Streaming Roku Into Your Portfolio
Roku's IPO has been priced at $14 per share, representing a valuation of $1.3 billion.
The company faces some intense competitors, but is growing the most profitable segment on their revenue.
I think the Roku IPO is priced fairly for the company and investors.
The video streaming pioneer, Roku (ROKU) has been priced at $14 per share for its IPO, which will raise about $219 million in proceeds. This gives them a valuation of $1.3 billion, compared to their valuation of $992 million in November 2016.
Competition
Roku’s competition is fierce and growing. They face the big 3 heavy hitting competitors Alphabet (GOOGL), Amazon (AMZN), and Apple (AAPL), who all offer their own streaming devices. While most people wouldn’t dream of going toe to toe with those 3 tech monsters, Roku has held their ground. Not only have they held their ground, but they have actually increased their ground by growing their market share.
As you can see from the chart, not only does Roku have the largest percent of the market share, but they actually gained ground against their competition from Q1 2016 to Q1 2017. Roku offers a variety of products ranging in price, which may be what is making them appeal to a larger customer base. Either way, Roku has shown they can take on the heaviest hitters and they aren’t going away.
But it’s worth noting that Roku’s competition doesn’t just end with those 3 tech giants. While those are the big direct competitors, they still face competition from television manufacturers, such as Samsung and LG, who have built in streaming capabilities. Then add on gaming systems such as Microsoft (MSFT) Xbox and Sony Playstation who also have streaming capabilities and you’ll see why competition poses as a serious threat.
soursces:https://seekingalpha.com/article/4110125-streaming-roku-portfolio
The company faces some intense competitors, but is growing the most profitable segment on their revenue.
I think the Roku IPO is priced fairly for the company and investors.
The video streaming pioneer, Roku (ROKU) has been priced at $14 per share for its IPO, which will raise about $219 million in proceeds. This gives them a valuation of $1.3 billion, compared to their valuation of $992 million in November 2016.
Competition
Roku’s competition is fierce and growing. They face the big 3 heavy hitting competitors Alphabet (GOOGL), Amazon (AMZN), and Apple (AAPL), who all offer their own streaming devices. While most people wouldn’t dream of going toe to toe with those 3 tech monsters, Roku has held their ground. Not only have they held their ground, but they have actually increased their ground by growing their market share.
As you can see from the chart, not only does Roku have the largest percent of the market share, but they actually gained ground against their competition from Q1 2016 to Q1 2017. Roku offers a variety of products ranging in price, which may be what is making them appeal to a larger customer base. Either way, Roku has shown they can take on the heaviest hitters and they aren’t going away.
But it’s worth noting that Roku’s competition doesn’t just end with those 3 tech giants. While those are the big direct competitors, they still face competition from television manufacturers, such as Samsung and LG, who have built in streaming capabilities. Then add on gaming systems such as Microsoft (MSFT) Xbox and Sony Playstation who also have streaming capabilities and you’ll see why competition poses as a serious threat.
soursces:https://seekingalpha.com/article/4110125-streaming-roku-portfolio
Comments
Post a Comment