Roku: Buy This Industry Disruptor
Roku's shares are breaking out higher.
It is strategically positioned to take advantage of the shift in TV.
I am buying stock in this company.
This idea was discussed in more depth with members of my private investing community, Absolute Returns.
Roku (ROKU) is gaining upward momentum as its fundamental operations continue to expand, leading a number of bearish analysts to turn bullish. The company has taken market share and experienced strong growth since its IPO as it is strategically positioned to benefit from consumer migration from traditional TV to streaming services.
Its share price shot higher in the first few months of trading, leading to a number of bearish calls on the stock by Wall Street analysts. After the recent selloff in its share price however, many analysts are now bullish due to the company’s continued operational success. I am buying stock in this name as it looks to be a generational company in the early innings of its growth trajectory.
Fundamental Narrative
Roku has experienced impressive operational growth in recent years, but valuation has always been seen as a concern. Its share price nearly halved in the first few months of 2018, leading many top analysts to emerge touting the company as an attractive buying opportunity. Due to its continued growth and positive sentiment around the investing community, Roku could see its share price trade higher in coming quarters.
The most recent catalyst to Roku shares trading higher has been a change of heart from short seller Citron Research, which says it's now covered its short and gone long on the streaming stock, according to Seeking Alpha. Last November, Citron tweeted that the stock had become a joke and would trade back to $28 after running up to $50 following its IPO. Citron recently said however:
"But now everything has changed, and it is time to re-evaluate, the [over-the-top] movement has become a megatrend that cannot be ignored."
And
“It's trading at its biggest discount to OTT peers despite being the only pure play that generates ad revenue.”
Another previously bearish analyst came out recently to upgrade the company. Analyst Benjamin Swinburne, from Morgan Stanley (MS) continues to have concerns over the lack of visibility into long-term ad monetization, particularly thanks to boosted TV OS competition from Amazon (AMZN) and Google (NASDAQ:GOOG) (NASDAQ:GOOGL) however, with the stock down more than 25% this year, the current valuation isn't as elevated as it once was, according to Seeking Alpha.
source : https://seekingalpha.com/article/4181767-roku-buy-industry-disruptor
It is strategically positioned to take advantage of the shift in TV.
I am buying stock in this company.
This idea was discussed in more depth with members of my private investing community, Absolute Returns.
Roku (ROKU) is gaining upward momentum as its fundamental operations continue to expand, leading a number of bearish analysts to turn bullish. The company has taken market share and experienced strong growth since its IPO as it is strategically positioned to benefit from consumer migration from traditional TV to streaming services.
Its share price shot higher in the first few months of trading, leading to a number of bearish calls on the stock by Wall Street analysts. After the recent selloff in its share price however, many analysts are now bullish due to the company’s continued operational success. I am buying stock in this name as it looks to be a generational company in the early innings of its growth trajectory.
Fundamental Narrative
Roku has experienced impressive operational growth in recent years, but valuation has always been seen as a concern. Its share price nearly halved in the first few months of 2018, leading many top analysts to emerge touting the company as an attractive buying opportunity. Due to its continued growth and positive sentiment around the investing community, Roku could see its share price trade higher in coming quarters.
The most recent catalyst to Roku shares trading higher has been a change of heart from short seller Citron Research, which says it's now covered its short and gone long on the streaming stock, according to Seeking Alpha. Last November, Citron tweeted that the stock had become a joke and would trade back to $28 after running up to $50 following its IPO. Citron recently said however:
"But now everything has changed, and it is time to re-evaluate, the [over-the-top] movement has become a megatrend that cannot be ignored."
And
“It's trading at its biggest discount to OTT peers despite being the only pure play that generates ad revenue.”
Another previously bearish analyst came out recently to upgrade the company. Analyst Benjamin Swinburne, from Morgan Stanley (MS) continues to have concerns over the lack of visibility into long-term ad monetization, particularly thanks to boosted TV OS competition from Amazon (AMZN) and Google (NASDAQ:GOOG) (NASDAQ:GOOGL) however, with the stock down more than 25% this year, the current valuation isn't as elevated as it once was, according to Seeking Alpha.
source : https://seekingalpha.com/article/4181767-roku-buy-industry-disruptor
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