Roku: Great Product, Bad Business?

Discussion of the recently announced ROKU IPO.
We take a look at the product and its benefits and the competitive threats.
Initial quick dive into the financials.
This idea was discussed in more depth with members of my private investing community, Income Idea.
Even though I was not planning on writing about Roku Inc. (ROKU) until next week, I was inspired. I was inspired to do some ROKU research while watching Shark Tank... on my ROKU 3 unit.
As someone who is concerned with the state of the economy, I am interested in the upcoming IPOs for the sole reason to see if they are quality companies, or merely companies who are rushing to come out towards the end of the bull market before the market crashes in order to cash out previous investors.
My last IPO articles were focused on YogaWorks (YOGA), and while I am a fan of the Yoga lifestyle, the financials simply did not line up. The company was simply not profitable, no matter how much the revenues grew. Since my initial articles, the stock fell more than 20% and fell more than 35% from its IPO price.
Roku produces a product that I LOVE... but is it yet another YogaWorks?
Or as they beautifully state on Shark Tank... It's a Product... NOT a Business.

What is Roku?

For those that are not familiar with Roku as a company, let's spend a few minutes reviewing what it is and why I own 2 Roku boxes.
Roku was the first mainstream solution to playing Netflix's (NASDAQ:NFLX) streaming service to your TV in 2008.
Since then, Roku has gone through multiple generations of devices and we are currently on the 5th generation of set top devices.
Today, Rokus are full featured, developer friendly devices which let millions of people cut the cord from cable companies and to easily stream internet content to their television.
Through a Roku device you can easily watch your Netflix, Amazon Prime Video (AMZN), Hulu and Sling TV subscriptions, out of the box.
More than that, you can also watch the numerous on the go premium services from HBO, Showtime and others, along with all you can consume content from free sources like YouTube (GOOG) (GOOGL).
Beyond the mainstream channels, you can also access the thousands of other public and private programs to access global content from any category.
https://www.servicedonline.com/roku-live-chat/

source : https://seekingalpha.com/article/4103794-roku-great-product-bad-business

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