Amazon Targets Roku, Steals Away A Key Relationship With Best Buy

The event itself was predictable, the timing of the event more difficult. It was just a matter of time before significant competition from major companies began to increase for Roku.

At the time of the 3/22/18 Trader's Idea Flow Update, our Roku short was up almost 10%. With today's 11% decline in Roku's share price, this short's gains have improved.

We believe Roku has much more downside ahead. Today's news regarding the Amazon-Best Buy partnership is likely to be one of several major competitive threats now emerging for Roku.

This idea was discussed in more depth with members of my private investing community, Trader's Idea Flow.



Today's negative news for Roku (ROKU) is actually a double whammy of badness for the September 2017 IPO. The obvious headline is that 10 different models of Amazon's (AMZN) Fire TV will begin taking up floor space at Best Buy (BBY) stores in the U.S. this summer. But the relationship between Best Buy and Amazon runs deeper, and this is where the problems begin to multiply for Roku. Please take note of the third bullet regarding the Insignia brand in the CNBC article summary below:



Insignia is Best Buy's own brand, and Amazon has won this key relationship by taking it away from Roku. Best Buy previously partnered with Roku via the Insignia brand. No more. Clearly, Best Buy is now financially motivated to promote Amazon products at the expense of Roku products. So, it is not just that 10 new models of Amazon's Fire TV will be taking away floor space from products with Roku's platform installed inside. It is actually much worse for Roku. Best Buy is now a partner of Amazon that's in direct competition with products that incorporate the Roku platform. Not good for Roku.

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https://www.servicedonline.com/roku-remote-customer-support-phone-number/


source : https://seekingalpha.com/article/4164023-amazon-targets-roku-steals-away-key-relationship-best-buy

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