|Bid||56.65 x 800|
|Ask||56.68 x 1400|
|Day's Range||55.02 - 57.34|
|52 Week Range||26.30 - 77.57|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Earnings Date||May 7, 2019 - May 13, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||67.45|
With Apple (AAPL) and Disney (DIS) both launching their own streaming service later in 2019, will Roku (ROKU) stand to benefit? That’s the thought from many investors and analysts, as the streaming service platform is expected to increase its user base and generate more revenue as streaming services become more popular. While the details on the two new services are scant, it is expected that Roku will at least host Disney+, which will compete for a high share of the children’s programming segment. As Roku takes a share of advertising and subscription revenue from companies on its platform, it should be able to grow with the additions of new media services. On the news, Laura Martin of Needham remains bullish on ROKU stock, maintaining her Buy rating and $85 price target, which implies nearly 50% upside from current levels (To watch Martin's track record, click here)For Martin, Disney is an important piece to Roku’s growth. The analyst believes Disney+ could add nearly $200mm/year to Roku and represents about $1B of incremental value, or 15% of Roku’s current EV and market cap. Martin thinks Roku “shares in the value created by its platform through a standard rev-share model by taking a share of advertising and subscription revenue of every app available on its platform,” and the addition of Disney would contribute through this revenue-sharing model. Martin says Disney projects “ Disney+ will have 20-30mm US subscribers (and 60-90m global subs) by 2024 at pricing of $7/month and $70/year.” Combined with Roku’s 27 million household, “if Roku holds “share” and signs up 20% of DIS’s projected 20-30mm US subs, it implies Roku would sign up 4mm-6mm DIS+ subs between 2020 and 2024, which implies added revenue to Roku in 2024 of $87mm (ie, 5mm subs signed up by Roku x 25% mid-point rev share x $70/year in 2024).” But while external relationships may provide Roku a boost, some analysts believe Roku’s real growth will come from original content, the method Netflix, Amazon and Hulu are using to expand. The Roku Channel remains a popular channel in the Roku lineup, as it is estimated that 10% of Roku’s 27 million households are actively watching the channel.Granted, not everyone is as enthusiastic about Roku as Martin. Out of 11 analysts polled in the last 3 months, 5 remain neutral on ROKU stock, 4 are bullish and 2 are bearish. Worthy of note, the 12-month average price target stands at $62.60, suggesting the stock has about 11% upside potential over the next 12 months. (See ROKU's price targets and analyst ratings on TipRanks) Next Up: Roku Stock Could Stay Grounded… For Now More recent articles from Smarter Analyst: * Jeff Bezos Is Leading Amazon (AMZN) in the Right Direction * Why Autonomous Could Be a Strong Driver for Nvidia (NVDA) Stock * Microsoft (MSFT) Stock's Big Rally Should Continue * Oppenheimer Still Sees 40% Upside for Tesla (TSLA) Stock
Roku Inc. today announced it will release first quarter 2019 results after the stock market close on Wednesday, May 8, 2019. The company will host a live webcast of its conference call to discuss the results at 2:00 p.m.
Needham analyst Laura Martin reiterated her bullish view of Roku Inc. shares on Tuesday, writing that Walt Disney Co.’s planned launch of a dedicated streaming service could be the “next $1 billion upside driver” for the company.
It’s hard to believe a mega-brand such as Disney would be seen by investors as a growth stock. Streaming incumbent and growth icon Netflix (NFLX) had a very different reaction, however. Netflix shares fell about 5% Friday, while Disney’s stock surged more than 10%.
Shares of Roku (NASDAQ:ROKU) have taken a tumble over the past month, down 11% compared to a 3.4% gain in the Nasdaq Composite index. The catalyst has been a series of ROKU stock downgrades by the likes of Guggenheim, Macquarie and Citigroup (NYSE:C) analysts.News from Apple (NASDAQ:AAPL) about its plans to refocus on the services business, including TV streaming, while light on details, still made investors question the impact on ROKU. While the Los Gatos, California device maker may well have been the pioneer in TV streaming with its ROKU players and ROKU TVs, other entrants with substantial resources are entering the space in a big way. * 7 High-Risk Stocks With Big Potential Rewards Despite the past month's retreat, ROKU stock's YTD performance has been literally out of this world. It has blown past FAANG stocks and the major indexes by a huge margin. Before the wobbles in early March, ROKU stock was up well over 100% when investors (on the long side) were just happy to see the S&P 500 index bounce back 13%.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Pressure on ROKU Stock Meanwhile Roku hasn't been able to catch a break after Apple's announcement. It reported a strong fourth quarter with active accounts growing 40% over the prior year and streaming hours were up 69%.That was the past. Now, sell-side analysts have been citing excessive valuation, increased insider selling, and the company filing to sell stock, in a series of rating downgrades. In addition, competition is heating up. Beyond Apple TV, the Android TV operating system and Fire TV platform are real threats to ROKU. Android TV operator partners have increased to 140 from eight in 2016 .As Citi Research indicated in its note to clients,"With large numbers of pay TV providers and smart TVs directly integrating apps into their platforms, consumers may find fewer reasons to purchase OTT devices or use services like Roku."The fact is that the TV streaming space has changed in a big way since ROKU's 2017 IPO. ROKU's main source of revenue is advertising and their ability to data on consumer viewing habits is what helps them generate better value propositions for its advertisers. Their advertising platform is where the growth is, but new entrants will hurt this engine when advertisers start spreading their dollars to other platforms. Bottom Line on ROKU StockThe main problem is that there is no moat around ROKU's business, i.e., the barriers to entry are low for other players in the tech space. It's not difficult by any means to change a Roku dongle to an Apple dongle. While it may have a strong content offering at the moment, having recently announced a deal with HBO, that won't be enough for Roku to hold onto subscribers in the face of an onslaught of competition. * 8 Risky Stocks to Watch as Earnings Season Kicks Off Investor recognition that the future seems tenuous could account for the 3.8% decline in the ROKU stock price over the last five trading sessions. It may try to shrug off Apple as a non-threat, showing its double-digit growth figures from past quarters, but the threat it faces is real and its position as a one-stop-shop for free and premium entertainment is going to change. ROKU's platform is going to decrease in relevancy.As of this writing, Luce Emerson did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Internet Stocks to Watch * 7 AI Stocks to Watch with Strong Long-Term Narratives * 10 Dow Jones Stocks Holding the Blue Chip Index Back Compare Brokers The post Roku Stock Has A Target On Its Back As Apple Revs Up Its TV Engine appeared first on InvestorPlace.
[Editor's note: This story was previously published in February 2019. It has since been updated and republished.]Amazon (NASDAQ:AMZN) has been one of the more impressive stocks of the past 25 years. In fact, AMZN now has returned well over 100,000% from its initial public offering (IPO) price of $18 ($1.50 adjusted for the company's subsequent stock splits). A large part of the returns has come from two factors.First, Amazon has vastly expanded its reach. What originally was just an online bookseller now has its hands in everything from cloud computing to online media to groceries, and its shadow is even larger.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Marijuana Companies: Which Pot Stocks Should You Buy? Amazon's buyout of Whole Foods rattled the retail market. Similarly, its entry into healthcare by buying PillPack (as well as its healthcare partnership with Berkshire Hathaway (NYSE:BRK.B) and JPMorgan (NYSE:JPM))sent ripples through the healthcare sector.In response, Microsoft (NASDAQ:MSFT) teamed up with Kroger (NYSE:KR) to "build the grocery store of the future," and earlier this year announced a partnership with Walgreens (NASDAQ:WBA) to fend off Amazon.Second, as a stock, AMZN has managed the feat of keeping a growth stock valuation for over two decades. I've long argued that investors can't focus solely on the company's high price-earnings (P/E) ratio to value Amazon stock. But however an investor might view the current multiple, the market has assigned a substantial premium to AMZN stock for over 20 years now, and there's no sign of that ending any time soon.It's an impressive combination, and one that's likely impossible, or close, to duplicate. But these five stocks have the potential to at least replicate parts of the Amazon formula. All five have years, if not decades, of growth ahead. New market opportunities abound. And while I'm not predicting that any will rise 100,000% -- or 1,000% -- these five stocks do have the potential for impressive long-term gains.Source: Chris Harrison via Flickr (Modified) Square (SQ)Admittedly, I personally am not the biggest fan of Square (NYSE:SQ) stock. I like Square as a company, but I continue to question just how much growth is priced into SQ already.Of course, skeptics like myself have done little to dent the steady rise in AMZN stock. And valuation aside, there's a clear case for Square to follow an Amazon-like expansion of its business. Instinet analyst Dan Dolev has compared Square to Amazon and Alphabet Inc (NASDAQ:GOOGL, NASDAQ:GOOG), citing its ability to expand from its current payment-processing base:"In 10 years, Square is likely to be a very different company helped by accelerating share gains from payment peers and relentless disruption of services like payroll and human resources."Just as Amazon used books to expand into ecommerce, and then ecommerce to expand into other areas, Square can do the same with its payment business. The small business space is ripe for disruption, as out own Josh Enomoto points out. Integrating payments into payroll, HR, and other offerings would dramatically expand Square's addressable market - and lead to a potential decade or more of exceptional growth.Again, I do question whether that growth is priced in, with SQ trading 60% higher than this time last year. But if (again, like AMZN) Square stock can combine a high multiple with consistent, impressive, expansion, it has the path to create substantial value for shareholders over the next five to 10 years.Source: Daniel Cukier via Flickr JD.com (JD)In China, JD.com (NASDAQ:JD) is the company closest to following Amazon's model. While rival Alibaba (NYSE:BABA) gets most of the attention, it's JD.com that truly should be called the Amazon of China.Like Amazon (and unlike Alibaba), JD.com holds inventory and is investing in a cutting-edge supply chain. It, too, is expanding into brick-and-mortar grocery, like Amazon did with its acquisition of Whole Foods Market. A partnership with Walmart (NYSE:WMT) should further help its off-line ambitions. JD.com is even cautiously entering the finance industry.At the moment, however, JD stock is going in the exact opposite direction of AMZN. The stock has seen a slow recovery after last year's brutal plunge as the trade war and the arrest of the company's CEO killed all its gains. So have mixed earnings reports and a Chinese bear market. * 7 AI Stocks to Watch with Strong Long-Term Narratives Clearly, there are myriad risks here, although so far this year JD.com has corked its way well out of the doldrums of 2018. AMZN saw a few pullbacks over the years as well. And while JD may never rise to the scale of Amazon or even out-compete Alibaba, at its current valuation it doesn't have to.As investor confidence returns, JD has a path to enormous upside. The long-term strategy still seems intact, and likely the closest in the market to that of Amazon.Source: Shopify via Flickr Shopify (SHOP)Ecommerce provider Shopify (NYSE:SHOP) probably doesn't have quite the same opportunity for expansion as Square. And it, too, has a hefty valuation, along with a continuing bear raid from short-seller Citron Research.But I've remained bullish on the SHOP story, even though valuation is a question mark. Shopify is dominant in its market of offering turnkey ecommerce services to small businesses. That's exactly where consumer preferences are headed: small and unique over large and bland. And because of offerings like Shopify (and Amazon Web Services), those small to mid-sized businesses can compete with the giants.Meanwhile, Shopify does have the potential to expand its reach. Just 29% of revenue comes from overseas, a proportion that should grow over time. It's moving toward capturing larger customers as well through its "Plus" program, picking up Ford (NYSE:F) as one key client.The development of an ecosystem for suppliers and the addition of new technologies (like virtual reality) give Shopify the ability to offer more value to customers and to take more revenue for itself.Like SQ, SHOP is dearly priced and still climbing this year. SHOP has put on 42% since the beginning of the year. But both companies have an opportunity to grow into their valuations. And considering long runways for Shopify's adjacent markets, it should keep a high multiple for some time to come. As a stock, if not quite as a company, SHOP has a real chance to follow the AMZN formula for long-term upside.Source: Shutterstock Roku (ROKU)Roku (NASDAQ:ROKU) might have the best chance of any company in the U.S. market to follow Amazon's strategic playbook. The ROKU stock price is a concern. But perhaps even more so than Square, Roku now isn't what Roku is going to be in ten years.The hardware business is a loss leader, but one that allows Roku to serve as the gateway to content for millions of customers. As the company pointed out after recent earnings, it's already the third-largest distributor of content in the U.S. The Roku Channel is seeing increasing viewership. It's already up to more than 27 million viewers!The company offers pinpoint targeting of advertisements without the messy data problems afflicting Facebook (NASDAQ:FB). * 10 Dow Jones Stocks Holding the Blue Chip Index Back Roku is becoming increasingly embedded in TVs, though a deal between Amazon and Best Buy (NYSE:BBY) raised some fears about those software efforts going forward, and Disney's new streaming service could be an issue.It has a plan to roll out home entertainment offerings like speakers and soundbars, creating a long-sought integrated experience. It could even, as it grows, look to develop or acquire content itself, positioning Roku not as just a conduit to Netflix (NASDAQ:NFLX) but a rival.The bull case for Roku stock is that its players are like Amazon's books not a great business on their own, but a way to garner customers and get a foot in the door of the exceedingly valuable media business.What Roku does now that it has entered will determine the fate of ROKU stock. But the amount of options and still a somewhat modest market cap (under $5 billion) mean that betting on its strategy could be a lucrative play.Source: Workday Workday (WDAY)Workday (NASDAQ:WDAY) is starting to look like the enterprise software version of Amazon. Its core HR product has driven huge gains in WDAY stock, which now has a $36 billion market cap. But Workday is just getting started.The company previously announced that it would buy Adaptive Insights to build out its financial planning capabilities. It has already rolled out analytics and PaaS (platform-as-a-service) offerings that add billions to its addressable market.Here, too, valuation looks stretched, to say the least, but the story here still looks attractive. Workday is never going to be as famous as Amazon, or as large. But if its strategy works, it will be as important to, and as embedded with, its corporate customers as Amazon is with its consumers.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Companies That Could Post Decelerating Profits * 10 A-Rated Stocks the Smart Money Is Piling Into * Mizuho: 7 Long-Term Value Stocks to Buy Now Compare Brokers The post 5 Stocks That Could Be the Next Amazon appeared first on InvestorPlace.
Lyft (NASDAQ:LYFT) went public on March 28 at $72 a share giving the ride-sharing app a market cap of $20.6 billion right out of the gate. In the two weeks since LYFT stock has lost 18% of its IPO valuation. Now, Uber has filed its preliminary prospectus and looks to go public in May.Investors are left pondering which money-losing company to own; Uber, the market-share leader, or Lyft, the competitor nipping at its heels. InvestorPlace - Stock Market News, Stock Advice & Trading TipsHere's a clue: Do nothing! Buy neither. Invest in stocks that make money. Recent ExperienceLast weekend, my family gathered in Toronto to celebrate my mom's 85th birthday. Because there was going to be a bunch of us, we rented a condo downtown so we'd be close to the action. Uber was our ride of choice. Having lived in Toronto until February 2018, I was well aware of the ride-sharing app. My wife and I used it all the time. Then I moved to Halifax and, boy, do I miss it. My sister lives in Victoria, and before that Vancouver. Neither place has Uber. In one weekend, she's become a fan. Who's going to drive and treat their car more carefully than the actual owner? Most of the cabs I get into in Halifax smell someone's been sleeping in the back seat. No thanks. * 8 Risky Stocks to Watch as Earnings Season Kicks Off Lyft and Uber, they both make sense in a world where most taxi drivers hate their job. Sure, there are lots of stories about assaults, fake drivers, etc., and the companies must be held to account for these incidents, but there's no denying the concept itself is a good one. A Slight Financial ProblemI could swear people who buy IPOs like Lyft or Uber imagine themselves to be part-time venture capitalists. As if their ownership stake is going to make all the difference in the companies making money. I don't need even two hands to count the number of money-losing stocks I've recommended to readers over the years. I'd have to think about it to come up with the actual names: Tesla (NASDAQ:TSLA) and Roku (NASDAQ:ROKU) are two. After that, it gets difficult, but I'm sure there's a few that will come to me. Anyway, I don't believe regular investors who work in a job unrelated to finance, should be putting their hard-earned pay to money losers. The whole point of the stock market is to provide individuals with the opportunity to own profitable companies that are growing. A small piece of a bigger pie, if you will.It isn't for speculating on how big Lyft and Uber can become.As it stands right now, Lyft and Uber are exceptionally good at losing money, it's part of their unicorn DNA. By buying shares of either company's IPO, you're merely helping professional venture capitalists exit their investments.There are exceptions where early-stage investors hang on to their shares for an extended period after going public, but those are few and far between. If it were up to me, companies wouldn't be allowed to go public without GAAP profitability in the latest fiscal year. Leave the money-losing growth phase to private companies. I get that my idea defeats the point of raising capital on a public market, but if the SEC were really about protecting investors, they'd heed my words. $3.7 Billion in Operating Losses and CountingIn fiscal 2018, Lyft and Uber had operating losses of $688 million and $3.0 billion, respectively. That's an operating margin of -27%. Both prospectuses state that they may never make money. Ever. * 7 Biometric Stocks to Watch as AI Rises That would be like someone telling you that the house that you're about to buy from them is never going to appreciate. If you knew this, there is no way you'd buy it. Yet folks are lining up to buy the IPO shares. It's nuts. While the number of stocks listed on U.S. stock exchanges is shrinking -- falling from 7,300 in 1996 to 3,600 in 2016 -- there are still a large number of options available to investors. Many of them making money. Bottom Line on Lyft StockRecently, I poo-pooed the Levi Strauss (NYSE:LEVI) IPO, offering readers with seven reasons why I wouldn't touch it. Losing money wasn't one of them. Up 36% since March 20, investors who did buy shares get the last laugh. For now. I still believe its upside isn't nearly as rosy as analysts feel it is, but at least it makes money. Buy those kinds of IPOs. Unless you have a fun fund, don't buy the Lyft or Uber kind. The wait for profitability will kill you.At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Internet Stocks to Watch * 7 AI Stocks to Watch with Strong Long-Term Narratives * 10 Dow Jones Stocks Holding the Blue Chip Index Back Compare Brokers The post Do You Bet on Money-Loser A (Lyft Stock) or Money-Loser B (Uber)? appeared first on InvestorPlace.
Disney's (DIS) streaming service Disney+ will be available to U.S. customers on Nov 12, 2019 at $7/month or $70/year, which is lower than Netflix's plan.
Last November, I suggested that Roku (NASDAQ:ROKU) stock would bounce back. I stated that "investors are making a mistake dumping ROKU after its recent earnings report."Source: Roku Since then, Roku stock has roared higher, moving from the low $40s to as high as $74 recently. However, since reaching $74, bullishness towards ROKU stock has waned a bit, and ROKU stock is now trading around $60. * 7 Marijuana Companies: Which Pot Stocks Should You Buy? Tara Lachapelle of Bloomberg Opinion put it well. As she noted, the latest selloff is not a function of business performance, but rather extremely hot investor sentiment that had bid Roku stock up a tremendous amount over the past couple months.InvestorPlace - Stock Market News, Stock Advice & Trading TipsLachapelle wrote that: "Shares of Roku Inc. have taken a beating the last few days amid a string of analyst downgrades. But shareholders can take some comfort in knowing that this was more a function of an overheated stock price than a sudden change in the TV-streamer's business trajectory."I agree with her. But that does raise a question: While Roku stock was cheap in November and expensive last month, what's the right play on it today? The Cons of Roku StockIs Roku Stock Even More Expensive Than Netflix? Bloomberg's Lachapelle noted that, by one metric, Roku stock is even more expensive than Netflix (NASDAQ:NFLX). Based on enterprise value/EBITDA, which is a popular metric for analyzing companies that do not yet have significant accounting profits, Roku stock looks exceptionally expensive.Roku stock is trading at an EV/EBITDA ratio of more than 500, whereas Netflix's EV/EBITDA ratio is 47. That doesn't make Netflix cheap; an EV/EBITDA of ten is considered normal, and Bloomberg reported that the current average EV/EBITDA ratio in the media industry is just nine.So, based on this metric, it appears that Roku is generating relatively little income or cash flow at the moment.Heavy Competition: Roku's pivot from selling hardware to hosting a software and viewing ecosystem comes with some major perks. But it also carries big risks. In theory, there is a huge market for Roku's offerings, such as its ad-supported channel, among cord cutters who want to save money.In practice, though, there are a ton of cheap streaming-video offerings that cost far less than cable. Amazon's (NASDAQ:AMZN) standalone TV offering is growing and pairs nicely with its Amazon Fire TV Stick, which is a direct competitor to Roku.Microsoft's (NASDAQ:MSFT) XBox, Sony's (NYSE:SNE) Playstation, and Apple's (NASDAQ:AAPL) Apple TV are other products that are used by a meaningful number of consumers to access streaming-video content. ROKU is competing in a highly profitable field, but it is up against quality rivals.Short Sellers Have Taken Profits: One of the big catalysts for the rally of Roku stock earlier this year was an aggressive short squeeze. At one point, short sellers had shorted 40% of Roku's float That's a tremendous number, among the highest you'll see for a decent-sized NASDAQ company . When so many shares of a stock are being sold short, the shares can soar relatively easily.However, those shorting Roku stock appear to have played their hand well. As Roku stock has fallen 20% in recent weeks, the those shorting ROKU have taken profits. As a result, the short interest of Roku stock as a percentage of its float is down from 40% to 11.4% now. This indicates that most short sellers took profits without driving Roku Inc stock back up. Now, if ROKU reports good news, any short squeeze of Roku stock will be much weaker. The Pros of Roku StockBased On Sales, Roku Inc Stock Is Not So Expensive: Based on any one metric, it's easy to make young companies look expensive. Bloomberg's assertion that Roku Inc stock is expensive due to its high EV/EBITDA ratio is a fair point. But it's not a be-all and end-all analysis.Take a look at Roku's price-sales ratio. Traditionally, for fast-growing tech companies with strong prospects, a P/S ratio of ten is generally considered fair. Due to the huge swings in Roku Inc stock as of late, the P/S ratio has swung between 5 and 11. Only at the very top end of that range would Roku stock potentially look too expensive. For what it's worth, NFLX stock's P/S ratio is 9.9, while that of ROKU has dipped back to 8.5. Based on price-sales ratio, Roku's valuation look reasonable and maybe even a touch cheap.Roku Is Getting Close To Break-even: By evaluating Roku's earnings, we can see that things are looking up for the company. Remember that Netflix and many of its peers were unprofitable or only marginally EPS positive for many years. Yet their share prices still increased as their growing revenues made up for their low profitability. The important thing, however, for tech companies is not to burn so much cash as to end up having to take on heavy debt or dilute their stocks to keep their operations rolling.In Roku's case, management predicts that its 2019 losses will come in around $86 million on around $1 billion of revenues. That's a net profit margin of around negative 8.6%, which isn't too bad, and is way better than in prior years. Additionally, based on current trends, ROKU would approach overall break-even in 2020 . It would likely be profitable in both Q1 and Q4.The Switch From Hardware to Services Is a Plus: In my articles, I often warn investors to be skeptical of tech companies that are reliant on hardware sales. It's hard to make consistent profits on hardware, as competition is so fierce, and prices tend to plunge once competitors copy the better parts of leading products.As a result, Roku's move towards services and advertising, if a bit rocky, has been well-received by Wall Street. Since the transition, many of Roku's metrics are steadily improving, with viewership of the Roku Channel rising and average revenue per user increasing. Roku's new business model is healthy, and its results will improve further as its viewership rises. Wall Street will give ROKU high valuations if its growth continues. The Verdict on Roku StockIf you like Roku's outlook, the recent dip of Roku Inc stock could make it worth buying again. Although Roku's EV/EBITDA ratio is very high, the truth is more complicated. Based on other metrics, such as Price/Sales, it's not hard to justify Roku's current stock price.Still, the company appears to be several years away from strong profitability. Analysts have gotten nervous, with four firms, including Citi and Guggenheim, downgrading the shares over the past month. And Roku will report its earnings again in May. For now, I'd keep watching Roku Inc stock from the sidelines.At the time of this writing, Ian Bezek held no positions in any of the aforementioned securities. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Internet Stocks to Watch * 7 AI Stocks to Watch with Strong Long-Term Narratives * 10 Dow Jones Stocks Holding the Blue Chip Index Back Compare Brokers The post Should You Buy Roku Stock? 3 Pros, 3 Cons appeared first on InvestorPlace.
Walt Disney Co (NYSE:DIS) held a special event for investors yesterday, where it revealed details about its forthcoming Disney+ video streaming service. The company announced aggressive pricing that undercuts market leader Netflix (NASDAQ:NFLX), confirmed the service will be ad-free, and set the launch date: Nov. 12. Disney stock is up nearly 10% Friday morning.Source: Shutterstock Besides Disney's classic movies and content from the company's Marvel and Star Wars properties, thanks to Disney's acquisition of Fox, Disney+ will be the only streaming service where consumers can watch The Simpsons -- all 30 seasons of it. Disney Announces Disney+ Launch Date and PricingOn April 11 at the company's Investor Day event, Disney revealed all the details on its highly anticipated new video streaming service.InvestorPlace - Stock Market News, Stock Advice & Trading TipsDisney+ will launch in the U.S. on Nov. 12, with plans to eventually hit every major global market. The price will be $6.99 per month, which significantly undercuts the $8.99 monthly Netflix charges for its Basic plan, and the streaming will be ad-free. Viewers can save even more by opting for a yearly payment of $69.99, which brings the monthly rate below $6. * 7 Marijuana Companies: Which Pot Stocks Should You Buy? Even better for serious cord cutters, DIS executives confirmed the company will "likely" offer a discounted bundle of its streaming services: Disney+, ESPN+ and Hulu (which Disney now owns a controlling stake in). Deep Library + New ProgrammingThe company says Disney+ will feature content from all of its brands including Disney, Pixar, Marvel, Star Wars and National Geographic. With the acquisition of Fox, Disney's video library is even deeper than before, and viewers will also find Fox content including the entire collection of The Simpsons.In addition, at Thursday's event there was a long list of original programming announced from virtually all of the company's divisions -- 25 original series, 10 original movies and additional documentaries and specials.Highlights include The Mandalorian (the first live-action Star Wars series), Loki (based on Marvel's Thor movies), The World According to Jeff Goldblum from National Geographic, Monsters at Work (a Monsters Inc. spinoff series), and The Phineas and Ferb Movie.In all, between the Disney and Fox libraries and the new content DIS is ramping up, Disney+ is expected to feature over 7,500 TV episodes and 500 movies at launch. Streaming PartnersFor a streaming service to be successful, it needs to have hardware partners. Even if that means overlap with competitors -- just look at the jostling between Netflix and Apple (NASDAQ:AAPL) to see how complicated that relationship can be.Disney says that beside being able to watch Disney+ on a smartphone or tablet, it has inked deals with Roku (NASDAQ:ROKU) and Sony (NYSE:SNE) to support the streaming service on their hardware. Other devices are still in the negotiation stages. Although it wasn't officially announced, Disney later confirmed to Bloomberg that Disney+ is expected to be coming to the Apple TV as well -- despite being a potential competitor to Apple's own new Apple+ video streaming service. An Expensive UndertakingWhile DIS investors are looking at the company's streaming plans to drive up revenue and boost DIS stock, Disney+ is also an expensive venture.Disney says that by 2024 it is hoping to hit somewhere between 60 million and 90 million subscribers, along with profitability for the service. In comparison, Netflix now has 139 million subscribers. To get there, Disney expects to spend over $1 billion on original programming in fiscal 2020, rising to $2 billion by 2024.In addition to expenditures, there is the foregone revenue. By pulling content such as its Marvel movies from rival services, Disney is losing out on roughly $150 million in licensing revenue for fiscal 2020. Bottom Line on Disney StockWhat was the market reaction to the Disney+ details? Disney stock itself spiked early Thursday morning in anticipation of the announcements but ended the day down by 0.45%, while Netflix stock actually gained 1% on the day. On Friday, DIS shares are trending higher by roughly 10%. With Thursday's big reveal of pricing and release date behind us, the next thing investors will be looking at is how many subscribers sign up when the service launches. And we'll have to wait until after Nov. 12 to learn that …As of this writing, Brad Moon did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Internet Stocks to Watch * 7 AI Stocks to Watch with Strong Long-Term Narratives * 10 Dow Jones Stocks Holding the Blue Chip Index Back Compare Brokers The post Disney Stock Soars on Disney+ Launch Date and Pricing appeared first on InvestorPlace.
Several sources have announced that Stitch Fix (NASDAQ:SFIX) will lose one of its top executives. Chris Phillips, who heads men's and kids' clothing, will leave Stitch Fix to become CEO of Mizzen+Main. What effect, if any, this change will have on Stitch Fix stock remains unclear.Source: Stitch FixHowever, it may serve as a reminder of the competitive challenges that could threaten the company in the future. Stitch Fix's SuccessPut simply, I would not trade Stitch Fix stock based on Mr. Phillips leaving the company. Traders seem to agree. Despite this news, SFIX barely moved in Tuesday trading following the report.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, does this mean other clothing companies want to draw on the knowledge of Stitch Fix executives to compete using technology? Perhaps.Admittedly, using artificial intelligence (AI) to choose clothing based on a customer's individual preferences sounds compelling on the surface. Consequently, Wall Street forecasts revenue growth of 26.6% this year and 21.3% in 2020.Earnings also turned positive last year. Though profits will likely fall this year, analysts expect earnings growth of 22.7% next year, and earnings increases averaging 46.7% per year in later years.This growth has probably helped drive SFIX's multiple to elevated levels. Stitch Fix stock now trades at almost 99 times forward earnings. I urge caution at such multiples, even when justified by a firm's growth. However, this valuation does not necessarily mean Stitch Fix will fall. Can Stitch Fix Compete?The personnel change possibly speaks to a more significant concern about rising competition. I see little that would stop a Macy's (NYSE:M), Amazon (NASDAQ:AMZN), or now, Mizzen+Main, from offering a similar service. In fact, Nordstrom (NYSE:JWN) acquired an AI-based clothing selection system when it bought Trunk Club in 2014. However, Nordstrom later wrote down much of the value in Trunk Club.To its credit, Stitch Fix has built a competitive moat by bringing more than 1,000 brands into its ecosystem. Despite its reach, I would caution against viewing SFIX as the Roku (NASDAQ:ROKU), or the neutral arbiter of the clothing industry.I think my colleague Laura Hoy described the approach of Stitch Fix well in her comparison of the company to Blue Apron (NYSE:APRN). Like with Blue Apron in sending food items, I can see customers having reservations about SFIX sending clothing based on an AI-based assessment of one's clothing tastes.I also share Ms. Hoy's concerns about a service like this becoming a novelty. Stitch Fix's data offers a competitive advantage. However, I do not think it will permanently prevent customers from seeking self-driven choices outside of the Stitch Fix ecosystem. Until the company can prove that it can keep most of its customers, I would not recommend paying a premium valuation for SFIX stock. The Bottom Line on Stitch Fix StockThe departure of Chris Phillips to another company will not materially affect SFIX stock, but it does speak to the competitive dangers facing the company.SFIX remained largely unchanged in trading following the news. The company continues to drive consumer interest, revenue growth, and increasing profits with AI-based clothing choices.However, Nordstrom already uses the same type of technology. Other firms, including the one where Mr. Phillips will take over as CEO, could follow suit. Moreover, many consumers will probably not want machines making their clothing choices. Others may use it for a time and then switch back to more traditional shopping methods.Stitch Fix continues to manage itself well on the financial front. However, given the likely challenges in keeping customers in the Stitch Fix ecosystem long term, I see Stitch Fix stock as a trade at best.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * FAANNG Stocks, Ranked From Cheapest to Most Expensive * 7 Stocks With a Lot on the Line This Earnings Season * 7 Marijuana Companies: Which Pot Stocks Should You Buy? Compare Brokers The post Stitch Fix Stock Is Beginning to Look a Lot Weaker appeared first on InvestorPlace.
Walt Disney Co priced its highly anticipated streaming video service below Netflix in an aggressive move to challenge the dominant streaming service and entice families to buy yet another monthly subscription. Disney said on Thursday its new family-friendly streaming service will cost $7 monthly or $70 annually with a slate of new and classic TV shows and movies from some of the world's most popular entertainment franchises in a bid to challenge the digital dominance of Netflix. The ad-free monthly subscription called Disney+ is set to launch on Nov. 12 and in every major global market over time, the company said.
You have to give Roku (NASDAQ:ROKU) credit. In the shadow of not one but two downgrades that both made mention of burgeoning threats from Apple (NASDAQ:AAPL), Roku forged ahead with plans that exacerbate the threat. Whether it gives Roku stock a little more breathing room remains to be seen.Source: Shutterstock While Apple's video ambitions appear to finally be inclusive of other services and platforms, Roku is looking to elbow rival content providers out. Some observers called it an outright switch to non-neutral platform. The point is well taken too. The popularity of the company's streaming devices was driven by their ease-of-use. That's changed, though Roku's set-top boxes still readily work with almost all apps.Still, even a watered-down shift in how the company treats its partners may flag major changes in how investors should evaluate Roku stock going forward.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Dow Jones Stocks Holding the Blue Chip Index Back Roku Stock and the New InterfaceThe new mindset was unveiled via a blog post on Tuesday. With the update to Roku OS 9.1, eligible devices will see a different interface when they use the Roku Search feature. Now, the results will look a lot like a Netflix (NASDAQ:NFLX) search results screen, grouped as (from the top down) New Categories, Free, then Rent or Buy.The Free group is where Roku has shaken things up the most. Free content was never actually free for consumers. It was ad-supported, or available through a traditional subscription to cable television, or both. Roku's own contracted ad-supported content is now seamlessly, quietly injected into the Free suggested results of a user's search.In that same vein, a playback of a missed movie or program will only occur if and when that content becomes available through The Roku Channel, or unless a user specifically requests that content be provided by a third party.It's hardly sinister, but it does prompt questions about Roku's plans for the future less than a year after the company's ad revenue eclipsed hardware revenue. Apple TV+ and Roku StockThe move further blurs lines other players have been willing to blur anyway. Apple is chief among the recent blurrers.Last month, the consumer-tech giant unveiled what it's calling Apple TV+, which is essentially a wrapper than combines the company's home-grown content into a platform that also pipes in a consumers third-party subscriptions.It's not a direct threat to Roku, but indirectly it presents another reason for consumers to skip a purchase of Roku hardware altogether, which is the key means of generating ad revenue. Guggenheim and Citi each downgraded an already-expensive Roku stock on the sheer uncertainty of Roku's future marketability.Guggenheim's Michael Morris also made a point of mentioning Amazon.com (NASDAQ:AMZN) and its foray into advertising video on demand (AVOD). The ecommerce behemoth has already launched such a service, in fact, but is reportedly interested in expanding its venues.The AVOD sliver of the business has far from gelled. Indeed, the subscription-based side of the streaming industry is still in flux; it's still not entirely clear what the best way to approach it is. Still, to the extent that market can be forecasted, Digital TV Research estimates that part of the industry will drive $47 billion in annual revenue by 2023, or one-third of the video-on-demand market, versus 2017's $27 billion.It's too soon to say where Roku stands in its effort to capture a piece of that pie, before or after the update to Roku OS 9.1. Bottom Line for Roku StockRoku's move away from complete neutrality isn't necessarily a swing to the complete other end of the spectrum. It's somewhere in between, and much less dramatic than some headlines suggested.Never mind that Roku stock was downgraded by two different analysts on the advent of Apple TV+. If not Apple, another VOD player was going to do something like it. Indeed, other players were and still are blurring the lines between message and messenger. That was never not going to be the case. Roku is simply doing the same.The key here is figuring out how effectively Roku is going to inject some self-serving options into its interface. It can easily do this if it does so gently without irritating users. If it pushes to hard, they'll revolt and look for other streaming VOD boxes in the future. It's not the black-and-white matter it's being made out to be at least not yet.Whatever the future holds, somehow it seems likely Roku knows it's better served by not over-promoting itself at the expense of all the content providers it relies on. This selloff may prove to be a nice entry opportunity.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Best Dividend Stocks to Buy for Every Investor * 7 Catalysts That Will Send Marijuana Stocks Soaring in 2019 * 8 Risky Stocks to Watch as Earnings Season Kicks Off Compare Brokers The post Recent Downgrades Present a Real Opportunity in Roku Stock appeared first on InvestorPlace.
Reportedly, Netflix (NFLX) stops supporting Apple's AirPlay on iOS app due to the latter's decision to add the technology to other smart TVs.
The market's downturn this week has put more than a handful of stocks on sale. And some recognizable names within the technology and services sectors have turned up on our radar, for better or worse. These include Snap (NYSE:SNAP), Roku (NASDAQ:ROKU), Disney (NYSE:DIS) and Electronic Arts (NASDAQ:EA). Snap Inc (SNAP)Snap stock has been riding a bullish wave this year as it regains its footing after a rocky initial public offering (IPO) in spring 2017 and a brutal conclusion to 2018, where it joined the dip in most other stocks in the market. But with constantly improving fundamentals and a few possible catalysts on the horizon in 2019 and beyond, including strong viewership in original programming, some analysts expect Snap stock to regain its IPO price of $17 this year (roughly 35% upside from current prices). RBC Capital Markets echoed bullishness for SNAP Monday morning, stating:"SNAP's monetization potential has been part of the Bull Pitch since the IPO. And that potential remains significant, with Snap generating one-third of TWTR's monetization (in terms of Global Ad Revenue per DAU) and one-fifth of FB's monetization. What is key is that SNAP has been showing a nicely improving monetization level over the past two years."InvestorPlace - Stock Market News, Stock Advice & Trading TipsShares of Snap jumped 4.5% in early morning trading because of the positive outlook from RBC. Clearly, things are turning around for SNAP at the moment, but whether it can maintain this momentum is still to be determined. Investors should continue warming up to the stock the more Snap Inc can prove that it can go toe-to-toe with its competition. Roku (ROKU)Unlike Snap, streaming hot-shot and smart TV designer Roku has experienced a more difficult time wooing investors of late. * 8 Risky Stocks to Watch as Earnings Season Kicks Off Down roughly 15% in the past 30 days, Roku stock has suffered because investors are starting to question its ability to take on high-level competitors like Amazon (NASDAQ:AMZN) and Apple (NASDAQ:AAPL).Roku stock gave back 4% Monday after Citi downgraded it from "neutral" to "sell," and it's down another 40 basis points Tuesday. Although ROKU stock is reaching a crossroads, some analysts are still optimistic in its ability to hold strong in the long run. But in the short-term, Roku stock will likely suffer. Disney (DIS)Disney has been having a pretty good year, but its stock price hasn't reflected that (up 8% from its January low). Captain Marvel broke the box office, bringing in more money than Deadpool and The Dark Knight. Importantly, Captain Marvel's success was carried on the backs of an international audience. With Avengers: Endgame nearing release -- and already breaking box office presale records -- the international haul of Marvel is a sign of what to expect for Endgame. Some people are even paying $15,000 per ticket!But the catalyst we're watching this week is Disney's Investor Day, which takes place Thursday. Here we'll find out more about Disney's Netflix (NASDAQ:NFLX) counterpunch, Disney+, and potentially more big streaming market news regarding Hulu. Analyst group Cowen upgraded DIS stock to an "outperform" and set its new price target at $131, an increase of 13% from today's stock price.According to Cowen, "Disney has a very powerful pipeline of product that will play out over the balance of the year." The analyst specifically cites Star Wars: Galaxy's Edge -- a domestic park opening this summer -- as a strong catalyst for growth in the second half of the year. Electronic Arts (EA)Finally, investors have been paying more attention to Electronic Arts lately as its new and already extraordinarily popular Apex Legends title has presented itself as a promising alternative to Fortnite. This comes after several high-profile disappointments like its highly anticipated Battlefield 5 in November 2018 and Anthem, which was released Feb. 22, 2019.However, the bullish momentum in EA stock has come to a halt recently after the Federal Trade Commission set a date for its workshop on the highly profitable loot box microtransaction system in video games. The workshop is set for Aug. 7 and could prove to be a dent in an otherwise stellar comeback for EA stock this year.As of this writing, Robert Waldo did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 Data Center Buys That Deliver Sizable Income * 7 High-Risk Stocks With Big Potential Rewards * 3 Marijuana Stocks to Watch as New York, New Jersey Delay Legalization Compare Brokers The post Top Services & Multimedia Stocks to Watch This Week appeared first on InvestorPlace.
Roku (NASDAQ:ROKU) continues to grow with the streaming industry it helped Netflix (NASDAQ:NFLX) pioneer, helping to take Roku stock close to record levels in recent weeks..Source: Roku Roku's boxes have become a critical component of bringing streamed media to televisions. Moreover, the company's ad-based platform has created an ecosystem that the largest companies in tech have not matched. * 8 Risky Stocks to Watch as Earnings Season Kicks Off However, Roku stock has stagnated since the second week of March. Although prospects for Roku Inc. continue to improve, Roku stock could continue to struggle to move higher in the near-term.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Roku Continues to Stream GrowthFrom a business perspective, the long-term future appears bright for Roku stock and the company as a whole. Surveys indicate that Roku has become the dominant streaming player. That's not surprising, since ROKU pioneered this industry.Also, unlike Amazon's (NASDAQ:AMZN) Fire TV or Apple's (NASDAQ:AAPL) new Apple TV+, Roku is not biased toward one service. Roku's status as a neutral platform helped to make the company the biggest beneficiary as consumption of streamed content more than doubled in 2018.Moreover, ROKU continues to derive more of its revenue from ads, using hardware to keep customers in the Roku ecosystem. The company can more easily sustain a competitive moat and long-term growth by relying on an ad-dependent revenue model rather than just hardware. Such ad-based revenue models have bolstered both Roku and that of many other tech companies. Many Remain Bullish on RokuHowever, despite the company's bright long-term prospects, investors trying to profit from Roku stock could face challenges . At the beginning of the year, I warned investors to wait for the charts to show that the selloff of Roku Inc stock had indeed ended before buying ROKU.At that time, ROKU traded in the $30 per share range. A few days later, the Consumer Electronics Show took place, and that helped to inspire a wave of buying, causing the stock price to more than double. ROKU Inc stock would reach as high as $74.35 per share on Mar. 11 before pulling back.As Roku Inc stock has risen, more analysts have turned bullish on Roku stock. InvestorPlace's Bret Kenwell sees ROKU as an M&A candidate. He also has the intriguing idea that Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) should acquire the company. He cites Alphabet's cash reserves and the synergies with Google's ad business as two of the reasons for his belief.InvestorPlace contributor Luke Lango points to what he sees as the improving technicals and reasonable valuation of ROKU. His 2019 price target for Roku Inc stock is around $75 per share. When looking at the long-term picture, I agree with my colleagues that Roku Inc stock will move higher. However, Roku's short-term prospects do not look as bright. ROKU Likely Faces a Double TopRoku trades around $61 per share today. Back in October, Roku stock topped out in the mid-$70s per share range before beginning its plunge over the next three months. With the retreat from the same levels in March, it appears we may have witnessed a double top.Moreover, the fundamentals look less favorable to buyers than they did at the beginning of the year. Roku Inc stock traded at about five times its sales in early January. ROKU's trailing-price-sales ratio today stands at about nine.I would not necessarily assume that ROKU will fall back to its December lows. Still, ROKU will probably need a catalyst of some kind to move beyond its current price-sales ratio. Unfortunately for ROKU bulls, the announcement of Roku's partnership with Apple (NASDAQ:AAPL) only stemmed the downward trend temporarily. If such news cannot propel ROKU higher, I do not know what will in the near-term. The Bottom Line on Roku StockUnlike the company, Roku stock could struggle to grow in the near-term. The triple-digit growth rate of streamed-content consumption benefits ROKU as a company. However, Roku stock appears to have hit a double top. Now trading at nine times sales, it seems to lack the catalyst needed to rise above the mid-$70s per share level.Much like I stated in January, investors should wait for another sustained rally before buying Roku Inc stock. Unfortunately for ROKU bulls, prospective buyers will probably have to wait more than a few days to see that rally this time.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Medical Marijuana Stocks to Cure Your Portfolio * 8 Best Stocks to Buy for an April Rally * Top 20 Stocks to Buy for 20-Somethings! Compare Brokers The post Roku Stock May Stream Difficulties Despite Massive Growth appeared first on InvestorPlace.
U.S. stock futures are crawling lower this morning. If the early weakness is reversed and the S&P 500 can close green today, it will be the ninth up day in a row.Ahead of the bell, futures on the Dow Jones Industrial Average are down 0.26%, and S&P 500 futures are lower by 0.26%. Nasdaq-100 futures have shed 0.27%.Put volume all but disappeared in the options pits yesterday. With eight consecutive up days, fear has officially left the building. Specifically, about 16.2 million calls and 11.7 million puts changed hands on the session.InvestorPlace - Stock Market News, Stock Advice & Trading TipsCuriously, the dramatic drop in put activity didn't translate over to the CBOE, where the single-session equity put/call volume ratio lifted to 0.68 -- a two-week high. The 10-day moving average continues to drift at 0.62.Here are three of the hottest stocks in the options market. New Age Beverages (NASDAQ:NBEV) surged 39% after announcing a national distribution deal with Walmart (NYSE:WMT). Boeing (NYSE:BA) gapped lower after reporting production cuts amid the ongoing fallout from the recent crashes of its 737 MAX aircraft. Finally, Roku (NYSE:ROKU) slipped 4.2% after a Citi analyst downgraded the company on valuation worries.Let's take a closer look: New Age Beverages (NBEV)New Age Beverages made its first appearance atop the most-active options board Monday on news that Walmart will begin offering its Marley Mate drink. The natural beverage company surged 39% on 66 million shares amid widespread euphoria over the deal, which is the company's first involving national distribution. * 8 Risky Stocks to Watch as Earnings Season Kicks Off On the price front, NBEV now sits atop all major moving averages. Shareholders are hoping Monday's moonshot is the catalyst for a new uptrend. $7.80 and $9 are the next two upside targets. Both levels acted as strong overhead resistance over the past year.In the liquidity department, NBEV stock options are quite active. It has Weeklys available and large enough open interest to make it a viable trading candidate. Call volume exploded yesterday. Activity ballooned to 1,200% of the average daily volume, with 105,502 total contracts traded. 78% of the trading came from call options alone.The news breathed new life into implied volatility, which had been dwindling near its one-year low. By day's end, it had jumped from 83% to 108%. Boeing (BA)Two negative news items conspired to upend last week's recovery attempts in Boeing shares. The struggling airliner fell 4.4% on Monday after admitting fault in the two recent crashes of its 737 Max airplane. Additionally, they announced a reduction in their production schedule from 52 planes per month to 42.Here are the two key quotes from the company's press release on Friday after the bell."We now know that the recent Lion Air Flight 610 and Ethiopian Airlines Flight 302 accidents were caused by a chain of events, with a common chain link being erroneous activation of the aircraft's MCAS function.""We have decided to temporarily move from a production rate of 52 airplanes per month to 42 airplanes per month starting in mid-April,"On the options trading front, activity wasn't as elevated as I would have thought. The total grew to 113% of the average daily volume, with 232,663 total contracts traded. Puts only accounted for 46% of the total.The increased demand drove implied volatility higher on the session to 33%, placing it at the 45th percentile of its one-year range. Premiums are pricing in daily moves of $7.90, or 2.1%. Roku (ROKU)This year's meteoric rise in Roku was bound to overheat. Such is the fate of all stocks that fly too close to the sun. The latest news taking a bite out of its recent gains was an analyst downgrade from Citi. Mark May downgraded the stock to sell and dropped his price target from $53 to $50. Compared to ROKU stock's closing price of $60.73, that marks an 18% reduction.Mr. May's worries were centered around the stock's sky-high valuation and increased competition in streaming video by Apple (NASDAQ:AAPL) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL).The down gap resulted in the first test of ROKU's 50-day moving average since this year's ascent began. Fortunately, buyers emerged to defend their turf, and the stock ended with a bullish hammer candle.On the options trading front, calls outpaced puts despite the day's thrashing. Activity climbed to 136% of the average daily volume, with 98,956 total contracts traded. 53% of the trading originated with calls.The ongoing rise in implied volatility has now lifted the reading into overpriced territory. At 78% it sits at the 59th percentile of its one-year range. Pumped-up premiums are now baking in daily moves of $3 or 5%.As of this writing, Tyler Craig didn't hold a position in any of the aforementioned securities. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Medical Marijuana Stocks to Cure Your Portfolio * 8 Best Stocks to Buy for an April Rally * Top 20 Stocks to Buy for 20-Somethings! Compare Brokers The post Tuesday's Vital Data: New Age Beverages, Boeing and Roku appeared first on InvestorPlace.
Other analysts from Guggenheim Securities LLC, Macquarie Group Ltd. and Loop Capital Markets also lowered their ratings in recent days and weeks to “neutral” or “sell.” All cited the company’s valuation as a significant factor. There are certainly some outlandish stock-price multiples in the technology and media industries, but Roku makes even Netflix Inc. – valued at 47 times Ebitda – look almost sensible. Roku has been a volatile stock ever since its market debut about 18 months ago.
The market has been hot lately, so Monday's chill session shouldn't be a surprise. In fact, bulls may even consider this sleepy session a victory given that the market continues to hold onto its gains relatively well. Let's look at a few must-see stock trades. Must-See Stock Trades 1: New Age BeveragesAn expanding partnership with Walmart (NYSE:WMT) has New Age Beverages (NASDAQ:NBEV) racing higher Monday, up more than 32%.InvestorPlace - Stock Market News, Stock Advice & Trading TipsShares are running into and pulling back from its 38.2% retracement for the 52-week range. It would be encouraging to see it now hold the 50-day moving average and retry this level. Whether that second attempt comes tomorrow or next week, a move to $7.50 could eventually be in the cards should it give way. * 5 Data Center Buys That Deliver Sizable Income Despite the big move, shares are not yet technically overbought. If we get a slight pullback Tuesday morning that quickly goes green, that could pave the way to a quick bullish day trade. If NBEV holds up through the session, it may turn into a long swing trade. Must-See Stock Trades 2: Bank of AmericaThis one was looking wonderful as it broke out over $29.50, but then quickly unwound those gains by falling 10% in just a few days. We've had our eye on Bank of America (NYSE:BAC) and now that it's back in its range, it's worth looking at again.Shares are pulling back off range resistance, but could again trigger a breakout over $29.50. Investors may be a little gun shy this time around on a breakout given what happened last time. As such, they may rather buy a pullback into the $28 to $28.50 level. Below $28 and BAC is a no-touch. Must-See Stock Trades 3: Russell 2000 ETFThe Russell 2000 ETF (NYSEARCA:IWM) is not exactly leading to the upside vs. its other index peers. However, it's looking much better than it was a few weeks ago.In late-March, the 50-day moving average was giving way as support and the 200-day moving average was holding as resistance. Channel support was keeping the name in check and a larger correction was in question.However, the ETF has powered through channel resistance and the 200-day moving average has given way. We now need to see this $157.50 to $158.50 area give way to really let the IWM gallup higher.I love that the index isn't overbought and many names are still well below their highs going into earnings. We're seeing a rotation out of high octane growth names, but other areas are picking up the slack. Seeing the IWM pullback/consolidate a bit more ahead of earnings would be potentially bullish as well. Watch the $153 area as a key support level should the IWM correct. Must-See Stock Trades 4: The Trade DeskSo what growth names are taking a rest? The Trade Desk (NASDAQ:TTD) is certainly one, while investors can lump Roku (NASDAQ:ROKU) and Twilio (NYSE:TWLO) on the list as well.For TTD, a pullback to $180 could be bought as a solid risk/reward setup. Should it get there, the 50-day moving average, uptrend support and prior support should all play a role. Below opens the door to $160.It's a bit concerning that the stock put in a lower high, but after such a massive run, it was bound to happen at some point. It doesn't change the fact that TTD is one of the market's strongest growth names. Must-See Stock Trades 5: General ElectricA downgrade from key analyst Stephen Tusa of JPMorgan has shares of General Electric (NYSE:GE) reeling, down 6% on the day.Below $9.50 and GE looks destined for sub-$9. Earnings should be due up later this month, causing some investors to consider locking in short-term gains ahead of the quarter. That said, it's an interesting dynamic as some shorts may want to cover given what new CEO Larry Culp has been able to say to impress investors over the past few months. * 7 High-Risk Stocks With Big Potential Rewards If the 61.8% retracement can't support GE, $7.50 could eventually be on the table.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long ROKU. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 Data Center Buys That Deliver Sizable Income * 7 High-Risk Stocks With Big Potential Rewards * 3 Marijuana Stocks to Watch as New York, New Jersey Delay Legalization Compare Brokers The post 5 Must-See Stock Trades for Tuesday: TTD, GE, BAC, IWM, NBEV appeared first on InvestorPlace.