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Investor Insights

This summary was created by AI, based on 1 opinions in the last 12 months.

Experts are surprised by the exceptional performance of Roku Inc, with shares up 50% this month. They attribute this success to Roku's strong position in the streaming content market. However, some believe that the stock may have risen too much and is now overvalued. Overall, the consensus is that Roku Inc is thriving in its industry, but the rapid increase in stock value may not be sustainable.

Consensus
Thriving
Valuation
Overvalued
BUY ON WEAKNESS
Roku Inc
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

ROKU operates as an operating system to consolidate all streaming providers into one platform, a very favourable market position. In the last five years, revenue growth was healthy and consistently above 20%, although it slowed down in recent quarters to around low double-digits. The balance sheet is strong, with a net cash of $1.4B compared to the market cap of $7.8B. The company has been growing strongly over the years. As a stock, ROKU’s share price has underperformed partially due to a high starting valuation. We think ROKU at the current price is quite attractive if the company can manage to continue to grow and be more disciplined on the cost side. Based on consensus estimates, sales are expected to grow by 12% on average over the next few years. It does generate good cash flow ($456M last year) and thus we would not see solvency as a concern. 
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DON'T BUY
Roku Inc

Profitable, but has flatlined. Has all the ingredients. Dominates connected TV market with about 53% market share in NA. Having difficulty monetizing. Revenue comes from selling devices, ads, and licensing.

computer software
BUY ON WEAKNESS
Roku Inc
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

EPS was -35c, vs estimates of -63c. Sales were $881M vs $850M estimates. The stock is down as management noted it expects EBITDA to moderate in the second half of the year. Average revenue per user could decline. Sales did rise 19% in Q1. Though 2Q guidance was in line with consensus, it may be premature to assume pressures have eased. Tough comparisons will create 2Q headwinds and higher marketing spending will likely weigh on 2H Ebitda. Average revenue per user in 1Q improved sequentially, but there is growing competition in the connected-TV ad space, especially with the launch of Amazon Prime video ads. Comparisons are tough in part due to a cooldown in the streaming wars and a lapping of price hikes, which may crimp platform revenue gains to high-single-digits. While platform gains should accelerate in 2025, pressures may build after the Walmart-Vizio deal closes, especially in active account growth. The outlook is certainly 'less great' but with the stock decline we think this is reflected in the new valuation.
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HOLD
Roku Inc

Is surprised with how well it's doing, but people watch content by streaming, which is Roku's wheelhouse. Shares are up 50% this month, up too much for him.

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TOP PICK
Roku Inc

Roku pioneered streaming to the TV. We connect users to the streaming content they love, enable content publishers to build and monetize large audiences, and provide advertisers with unique capabilities to engage consumers. Roku streaming players and TV-related audio devices are available in the U.S. and in select countries through direct retail sales and licensing arrangements with service operators. Roku TV™ models are available in the U.S. and in select countries through licensing arrangements with TV OEM brands. Roku is headquartered in San Jose, Calif. U.S.A. Social media mentions are up 79% in the past 24h.

computer software
DON'T BUY
Roku Inc
Had a strong beat today

The stock is trading back at levels not seen since summer 2018, but a year ago was over $500 ($70 today). Is now at lows of 2020. The bst days for Roku are behind them, and after the sell-off in recent years, Roku remains an expensive stock.

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BUY ON WEAKNESS
Roku Inc

Beat handily today, but last October they guided to an 8% earnings decline, so the bar was set low. The chart is a disaster, so reporting anything less than a disaster would mean a rally.

computer software
DON'T BUY
Roku Inc
It's still losing money. Nope.
computer software
DON'T BUY
Roku Inc
Like Snap, when there's no growth or earnings, then you guide down, then miss on earnings and revenues, there's no place for this company in the market. No surprise it's down 25%. All the streamers have come down. Roku is actually a great company, but how do you value it?
computer software
DON'T BUY
Roku Inc
It missed earnings badly and got downgraded. Share are getting hammered. He has traded this in the past, years ago, when momentum was strong. Never owned this for its fundamentals. It remains expensive on earnings that won't come for a few more years. Can flow is starting to appear. Roku is just too expensive. PE matters.
computer software
DON'T BUY
Roku Inc
Wall Street has left certain "pandemic" stocks for dead. Flew from under $60 to $490 during Covd. Absurd. Now, it trades at a still-high 79x earnings. Today's 7% jump (because Roku extended their deal with Amazon) is a one-day increase.
computer software
DON'T BUY
Roku Inc
Many have given up on this and it trades at 110x earnings. It's classed with Peloton and the lockdown stocks.
computer software
DON'T BUY
Roku Inc
Roku reminds him of companies that thrived during the pandemic and thank heavens it's winding down. Roku is like Peloton.
computer software
DON'T BUY
Roku Inc
Like Zoom, it's considered a stay-at-home stock, so it has negative sentiment.
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
Roku Inc
(A Top Pick Apr 29/21, Up 0.1%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with ROKU has triggered its stop at $355. We recommend covering the remaining position at this time. Combined with the previous recommendation to cover half the position, this will produce a net return on investment over 16%.
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Showing 1 to 15 of 39 entries

Roku Inc(ROKU-Q) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 2

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 1

Total Signals / Votes : 4

Stockchase rating for Roku Inc is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Roku Inc(ROKU-Q) Frequently Asked Questions

What is Roku Inc stock symbol?

Roku Inc is a American stock, trading under the symbol ROKU-Q on the NASDAQ (ROKU). It is usually referred to as NASDAQ:ROKU or ROKU-Q

Is Roku Inc a buy or a sell?

In the last year, 4 stock analysts published opinions about ROKU-Q. 2 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Roku Inc.

Is Roku Inc a good investment or a top pick?

Roku Inc was recommended as a Top Pick by on . Read the latest stock experts ratings for Roku Inc.

Why is Roku Inc stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Roku Inc worth watching?

4 stock analysts on Stockchase covered Roku Inc In the last year. It is a trending stock that is worth watching.

What is Roku Inc stock price?

On 2024-06-20, Roku Inc (ROKU-Q) stock closed at a price of $52.66.