SHU Portfolio: Roku Rockets

The company had another fantastic quarter driven in equal measure by platform active user growth and ARPU growth.

The tailwinds of shifting towards OTT will be blowing for years to come.

We think the shares will continue to rocket as long as the competition doesn't make any serious inroads into their platform growth, especially their gains on smart TVs.

The Roku Channel constitutes a platform in itself, brings multiple advantages and could function a little like a hedge should competition eat into their TV platform lead in the future.

On June 1 this year, we bought 100 shares of Roku (ROKU) for the SHU portfolio at $37.77. We also explained why in an article. Needless to say, this has gone rather well in a very short time.

Here is a little update on the SHU portfolio to start off with (Friday, August 10 after market close in chronological order of buying starting on September 29, 2017):

Do we need to revise our original Roku investment thesis? No, not really, apart from the fact that things are going even better than we expected. Here are a number of takeaways from the quarter.

Platform growth
There are three main avenues to achieve platform user growth:

The Roku players (HDMI plugin devices)
Licensing their OS to OEMs
The Roku Channel (see below)
The quarter experienced a surprising resurgence in the players with a 24% rise in Q2 revenue (y/y), but this isn't the future, which is that all TVs become smart TVs with an operating system.

https://www.servicedonline.com/

Comments

Post a Comment

Popular posts from this blog

Elastic coin phone number

Elastic coin project http://www.elastic-project.com  is a non-profit community driven website, created by and for the developers, other community members and those interested in this project, to surge information and helpful advice on everything related to Elastic. The overall goals of the website are: To be the public face of the Elastic Project To be a useful resource to current Elastic Project users, testers and developers To be a place that those current users can point others to for info and updates This thread is too long to read, and extracting every information is just too much to handle, so please explore the website to obtain supplemental information
Read more

Here's Why Roku Will Surpass $100 In Next Two Years

Image
With 22 million subscribers, Roku now rivals Comcast as the second largest distributor of content in the United States. 80% of time of OTT viewing is spent on catalog programming vs. costly original programming. Roku's ad-supported business model fights highly fragmented subscription fatigue. Global is where Roku will become a large-cap phenom in the future. The low cost platform combined with over 5,000 channels today serves global markets like no competitor can. Roku's (ROKU) stock is getting a lot of attention after it reported stellar second-quarter results due to 57% year-over-year revenue growth to $156.8 million beating the analyst forecast of $141 million. Compare this to 37% year-over-year revenue growth in Q1. However, as I stated in my Q1 article, the platform revenue is where Roku will continue to see a majority of the gains. The video streaming platform revenue was up 96% during the period to $90.3 million with player revenue up 24% to $66.5 milli...
Read more

Adexcoin phone number

AdEx has teamed up with the world’s biggest travel media company Ink, to auction up to 2 million ad spaces on blockchain technology. Under the terms of the agreement, the ad exchange company will manage the ads on its underlying technology as Ink awards the bids. AdEx - Ink Partnership The partnership is a big deal given that it brings two companies that are juggernauts within their respective areas of operations. AdEx with its Ethereum platform is a decentralized ad exchange company that uses smart contracts to help publishers and advertisers interact transparently and seamlessly. Its platform boasts of popular blockchain partners such as NEO, Wings, and Fintech blockchain Group. Ink, on the other hand, boasts of effective advertising content that reaches over 775 million passengers a year. The travel media company has partnerships with over 22 airlines. The collaboration will allow the two companies to hold an auction on blockchain for ad spaces on various boarding passes. ...
Read more