects can make it a strong performance.

  • Roku stock has still initially stumbled after posting financial results -- more often than not -- over the past year.

A lot of companies have a lot riding on impressing the market this earnings season. Roku (NASDAQ: ROKU) certainly has a lot to gain -- or lose -- depending on how its fresh financials play out. Shares of the TV video-streaming pioneer have more than doubled the market's return in 2025, and are up a hearty 53% over the past year.

Roku reports its second-quarter results on Thursday afternoon, shortly after the market close. Roku's guidance for the period calls for a net loss of $25 million, improving on the $34 million deficit it posted a year earlier. It sees revenue increasing 10.5% to $1.07 billion. Let's go over a few of the reasons why the shares can move higher on Friday following the telltale earnings release. Let's close with one reason why the reaction may not be so rosy.

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1. Profitability can come sooner than you think

A big knock on Roku has been its lack of profitability. It generated positive net income for a six-quarter stretch from the second half of 2020 to all of 2021, but it has remained in the red outside of that run. It's worth noting that Roku hit an all-time high during that span of time. The stock would have to be a five-bagger from today's starting line to get back there. What if Roku is closer to becoming profitable sooner rather than later?

Roku's guidance three months ago was encouraging. The niche leader sees a loss of $30 million for all of 2025. It already scored a net loss of $27 million for the first quarter. Its outlook calls for a $25 million deficit for the three months that ended in June. If it's still modeling a $30 million hole on the bottom line for the entire year, that would translate into a profit of $22 million for the next two quarters combined.

Will its new guidance show positive net income for the current quarter or will the burden to dig Roku out of the red rest solely on its fourth-quarter performance? What if profitability is already here? Back in February it was calling for a $40 million deficit for both the first quarter and all of 2025. It improved on both of those forecasts when it announced results at the start of May. After 13 consecutive quarters of losses, the bottom-line turnaround could be here.

Someone channel surfing from the couch.

Image source: Getty Images.

2. Engagement could keep rising

Roku closed the curtain on two of its most popular metrics at the end of last year. It is no longer reporting the number of users on its free operating system. The move also meant the end to putting out average revenue per user (ARPU), as it would be easy math to calculate its audience if you divide platform revenue by ARPU. It's not just Roku doing this. The country's leading premium video service is also no longer putting out its subscriber count.

Thankfully Roku is still offering up the time that folks are spent streaming through the platform. Viewers spent 35.8 billion hours cradling the Roku remote during the second quarter, a nearly 17% year-over-year jump. Since Roku's flagship platform revenue is basically the ability to monetize its audience through ads and nudging viewers to try new services, the streaming hours metric has become even more critical. There are no signs that Roku's popularity is in trouble, and one can argue that extreme weather this summer has probably kept a lot of people at home in front of their TVs.

3. New partnerships can keep emerging

One of the most noteworthy things to happen during the second quarter was a partnership announced with Amazon. The leading online retailer operates a popular demand-side ad buying platform, and in mid-June it announced that it would start offering its advertisers a way to reach Roku's growing user base. The integration is a win-win deal for both parties, even if Amazon's Fire TV competes with Roku.

The fruits of that deal won't move the needle in the second quarter. The unexpected partnership won't be a factor until the latter half of this year. However, Roku will have a chance to discuss the partnership and how it can increase the ARPU that it is no longer reporting. This could also spur other partnerships as Roku establishes itself as the best way for advertisers to get noticed in the era of connected TV marketing. Roku is ready for its close-up as a growth stock again.

Roku's stock chart over the past year showing gains but also a tendency to dip after earnings.

Image source: YCharts.

A reason to sell?

Take a closer look at the stock chart above. You'll see Roku moving higher with its 53% surge over the past 12 months. Now zoom in on the purple E circles that point out when it posted its past four quarterly results. The stock has moved lower after announcing fresh financial results three of those four times.

On the one hand, it's encouraging to see that Roku isn't just surviving but actually thriving after initially poorly received quarterly results. However, it could give an investor pause seeing how the market response hasn't been positive the day after Roku's financial updates.

Long-term investors don't have to worry about timing the market. It's also worth noting that the three positive catalysts noted could make this a winning Friday instead of a sinking one. Roku has a lot to prove this week. Stay close to see how it all unfolds.

Should you invest $1,000 in Roku right now?

Before you buy stock in Roku, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Roku wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $630,291!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,075,791!*

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See the 10 stocks Β»

*Stock Advisor returns as of July 29, 2025

Rick Munarriz has positions in Roku. The Motley Fool has positions in and recommends Amazon and Roku. The Motley Fool has a disclosure policy.

3 Brilliant Growth Stocks to Buy Right Now

Key Points

  • This growth stock is up over 40-fold since 2015 and is still growing revenue at high rates.

  • This e-commerce powerhouse operates in an environment where 85% of sales are still offline, giving it a long growth runway.

  • This streaming stock could be at a turning point.

Building wealth in the stock market is not difficult. The biggest challenge is staying focused on the long-term potential of a business when market volatility strikes, as it inevitably will. As long as you invest in competitively positioned companies that have lots of room to expand over the long term, you're going to be successful.

As the markets hit new highs at the midway point of 2025, three Motley Fool contributors believe Shopify (NASDAQ: SHOP), MercadoLibre (NASDAQ: MELI), and Roku (NASDAQ: ROKU) can make solid additions to a long-term investor's portfolio. Here's why these stocks are poised to deliver outstanding returns.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More Β»

An upward trending line over a stack of coins indicating growth.

Image source: Getty Images.

An excellent stock to invest in e-commerce growth

John Ballard (Shopify): Shopify has been an amazing performer for investors. The shares have rocketed from a split-adjusted share price of about $3 following its initial public offering in 2015 to around $120 today. But what makes Shopify a brilliant growth stock is that it is still growing revenue at over 20% annually, with potential to keep growing at high rates for a long time.

The company's main driver of growth is not subscriptions to its platform, but merchant solutions, such as payment processing, shipping solutions, and capital lending. Shopify has reported 20% or more quarterly revenue growth for the last two years, with merchant solutions now comprising 74% of the business.

Merchant solutions are a high-margin revenue stream for Shopify. Because of this, Shopify continues to invest in driving this side of the business. Over the last year, it doubled the number of markets for Shopify Payments. It is also launching free tools, such as TariffGuide.ai, which uses artificial intelligence to help merchants figure out how to reduce costs in their supply chain based on product details. Shopify's innovation is an advantage in building the go-to operating system for e-commerce.

Of course, merchant solutions only grow if businesses using Shopify's platform are selling more and generating payment fees. This incentivizes Shopify to help merchants succeed. This forms a sort of partnership between the company and its merchant customers, which ultimately benefits the company and shareholders.

E-commerce is a multitrillion-dollar market, yet the total value of transactions completed by a Shopify merchant in the last quarter was less than $75 billion, or $350 billion on an annual run-rate basis. The recent expansion of Shopify Payments to 16 new markets should help it further penetrate this opportunity to drive more growth. All signs point to Shopify growing substantially in the years to come.

Great performance, tons of opportunity

Jennifer Saibil (MercadoLibre): MercadoLibre is an e-commerce powerhouse serving Latin America, and it's demonstrating fantastic growth. Its population is underpenetrated in e-commerce, giving it a long growth runway. It also has a growing presence in financial services, and its wide-ranging businesses in areas that are still adopting technology mean it has years of growth ahead.

In the 2025 first quarter, revenue increased 64% (currency neutral) year over year. Gross merchandise volume (GMV) was up 40%, and total payment volume increased 72%. It's also highly profitable. Operating income increased 45% over last year with a 12.9% margin.

Although e-commerce is growing rapidly, physical stores still account for 85% of sales in the company's regions. As the leader in e-commerce, MercadoLibre has 5% of the total retail market, and it's helping to generate the shift over to digital shopping by improving its value proposition with speedy deliveries, an increased assortment, and more. It's working, and unique active buyers continue to increase, up 25% year over year to 67 million in the first quarter. Like Amazon, it's also monetizing its platform with a lucrative and growing advertising business.

The fintech business is younger and growing even faster. Monthly active users increased 31% year over year in the first quarter to 64 million, and the credit portfolio increased 74%. The large incumbent banks in Latin America still account for the vast majority of banking in the region, but MercadoLibre is capturing market share through offering easy-to-use digital services and high yields on accounts. It's also expanding its platform with new products and features, and it's planning to open a fully digital bank in Mexico and Argentina.

MercadoLibre stock is up 41% year to date, crushing the market. It's been especially attractive to investors this year since it has low exposure to tariffs, but it tends to beat the market at any time. With its well-run business and wide opportunities, it should continue to create shareholder value for the foreseeable future.

This streaming stock could be ready for a breakout

Jeremy Bowman (Roku): There's no doubt that Roku has struggled in recent years. The leading streaming distribution platform is still operating at a loss, even though streaming now has a larger share of viewing in the U.S. than broadcast and cable combined.

The stock has been a laggard as well since a pandemic surge led to a collapse, but it could finally be ready to turn the corner. First, Roku said it expected to report an operating profit on a generally accepted accounting principles (GAAP) basis in 2026, and the company's recent results continue to show it making progress toward that end. In the first quarter of 2025, the company reported revenue growth of 16% to $1.02 billion, and its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) improved 37% to $56 million.

Last month, Roku announced a new partnership with Amazon, integrating Roku's authenticated CTV footprint with Amazon's DSP (demand-side platform). The partnership gives Roku a new way to leverage its ad inventory and technology and neutralizes one of its closest competitors in streaming distribution.

Additionally, the recent earnings report from Netflix showed that there's still robust growth in the streaming sector if Roku can take advantage of it. Meanwhile, Alphabet also showed off solid growth in its earnings report with advertising growth at 10%.

Analysts are expecting 11% growth from Roku in the second quarter to $1.07 billion when it reports earnings in August. If the company can top that and take steps toward profitability, there's a lot of upside potential for the stock.

Should you invest $1,000 in Shopify right now?

Before you buy stock in Shopify, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Shopify wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $636,774!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,064,942!*

Now, it’s worth noting Stock Advisor’s total average return is 1,040% β€” a market-crushing outperformance compared to 182% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks Β»

*Stock Advisor returns as of July 21, 2025

Jennifer Saibil has positions in MercadoLibre. Jeremy Bowman has positions in Amazon, MercadoLibre, Netflix, Roku, and Shopify. John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, MercadoLibre, Netflix, Roku, and Shopify. The Motley Fool has a disclosure policy.

India bans streaming apps you’ve never heard of β€” but millions watch

25 July 2025 at 22:02
India has ordered the blocking of 25 streaming services β€”Β many with millions of viewers and even paying subscribers β€” for allegedly promoting "obscene" content.

OpenAI and partners are building a massive AI data center in Texas

23 July 2025 at 21:34

On Tuesday, OpenAI announced a partnership with Oracle to develop 4.5 gigawatts of additional data center capacity for its Stargate AI infrastructure platform in the US. The expansion, which TechCrunch reports is part of a $30 billion-per-year deal between OpenAI and Oracle, will reportedly bring OpenAI's total Stargate capacity under development to over 5 gigawatts.

The data center has taken root in Abilene, Texas, a city of 127,000 located 150 miles west of Fort Worth. The city, which serves as the commercial hub of a 19-county region known as the "Big Country," offers a location with existing tech employment ecosystem, including Dyess Air Force Base and three universities. Abilene's economy has evolved over time from its agricultural and livestock roots to embrace technology and manufacturing sectors.

"We have signed a deal for an additional 4.5 gigawatts of capacity with oracle as part of stargate. easy to throw around numbers, but this is a gigantic infrastructure project," wrote OpenAI CEO Sam Altman on X. "We are planning to significantly expand the ambitions of stargate past the $500 billion commitment we announced in January."

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Β© OpenAI

These Growth Stocks Are Down 36% to 86% From Their All-Time Highs. Is It Time to Buy Them?

Key Points

  • Reddit's investments in AI and proprietary data could help the company deliver strong growth for years to come.

  • Unity Software is a fallen growth stock with a promising turnaround strategy.

Reddit (NYSE: RDDT) and Unity Software (NYSE: U) are two former high-flying growth stocks that are trading well off their previous peaks. Sometimes stocks fall for good reasons, but at other times, a discounted share price can be a great buying opportunity.

Let's look at why these stocks fell, how the underlying businesses are performing, and whether they can recover their former glory.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue Β»

A stock analyst studying a chart on a computer reflected in his eye glasses.

Image source: Getty Images.

1. Reddit

Reddit has reported strong revenue growth since completing its initial public offering (IPO) last year. But the stock has fallen from its recent highs over concerns about the potential for a slowing ad market and competition in the digital advertising market.

The recent sell-off is a good buying opportunity, as Wall Street still underestimates the power of Reddit's highly engaged user base.

Despite uncertainty with the ad market and Wall Street's concerns over competition, Reddit reported robust revenue growth in the first quarter. Daily active unique users grew 31% year over year to 108 million, while ad revenue surged 61% to $359 million.

In June, Reddit announced new ad tools that promise to drive more advertising demand. These new tools are powered by artificial intelligence (AI) and will provide marketers real-time insights into discussions happening on Reddit.

Reddit is also bringing AI features to its users. Reddit Answers reached 1 million weekly users in Q1. It's basically a ChatGPT-style chatbot that pulls answers from all the discussions happening on Reddit's platform.

Reddit is growing much faster than other social media companies like Pinterest, Meta Platforms, Snap, and even Google's search business. It has a lot of valuable data on its platform, which it's monetizing by licensing it to other AI companies for use in training their models.

While the stock has already rebounded about 50% from its recent lows, it's still trading 36% off its all-time high. Analysts are expecting the company to report year-over-year revenue growth of 51% for Q2, according to Yahoo! Finance.

Another strong quarter could push the stock higher, but regardless of where the stock trades in the near term, Reddit appears on track to grow into a more valuable business down the road. Its AI investments and data are underappreciated by Wall Street, making the stock worth holding for the long term.

Software developers working on a 3D model on a computer.

Image source: Getty Images.

2. Unity Software

Unity is one of the most widely used game engines that developers use for making video games. It offers a suite of tools to make games for all the major platforms (mobile, PC, and console). It was a fast-growing business through 2023, regularly reporting more than 20% quarterly revenue growth. But the combination of an expensive valuation amid falling revenue has weighed on the share price the past few years.

The stock is down 86% from its previous highs. CEO Matthew Bromberg stepped in last year to turn the business around. Management is exiting non-essential products and services and returning Unity's business to focus on high-growth and high-margin revenue opportunities.

Investors looking at Unity's recent financial results won't see much to like. Its "portfolio reset" was responsible for the 6% year-over-year decrease in revenue last quarter. However, Bromberg's strategy could get the business back on track and unlock Unity's full potential, which isn't reflected in the stock's valuation.

Unity just completed the migration of its advertising business to its new, AI-powered platform, Unity Vector. This will allow Unity to provide deeper insights in order to deliver better advertising results for its customers. Management indicated that this won't be fully reflected in its Q2 revenue, but Vector puts the company's Grow Solutions segment, which made up two-thirds of the business last quarter, on course to deliver strong growth over the long term.

The other part of Unity's business is its Create Solutions segment, which posted an 8% year-over-year decline in revenue last quarter. This includes revenue from the tools Unity sells to game developers. It is planning three important updates to its Unity 6 software this year. One of these updates includes AI features that will help developers build games faster. This could be a significant demand driver for Unity's software.

While the company's financials look like a mess, the stock could move higher over the next year as the company returns to profitable growth. Analysts expect revenue to decline 2% for 2025 before growing 9% next year to $1.9 billion. By 2029, analysts expect Unity's focus on investing in more profitable opportunities to grow adjusted earnings per share to $2.34.

The stock is currently trading at just 13 times 2029 estimates, which is cheap. This growth stock could trade over 20 times earnings, potentially doubling the share price in the next four years.

Should you invest $1,000 in Reddit right now?

Before you buy stock in Reddit, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Reddit wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,056,790!*

Now, it’s worth noting Stock Advisor’s total average return is 1,048% β€” a market-crushing outperformance compared to 180% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks Β»

*Stock Advisor returns as of July 15, 2025

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Meta Platforms, Pinterest, and Unity Software. The Motley Fool has a disclosure policy.

The best streaming services in 2025

16 July 2025 at 09:01

With so many options available today, choosing the best streaming services can feel overwhelming. Whether you’re into blockbuster movies, reality TV, documentaries or just want access to news channels, there’s a platform tailored to your tastes and budget. From premium subscriptions like Disney Plus, Netflix and Max to free streaming options like Tubi or Pluto TV, there’s something for everyone.

If you’re looking to cut the cord completely, you might also want to explore live TV options that offer cable-like channels without the hassle. We’ve also put together a separate guide to the best live TV streaming services if you’re after a full channel lineup that includes sports, local stations and breaking news. In this buying guide, though, we’re focusing on the top on-demand streaming services worth subscribing to right now β€” whether you’re binging shows solo or setting up family-friendly entertainment for the weekend.

Best streaming services for 2025

This article originally appeared on Engadget at https://www.engadget.com/entertainment/streaming/best-streaming-services-154527042.html?src=rss

Β©

Β© Engadget

The best streaming services

Synths hunt down deadly monsters in latest Alien: Earth trailer

17 July 2025 at 17:57

The premiere of Alien: Earth is just weeks away, and FX/Hulu dropped one last trailer to pique our interest, along with a much more detailed synopsis. It's meditative and existential in tone, with a haunting tune playing over footage of mysterious alien craft, dead bodies, blood-spattered humans fleeing through futuristic corridors, and, of course, a spooky silhouette of a xenomorph in the distance.

As previously reported, the eight-episode series is set in 2120, two years before the events of the first film, Alien (1979), in a world where corporate interests are competing to unlock the key to human longevityβ€”maybe even immortality. Showrunner Noah Hawley has said that the style and mythology will be closer to that film than Prometheus (2012) or Alien: Covenant, both of which were also prequels.

Per the official premise:

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Β© YouTube/FX/Hulu

Google hides secret message in name list of 3,295 AI researchers

17 July 2025 at 17:12

How many Google AI researchers does it take to screw in a lightbulb? A recent research paper detailing the technical core behind Google's Gemini AI assistant may suggest an answer, listing an eye-popping 3,295 authors.

It's a number that recently caught the attention of machine learning researcher David Ha (known as "hardmaru" online), who revealed on X that the first 43 names also contain a hidden message. "There’s a secret code if you observe the authors’ first initials in the order of authorship," Ha wrote, relaying the Easter egg: "GEMINI MODELS CAN THINK AND GET BACK TO YOU IN A FLASH."

The paper, titled "Gemini 2.5: Pushing the Frontier with Advanced Reasoning, Multimodality, Long Context, and Next Generation Agentic Capabilities," describes Google's Gemini 2.5 Pro and Gemini 2.5 Flash AI models, which were released in March. These large language models, which power Google's chatbot AI assistant, feature simulated reasoning capabilities that produce a string of "thinking out loud" text before generating responses in an attempt to help them solve more difficult problems. That explains "think" and "flash" in the hidden text.

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Β© PeterPencil via Getty Images

EU presses pause on probe of X as US trade talks heat up

The European Commission has stalled one of its investigations into Elon Musk’s X for breaking the bloc’s digital transparency rules, while it seeks to conclude trade talks with the US.

Brussels was expected to finalise its probe into the social media platform before the EU’s summer recess but will miss this deadline, according to three officials familiar with the matter. They noted that a decision was likely to follow after clarity emerged in the EU-US trade negotiations. β€œIt’s all tied up,” one of the officials added.

The EU has several investigations into X under the bloc’s Digital Services Act, a set of rules for large online players to police their platforms more aggressively.

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Β© Getty Images | SOPA Images

Why Micron Stock Dropped Today

Key Points

  • Edgewater Research warned Monday that prices and demand for computer memory chips will fall in the second half of 2025.

  • On Thursday, TSMC seconded the emotion, warning of a sales slowdown coming in Q3.

  • Micron's free cash flow already looks weak relative to reported earnings. A slowdown could make things worse.

Micron (NASDAQ: MU) stock is getting hammered again Thursday afternoon, down 3.1% through 12:20 p.m. ET.

Earlier in the week, if you recall, shares of the computer semiconductor memory maker tumbled after Edgewater Research warned that prices and demand for computer memory chips would fall in the second half of 2025.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More Β»

Today, we're hearing echoes of the same forecast from Taiwan Semiconductor Manufacturing (NYSE: TSM), the biggest player in contract chip manufacturing.

Glowing red arrow is falling.

Image source: Getty Images.

Why TSMC's news should worry Micron investors

Early this morning, TSMC reported strong Q2 sales and earnings. By one measure, sales climbed 44.4%, and profits were up 60.7%.

That's great news for now. But turning to guidance, TSMC warned investors that Q3 sales will slow a bit, rising 38% at best, while gross and operating profit margins will both decline sequentially.

Unfortunately, this news tallies with what Edgewater told us earlier in the week: That chip demand and chip prices will both be "subseasonal" in the second half of this year (meaning Q3, and Q4 as well), and that there's a "bias lower" -- meaning things could get worse, not better.

Is Micron stock a sell?

Micron's own numbers don't give any more cause for optimism.

As I pointed out on Monday, the stock reports good earnings -- $6.2 billion in net profit over the last 12 months. However, free cash flow is less than one-third as good as its earnings according to generally accepted accounting principles (GAAP): Just $1.9 billion generated over the past year.

That's not a lot of cash to support Micron's $126 billion market cap. It actually gives the stock a price-to-free cash flow ratio of 66.5, which is probably too much to pay. It's almost certainly too much if pricing and demand are getting worse, not better.

Should you invest $1,000 in Micron Technology right now?

Before you buy stock in Micron Technology, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Micron Technology wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $674,281!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,050,415!*

Now, it’s worth noting Stock Advisor’s total average return is 1,058% β€” a market-crushing outperformance compared to 179% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks Β»

*Stock Advisor returns as of July 15, 2025

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.

My family of 5 outgrew our Subaru Outback. We test drove the Volkswagen ID Buzz and loved it — except for one thing.

15 July 2025 at 15:11
VW Buzz and Subaru Outback
The author tested the Volkswagen ID Buzz.

Courtesy of the author

  • We bought our Subaru Outback in 2018 when we had our first child.
  • It's been a super reliable car, but with three growing kids, we've outgrown it.
  • We tested the new electric 2025 Volkswagen ID Buzz, and we loved it.

We've had our Subaru Outback since 2018, when my first child was just a newborn.

Now that our kids are 7, 5, and 5, while the car is still as reliable as day one, it's become a source of stress because our kids fight so much in it from the lack of space.

My husband had been suggesting a minivan for our family, with three rows to space the kids out and sliding doors for easy loading. I, however, refuse to be a minivan mom. I find them ugly and impractical.

That all changed when I saw the new electric Volkswagen ID Buzz, so we decided to test it with our family β€” and now we are torn.

We need more space for our family so decided to test out the electric Volkswagen ID Buzz.
Woman driving VW ID Buzz
The author felt like the range makes this a city car more than a road trip car.

Courtesy of the author

There's no denying we need more space in the car. With three car seats, growing limbs, and all the stuff from school and sports, the back row is tight.

That's the major cause of fights in our car, which makes any trip (short or long) incredibly stressful for whoever is driving.

As for the rest of the car, it's got what we need: a big trunk, the ability to place a turtle top, and an overall reliable engine.

My first car was a Volkswagen Golf, which I loved, so I've always been a bit partial to the brand. We also tested the Volkswagen Atlas Crossport, which has two rows instead of three, and even having just a bit more space in the second row made our kids more comfortable and manageable.

When we saw previews on social media of the ID Buzz, VW's new version of their 1950s Bus, I was intrigued. It looked cuter than a van, but still offered what we thought we needed.

The third row is a true row.
The third row in the Volkswagen ID Buzz
The third row in the Volkswagen ID Buzz is a true row.

Courtesy of the author

When the kids saw the VW ID Buzz, they all squealed in excitement. I won't lie, it looks so cool in person. Even while driving it to summer camp drop off, we saw people turn around to do a double take and kids pointing as we drove past. If you don't like the attention, be warned that this car attracts all the looks.

The ID Buzz we tested didn't have captain seats, so we had to lower one seat for one of our kids to sit in the third row. As I was setting up the car seats, I noticed that the third row is a full row. I'm 5'6" tall and was able to sit comfortably with extra space for my legs.

Loading the kids was pretty easy.
ID Buzz
The ID Buzz's doors can be closed remotely.

Courtesy of the author

You can open the sliding doors with the key, and even with the seat lowered, it was easy for all three of them to navigate their bodies inside.

One detail I loved was the ability to open the doors three different ways: from the remote, as mentioned, from the actual door, and also from a button near the driver's seat.

This last option made it so I could get in the car, type in our destination on the screen, and not have to wait around to close the doors.

It doesn't have a ton of bells and whistles.
The interior of the VW ID Buzz.
The VW ID Buzz doesn't have a ton of bells and whistles according to the author.

Courtesy of the author

One of the biggest complaints online has been the interior design, which some feel is lacking compared to how innovative the exterior design is. For my family's needs, this wasn't a problem at all.

Coming from a 2017 car to a 2025 model, we could tell the difference in things like heated seats in the middle row and a more dynamic screen (our Subaru's screen doesn't even show a map). That said, the VW ID Buzz doesn't have that many bells and whistles, and I actually like that.

We recently drove a BMW 7 Series after getting a free upgrade from a rental car company, and I really disliked all the extra buttons in the back row.

My kids kept changing the temperature and radio station, annoying everyone.

The trunk space was limited but enough for day-to-day use.
The trunk in the VW ID Buzz
The trunk in the VW ID Buzz can be configured by lowering seats and platform.

Courtesy of the author

The trunk space in the ID Buzz is nonexistent compared to the space in our Subaru Outback if the third row is in use. I do like that the ID Buzz has two baskets that can be covered by a platform, allowing us to store groceries or sports equipment without taking up precious trunk space.

While the amount of space wouldn't be an issue on a day-to-day basis, if we were going on a road trip, the space in the trunk does feel a bit limited.

But there was one major drawback for us.
ID Buzz charging
The author charger the car in about 40 minutes.

Courtesy of the author

Overall, I've found the Volkswagen ID Buzz easy to drive, fun, and reliable. While there's criticism for the range β€” which is advertised at 230 miles β€” as a city car to move kids from one location to the other, the range felt fine. We were able to run almost a full week without charging, and then stopped to charge while during groceries for about 30 minutes.

The one criticism I have for the ID Buzz is its price point. The 4-wheel-drive, which is what we would need in Maine, is retailing at over $72,000. This puts it over our other car, an Audi Q7, the 2025 model of which is now retailing at $70,000 and is considered a luxury SUV.

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