|Bid||63.50 x 1000|
|Ask||63.75 x 1100|
|Day's Range||63.26 - 67.20|
|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||67.41|
The announcement -- which will detail a plan that Apple has been dropping hints about for weeks -- is unlikely to be a game changer for Apple or its competitors, according to analysts who said it would be hard for Apple to match video-streaming rivals in the breadth of original content it offers. “In order to move the needle with services such as video, Apple would need to add a business several times the size of Netflix,” wrote Raymond James analyst Chris Caso in a March 14 note.
Never let it be said analysts are afraid to voice changes in their opinions of Roku (NASDAQ:ROKU). Just within the past week, Roku stock has been upgraded twice, and downgraded twice, with each change pushing the stock around.Source: Shutterstock No big deal. That's what changes in analysts' ratings do.Take all the upgrades and downgrades with a grain of salt though. They're always interesting and usually insightful. More than anything though, the updated analyst stances are irrelevant.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThis remains a story stock, even if the pros are treating it conventionally. It's the rhetoric, and relative growth, in the driver's seat right now. Ignore that reality at your own peril. * 10 Stocks on the Rise Heading Into the Second Quarter DowngradedIt's not a company that needs much in the way of introduction. Although Apple (NASDAQ:AAPL) arguably pioneered and mainstreamed the idea with its Apple TV set-top receiver, Roku made streaming hardware affordable enough for the masses. Roku now leads the streaming receiver market, outselling Apple, the Fire TV device from Amazon.com (NASDAQ:AMZN) and Chromecast from Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG).That's not necessarily good enough for Loop Capital's Alan Gould, who recently downgraded Roku stock to a "Sell" because "the company faces substantial potential competition and we believe it is difficult to justify the valuation."He's not wrong. Roku is facing substantial competition, and still booking losses, any ROKU stock price is technically too high to justify. Even based on revenue though, its trailing price/sales ratio of 9.5 is well above that of similar names.But, since when did that matter? The Bull CaseGould's point is well taken. So is Macquarie's Tim Nollen's message that "Ad-supported video on demand (AVOD) will get more competitive, with services such Viacom's (NASDAQ:VIAB) Pluto TV, Amazon's ad-supported channel, and a potential Apple video service to be announced Mar. 25."Roku is no slouch in the ad-supported video market, however. Its competitors are doing what they're doing largely because they want to latch onto its coattails.Other competitors, meanwhile, aren't actually competitors at all.That's how Needham's Laura Martin sees matters anyway. She recently touted Roku stock as the company's top pick for 2019, suggesting Apple's foray into home-grown video content is "positive for Roku, not a negative."Martin was also quick to say the post-downgrade plunge in the ROKU stock price last week was "overdone," and a buying opportunity.Guggenheim's Michael Morris agrees, upping the firm's price target from $54 to $77 earlier in the month on the SVOD industry-wide "bring your own device" movement. Although Roku doesn't monetize most of the traffic traveling through its own platform yet, it still offers users a "robust, attractive environment" that makes it an important centerpiece of consumers' entertainment lives. Bottom Line for Roku StockAnd there's the rub. The valuation-minded pessimists make sense. The concept-minded optimists make sense. That's always the case with a young story stock that's not yet become what it's going to ultimately be.There will come a time when Roku has to completely justify its valuation with actual fiscal results. Investors, while often patient, won't remain patient forever.We're years away from that time for Roku though. In the meantime, it's the the story that pushes shares higher or lower.That's a good thing, certainly more good than bad. Even with competition mounting, investors love the idea of what Roku is. They love the idea of what Roku seems like it's going to become. It's an easy sell to anyone that likes to speculate on the convergence of technology and culture. It's no secret there are plenty of those kinds of people all over the world right now.Roku stock is a story stock, plain and simple, and fully capable of shrugging off downgrades. Indeed, last week's plunge following two simultaneous downgrades was stopped within a day, and shares have been climbing (albeit modestly) since then.Don't stress the bearish calls if you own it. It's just not yet a name that analysts can push or prod. The trading mob is still in charge, for better or worse.As of this writing, James Brumley held a long position in Alphabet. 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 * 7 Specialty Retail ETFs to Buy the Industry's Disruption * 5 Stocks To Buy for the Happiest Employees * 3 Out-of-Favor Consumer Stocks to Buy Compare Brokers The post Ignore the Analysts and Keep Trading Roku Stock Based on Its Story appeared first on InvestorPlace.
Competition and resistance are everywhere when it comes to a stock like Netflix (NASDAQ:NFLX). But if investors subscribe to the idea challenges off and on the price chart are meant to be overcome, now is a very good time to go long Netflix stock. Let me explain.Source: Vivian D Nguyen via Flickr (Modified)There are so many things that could go wrong with Netflix stock and its bullish fan base. Off the price chart, there's NFLX's glaringly rich price-to-earnings ratio, which fetches a multiple of 139 on a trailing basis and a still stiff forward price of 58 times earnings.Still, continued strong double-digit revenue and subscriber growth make more than a good argument why NFLX investors maintain their support. And forecasts, such as Netflix doubling its subscriber base over the next decade, keep the company's momentum narrative intact and the pricey multiple concerns at bay.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut what about Netflix's storied cash burn and those competitive threats Netflix stock faces?Those are challenges that do appear to be growing every day. Currently, Apple (NASDAQ:AAPL) and Disney (NYSE:DIS) are set to enter the streaming video on demand or SVOD market in 2019 with new platforms of their own. Once again though, and as InvestorPlace contributor Rohit Chhatwal notes, those dangers are likely more superficial than real for a myriad of reasons. * 10 Stocks on the Rise Heading Into the Second Quarter And what about the resistance and challenges NFLX stock has to contend with on the price chart? Here too, the story is unfolding as a very strong narrative for Netflix bulls. Netflix Stock Daily Chart Click to EnlargeFollowing a steep correction late last year and then a quick and roughly equally sized rally, it was difficult to subscribe to being a fan of NFLX stock in the short-term. Along with streaming device maker Roku (NASDAQ:ROKU), I wrote as much back in the first half of January.Despite the fact that shares now roughly 10% higher, it was a good observation. In the face of my cautious point of view, NFLX experienced early gains, but it wasn't without even more difficult-to-handle, gut-wrenching volatility as bulls and bears dueled around the 200-day simple moving average.In the here and now though, conditions are looking definitely up for Netflix stock bulls.Following Netflix's bears ceding control and shares trading laterally over several weeks, backed by the 200SMA and 62% retracement level, Wednesday's session witnessed a market-bucking breakout on heavier and above-average subscriber rates from investors.It's very bullish.That's not to say there's no chance for a scary sequel to emerge on the NFLX stock chart. As I've been known to say, there are no guarantees on Wall Street except the opening and closing bells.But with the breakout in Netflix well-supported by a friendly looking stochastic set-up, shares have the technical wherewithal to reclaim their prior all-time-high of $423.21 established last summer. That's about $50 or 13% higher and where an initial price target for profit-taking makes sense.For investors that believe in the inevitability of that bullish challenge, buying Netflix stock today could make sense. But rather than maintaining a "buy and hope" strategy, I'd recommend a blended and practical stop of 5%. This exit allows investors to contain exposure to a manageable amount relative to the potential upside reward. It also lays slightly beneath Netflix's three-day low and at this point in time, not a price level on the NFLX stock chart that needs to be revisited.Disclosure: Investment accounts under Christopher Tyler's management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies, related musings or to ask a question, you can find and follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Specialty Retail ETFs to Buy the Industry's Disruption * 5 Stocks To Buy for the Happiest Employees * 3 Out-of-Favor Consumer Stocks to Buy Compare Brokers The post The Best Way to Join the Netflix Stock Breakout appeared first on InvestorPlace.
Stocks are off to a great start in 2019. All three major indices are up more than 10%, led by a 16% rally in the Nasdaq Composite, and it's still only March.But, not all stocks have had a great year thus far. For every Roku (NASDAQ:ROKU) and Snap (NYSE:SNAP) -- two stocks that are already up more than 100% year-to-date -- there's another stock on the other end of the spectrum that has struggled for gains in 2019.For some of those struggling stocks, the pain will persist because the fundamentals are weak, and only getting weaker. Indeed, that's probably true for most stocks that have struggled amid the recent market rally.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut, for other beaten up stocks, the pain could end soon. The fundamentals are weak today, but getting better. When they do get better, they will converge on a beaten up stock against a healthy market backdrop, and that convergence could spark a rip-your-face-off rally.That's why I've compiled a list of seven beaten up stocks that I think are ready to reverse course soon. These stocks may stay weaker for longer. But, the underlying fundamentals are improving, and ultimately, buyers who exercise patience at these levels should be rewarded with a big rally in the near- to medium-term future. * 10 Stocks on the Rise Heading Into the Second Quarter Which beaten up stocks made the cut? Let's take a look. Axon (AAXN)Source: Shutterstock % Off All-Time Highs: 37%One of my favorite growth stocks back in 2017 was Axon (NASDAQ:AAXN). The thesis was simple. The law enforcement world is outdated. It needs to be technologically upgraded. Axon provides solutions that do just that across a wide spectrum applications, including smart weapons, body cameras and digital recording systems. Adoption of these solutions will grow by leaps and bounds over the next several years. As it does, Axon stock, which seemed hugely undervalued at $20, will rally.Fast forward two years. The big rally in Axon stock happened. It jumped from $20 to nearly $80 in a year and a half. That rally was overdone. Now, the stock has pulled back in a big way to below $50. This pullback is likewise overdone. The core fundamental growth narrative of Axon improving processes and outcomes across the law enforcement world remains healthy and unchallenged (there are basically no competitors). The stock just got ahead of itself at $80.I've long maintained that Axon stock is fundamentally supported and attractive at $50. I maintain that stance today, and that's why I think this stock is ready to reverse course soon. Weibo (WB)Source: Shutterstock % Off All-Time Highs: 56%Calendar 2018 was unkind to all stocks, but particularly so to Chinese tech stocks. In the slaughtered China tech group, one of the biggest losers was Weibo (NASDAQ:WB), which dropped more than 60% off all-time highs and remains more than 55% off all-time highs today.Surprisingly, the big drop in Weibo stock had very little to do with Weibo-specific fundamentals. Those fundamentals have remained very good. The social networking platform has continued to add users and grow revenues at a robust pace, while it has largely maintained its margin profile and consequently grown profits at an equally robust pace. But, what happened in 2018 is everyone freaked out about a slowdown in China, and those fears coupled with escalating trade and FX headwinds to create a tremendous amount of selling pressure on Weibo stock. * 5 of the Best Stocks to Buy Under $10 Things are looking up for Weibo stock in the New Year. China's economy appears to be stabilizing. Trade headwinds are less severe. As are FX headwinds. Meanwhile, the company just reported quarterly numbers that comprised 28% revenue growth, 18% user growth and 26% profit growth. In other words, the macro is improving, and the micro remains favorable. As such, it seems like only a matter of time before Weibo stock stages a huge comeback rally. Nvidia (NVDA)Source: Shutterstock % Off All-Time Highs: 43%Chip giant Nvidia (NASDAQ:NVDA) used to be considered the unstoppable "AI company". Everyone thought that the company had a monopoly in supplying the building blocks for AI-powered technologies. Everyone also assumed that demand in AI-end markets would remain robust forever. Neither of those is true. Nvidia has stiff competition, and demand has slowed. As such, Nvidia has gone from being an unstoppable growth stock, to a severely beaten-up stock trading more than 40% off all-time highs.But, things should improve in 2019. The big headwinds that weighed on NVDA stock in 2018 were inventory issues putting pressure on margins, and trade and economic uncertainty headwinds diluting demand. Those headwinds will become old news in 2019. Nvidia is already cycling through its inventory issues, and trade and economic uncertainty headwinds have become significantly less severe. As such, in 2019, demand should come back into picture, while supply should be reduced. That will create a favorable backdrop for Nvidia to return to healthy revenue growth and gross margin expansion.When that happens, NVDA stock will stage a huge turnaround toward and potentially above $200. Capri (CPRI)Source: Shutterstock % Off All-Time Highs: 54%Shares of global fashion conglomerate Capri (NYSE:CPRI) have been hammered over the past several quarters for various reasons. One, the core Michael Kors brand has lost steam. Two, margins have been under pressure. Three, investors have questioned the Versace acquisition. All together, investor sentiment has been weak, and CPRI stock has dropped more than 50% off all-time highs.I think these concerns are overblown. In the big picture, the morphing together of three luxury fashion brands (Michael Kors, Jimmy Choo and Versace) under one fashion conglomerate umbrella mitigates the financial risks and noise associated with fashion-trend cycles, while boosting brand awareness and equity. Consequently, while the Michael Kors brand will continue to cycle between hot and cold for the foreseeable future, Capri's revenues in 2019 and after will show significantly greater stability. Margins will likewise improve with this enhanced stability. And, because of revenue and margin stability, the Versace acquisition will prove to be more than worth it -- it will ultimately be seen as necessary. * 7 Hot Stocks Under $4 It's only a matter of time before the market realizes this. When it does, investors will flock to this really cheap stock (9-times forward earnings) and that flocking could spark a big recovery rally. AT&T (T)Source: Shutterstock % Off All-Time Highs: 30%The narrative at AT&T (NYSE:T) has been dominated by cord cutting for several years now. Specifically, as more consumers have cut the cord, AT&T's historically stable cable business has struggled. That has created a drag on the company's revenue, margins and profits. To make matters worse, with the acquisition on Time Warner, AT&T is now one of the most indebted companies in history. A bunch of debt on muted profit growth doesn't exactly attract buyers. It attracts sellers, and that's exactly what has happened to this stock.But, a turnaround could be in store. The mainstream and widespread roll-out of 5G wireless coverage is coming, and that will provide a much-needed boost to this company's wireless business. Meanwhile, Time Warner content assets should give AT&T the necessary firepower to expand more deeply into the streaming world and offset cord cutting weakness. Rates have also stopped climbing, so pressure on the balance sheet is easing while the big 6.6% dividend yield is relatively more attractive.All in all, the fundamentals underlying AT&T stock will improve in 2019. As they do, this super cheap, beaten up stock will outperform. Twitter (TWTR)Source: Shutterstock % Off All-Time Highs: 57%In 2018, social media giant Twitter (NYSE:TWTR) was on a roll. Until it wasn't. The stock went from $25, to $50, back to $25, all in the same year, as investors couldn't figure out whether user growth really mattered. Ultimately, the market has settled on the fact that it does matter, as revenue growth and margin expansion have remained robust, but the user base has declined, and Twitter stock trades well off all-time highs.The market made the wrong conclusion here. Monthly active users is a meaningless metric without engagement. What are eyeballs if those eyeballs aren't really interacting or paying attention? Engaged eyeballs for advertising purposes are infinitely more valuable because they lead to more data, which leads to better targeting, more relevant ads, and more ad conversions. At Twitter, those engaged eyeballs continue to go up, as the number of engaged daily active users is growing at a ~10% year-over-year rate. * 5 Stocks To Buy for the Happiest Employees So long as that number continues to grow, revenues will grow, and so will margins. The market will realize this in 2019. When it does, you will see Twitter stock stage a big turnaround. Activision (ATVI)Source: Gamevil Inc. via Flickr% Off All-Time Highs: 48%Much like Twitter, Activision (NASDAQ:ATVI) stock was on a roll. But the stock went from $65, to $80, to $45, all in a matter of twelve months, because near-term positives quickly turned into near-term negatives. Specifically, everyone was expecting a big holiday quarter out of Activision thanks to a new Call of Duty release. That release got delayed. When the game finally did get released, adoption and engagement rates were underwhelming. Fans were disappointed. So were investors. ATVI stock dropped 50%.But, this 50% haircut in ATVI stock seems way overdone. In the big picture, Activision still has three big trends working in its favor. One, digital and mobile consumption globally is only growing, and that lends itself to continued growth in the video game industry, of which Activision is a big player with a broad portfolio of secular appeal games. Two, esports is just starting to come into its own, and Activision is behind arguably the world's most important esports league. Three, innovation in the video game industry is nearing a breakthrough with things like AR/VR and cloud gaming, and those breakthroughs could supercharge growth across the whole industry.Overall, the long-term positives here significantly outweigh the near-term negatives. As such, patience will be rewarded. Eventually, near-term negatives will phase out. When they do, Activision stock will pop in a big way.As of this writing, Luke Lango was long ROKU, AAXN, WB, CPRI, T, TWTR and ATVI. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Specialty Retail ETFs to Buy the Industry's Disruption * 5 Stocks To Buy for the Happiest Employees * 3 Out-of-Favor Consumer Stocks to Buy Compare Brokers The post 7 Beaten-Up Stocks to Buy as They Reverse Course appeared first on InvestorPlace.
Apple's (AAPL) much-anticipated video streaming service, set to launch on Mar 25, will not include Netflix's streaming platform.
The streaming media device maker has still more than doubled in 2019 after a rough week featuring a pair of analyst downgrades. Chaos is a ladder, Littlefinger says.
Apple (AAPL, $183.73) is expected to release a glut of new products this year. And for the company's sake, it should.Apple ran into the brick wall of a slowing global smartphone market last year; smartphone shipments have logged five consecutive quarters of year-over-year declines. The trend is clear, and Apple isn't immune. In fact, Apple has more to lose than many of its smartphone competitors because the iPhone is its primary revenue generator. It was a decade of record-breaking iPhone sales that pushed Apple to become a trillion-dollar company in 2018.Apple responded to slowing demand by increasing the price of its flagship iPhones, leveraging the higher average sale price to buoy revenue, even as iPhone unit sales fell. That helped to plaster over the problem for a while, but in January the company reported that quarterly iPhone revenues had declined a whopping 15% from the previous year.Clearly Apple must count on other products and services to take up the iPhone revenue slack. So look for 2019 to be a busy one for Apple CEO Tim Cook as his company cranks up the product releases.Here are 15 new products we expect Apple to announce at various events throughout 2019. SEE ALSO: 10 Apple Products That Changed Everything (And 10 That Didn't)
Shares of Roku (ROKU) have skyrocketed over 100% this year, despite Wednesday's selloff, as the streaming TV firm races back toward its fall 2018 highs.
Recently I wrote about Roku (NASDAQ:ROKU) and shared important trading levels that turned out to be spot on. In that article I warned that analysts were a threat to the stock price as they would soon "change that or their rating on it." This in hindsight turned out to be prophetic.Source: Shutterstock ROKU had a really tough Wednesday as since yesterday Loop Capital and Mcquarie downgraded the stock. It fell 14% in one day on the headlines. So one would think it's a disaster, but ROKU stock is still up 90% for the year even after this dip. Clearly this deserves a closer look before catching the falling knife.It is obvious that Roku is a momentum stock, and it took a rocket ride up -- especially after the earnings. So it may have built up a layer of new buyers who chased the stock too late in the game from the fear of missing out. These are the weakest hands in it now, and they pose a threat to the price action.InvestorPlace - Stock Market News, Stock Advice & Trading TipsLoop Capital cut ROKU stock to "sell" with a $45 price target. While the second analyst merely downgraded to "neutral" and raised their price target to $66 per share which is $5 higher than now. This is proof that the matter is still up to debate, and I encourage everyone to trade their own thesis not so called experts.I profess that my message today will not win me a popularity contest among ROKU fans. But before you send me hate mail, know that I don't judge the company -- I just aim to find proper trading levels. My somewhat bearish opinion of its fundamentals should not sway anyone from owning it for the long term. Meanwhile, I merely point out risks to the price. * 7 Winning High-Yield Dividend Stocks With Payouts Over 5% Short-term headlines are catalysts but they don't necessarily change the thesis. ROKU operates in an area that has a bright future. Netflix (NASDAQ:NFLX) proved that we want to stream our content going forward. This is a global trend and one not likely to die any time soon. Media giants recognize this, as is evident from Disney's (NYSE:DIS) commitment to launching its own streaming service. Roku is poised to play a part in that movement.The beauty of the ROKU business model is that it is content agnostic. They do not compete with the content providers, but they provide the delivery vessels for what's available. My problem is with valuation. I believe Wall Street recently over did it on that front. So from that sense I agree with the downgrades from a fundamental perspective.So for the long term, I am not one to bet on ROKU stock. I don't think it can grow into its valuation. This is a 16-year-old company that still loses money. So until it shows me either profit or hyper growth I prefer investing elsewhere. However, it's definitely tradeable.For a stock that moves this fast, we should find good levels on worthy dips. A 14% fall after a massive 180% rally off the December lows is not deep enough.Most often, Wall Street overshoots in both directions, but somewhere in the middle always lies the truth. In the last five years, ROKU had two triple digit percentage rallies that ended in severe corrections. It went from under $20 per share to $70 twice and therein lies the risk.This last poke to the $77 per share level made it a candidate for a double-top meme. Last October, the stock rallied to $77.57 then fell 65% from high to Christmas lows. The rebound from that was even steeper than the prior rally therefore making it even more extreme. So it would not be strange to expect the possibility of history repeating itself. A sharp correction could be unfolding here and could lasts for a few more days.So, I do not want to be the hero who tries to catch this falling knife. I'd wait for stabilization, and this starts with a troughing process. ROKU would need to stop setting lower lows and build a trend of higher ones until it breaches the upper edge of the descending channel.In this case and so far we only have two candles, so the price discovery is a work in progress and it may still be too early to buy.The biggest candle this year was the earnings reaction on Feb. 22 when the stock broke out from the $54 neckline. The target of that bullish pattern has since completely priced out. Now that ROKU is falling, on the way down the neckline which are pivot points act as support. Both bulls and bears who fought over it then would reengage thereby creating congestion. This is also the battle zone from the earnings of last November when the stock fell into a 50% correction that ended in December.Clearly Wall Street is interested in that level, so I would hold off buying the stock until it gets tested again. The short-term volume profile also suggest that the $50 to $52 zone offers the best short-term support level. Longer term, there is room to fall much further if the bears succeed in their mission.So, if I am long the stock and I haven't yet closed my longs, I would wait to see if it can hold $60 per share. If that fails ROKU stock could retest the bottom of the earnings candle so $54 is still in play and $52 would close the earnings gap.This is not a forecast -- I merely point out levels and scenarios that matter. The specific decision on risk management varies from investor to investor, depending on timing and risk tolerances.If the stock doesn't rebound soon and retake the recent highs then the shorts will grow bolder, counting on the double top as an absolute roof. Onus is on the bulls to show that they are in charge of that stock but the window for that is small. On the way up the important resistance levels are at $65, $67 and $70 per share.In my last write up I noted that "As ROKU approaches the $74 area, the threat of a pullback increases." And in hindsight, that turned out to be accurate almost to the penny.Then I also recommended that only those who were nimble enough to snipe the last $4 left in the rally. Else the right thing to do is wait for the breach of $77.50 to chase or a pull back to support. It looks like my plan was the correct one to use. So now it's a matter of waiting for the support to kick in.Why bother? Because ROKU stock is a good trading vehicle. Nevertheless, it is also a momentum stock, so it could turn out to be a falling machete with a tiny handle. It would be dangerous to catch it too early.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. You can follow him as @racernic on Twitter and Stocktwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 15 Stocks Sitting on Huge Piles of Cash * The 10 Best Stocks to Buy for the Bull Market's Anniversary * 7 Dividend Stocks With Big Yields Compare Brokers The post Know the Important Levels in the Battle for Roku Stock appeared first on InvestorPlace.
Shares of Los Gatos-based streaming hardware company Roku, Inc. plunged 14 percent on Wednesday, after two analysts downgraded the stock, saying they were worried about fresh competition on the near horizon. It was Roku’s single worst trading day since February 2018, with shares closing at $60.74. Despite the downgrades, Roku remains one of Wall Street’s best-performing stocks of 2019.
Shares of Roku Inc (NASDAQ: ROKU ) plummeted Wednesday after Loop Capital downgraded the stock. The bull-bear debate continues with two analysts offering opposing views. The Analysts Needham's Laura Martin ...
Although I've helped InvestorPlace readers successfully navigate Roku (NASDAQ:ROKU), I still find shares difficult to decipher. Less than a year-and-a-half has passed since the company's initial public offering, yet the ROKU stock price traveled all over the map.Source: Shutterstock The trailing six months provide a telling example of the volatility you can expect with the streaming-TV equipment provider. From an all-time record high in October last year to a devastating multi-year low less than 90 days later, ROKU stock at least keeps traders busy, and employed.However, some analysts believe that the choppiness may soon fade. With Apple (NASDAQ:AAPL) probably on the verge of announcing its video-streaming service, it has added incentive to market Airplay 2. A proprietary system, Airplay facilitates audio or video streaming from an Apple product to a different device.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe second iteration of this technology expands this capacity to include several non-Apple brands, such as Samsung and Sony (NYSE:SNE). But Roku was left out in the cold. Of course, as a comparative minnow, losing such a high-profile partnership levered an exponential impact. Unsurprisingly, the ROKU stock price took it on the chin. * 5 of the Best Stocks to Buy Under $10 But with Apple needing to establish credibility in the content space, a partnership with ROKU makes sense. Recent rumors indicate that the two companies are on the verge of inking a deal. If so, Roku-armed T.V.'s can stream content via an iPhone, iPad or Mac computer, generating an instant value-add.On the surface level, this is the type of fundamental driver that should sustainably and consistently drive the ROKU stock price. But after gaining 4% on the news, shares have more than given up that burst of profitability. How then should investors proceed? Apple Streaming Is No Panacea for ROKU stockIn my last write-up about Roku, I had confidence that a strong showing for its fourth-quarter fiscal 2018 earnings report could spike shares. We got exactly that, and like clockwork, the streaming-equipment provider launched into low-earth orbit.At the same time, I urged readers not to chase the ROKU stock price. Shares had already gone berserk prior to the Q4 report. After management disclosed their earnings beat, the company became even more of a unicorn. Year-to-date, the upstart streamer has skyrocketed over 137%.Unfortunately, unicorns aren't real. While the fundamentals support ROKU stock -- the company's user base has increased dramatically and productively -- we've seen this before. I worry that the good news has been priced in. That means shares are rising based largely on emotion, such as the "fear of missing out," or FOMO.I'm going to stick with my last assessment: I encourage you to miss out, at least at this price point.Primarily, I don't see Apple's streaming overtures as a panacea for Roku. For one thing, Android operating systems dominate mobile market share. Therefore, you're talking about a necessarily limited market for Apple. From Roku's perspective, they need to expand in total numbers, and not just with revenue-per-user.Plus, Apple doesn't really offer anything compelling or groundbreaking with its newfound original-content venture. Although it has aggressively courted executive, acting and directing talent to kickstart their entertainment enterprise, they're way behind the curve.Of course, Apple being Apple, they're likely to throw their vast riches into the content and streaming space. But even then, I go back to my original concern about Roku: nothing new or exciting exists to justify the excess in the ROKU stock price. * The 10 Best Stocks to Buy for the Bull Market's Anniversary As a result, I'd rather stay on the sidelines until a better opportunity arises. Don't Feed Your EmotionsIf you take a look at Roku's long-term chart, you'll unmistakably recognize a pattern of sharp peaks and valleys. You don't have to be a technical analyst -- or even believe in the technical approach -- to recognize that this is an emotional stock.Specifically regarding Apple and the Airplay deal, Roku dropped nearly double digits on a single day when Apple apparently snubbed the streaming company. Later, it jumped significantly when AAPL relented, only to give up those gains 24 hours later.Clearly, this isn't about Airplay. Instead, most of the markets are reacting emotionally to any noteworthy news or even rumors. Don't get me wrong: I think ROKU has serious upside potential. It just needs a reality check before it gets there.As of this writing, Josh Enomoto was long SNE. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 15 Stocks Sitting on Huge Piles of Cash * The 10 Best Stocks to Buy for the Bull Market's Anniversary * 7 Dividend Stocks With Big Yields Compare Brokers The post Appleas Streaming Venture Is a Distraction for Roku Stock appeared first on InvestorPlace.
A week ago, I put out a piece on InvestorPlace which broadly said that after a 160%-plus rally in under three months, shares of streaming company Roku (NASDAQ:ROKU) were due for a pullback. The thesis: ROKU stock is a long-term winner, but stocks don't go up in straight lines forever, and Roku shares are nearing big technical resistance levels in the mid-$70's after coming very far, very fast.Fast forward a few days. We are getting that big pullback in Roku stock. Yesterday, shares dropped big on a pair of Wall Street downgrades which cited valuation and competition concerns. Naturally, following this big pullback, the question surrounding ROKU shares becomes: what now? * 7 Top Stocks to Buy From Goldman Sachs' Secret Portfolio For starters, I wouldn't pay much attention to the analyst downgrades. Competition concerns don't hold water in the big picture. Valuation concerns are legitimate but they've been largely fixed by the recent 15% haircut investors gave to Roku stock.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMeanwhile, I would pay attention to two things: the big picture fundamentals and the technicals. Broadly speaking, the big picture fundamentals remain healthy, and support huge long-term upside in ROKU stock. Meanwhile, the technicals imply that the shares could bottom around $60. But, if they fall through the $60 floor, the next big level to watch for is $50.As such, I think now is a good time to start adding exposure to Roku stock again. Dip in your toes here. See if the $60 level holds. If it does, stick with the rally. If not, trim, and wait for $50. Long term, this stock is only going higher. Big Picture Fundamentals Remain HealthyBoth Loup Capital and Macquarie downgraded Roku stock on March 13, and that pair of downgrades sparked the big selloff. The tone of each analyst team was largely similar and went something like this: the stock has come very far, very fast, and is overvalued considering the plethora of competition risks on the horizon in the ad-supported video on demand (AVOD) space, including Apple (NASDAQ:AAPL).Although those downgrades have some merit, they lack credibility in the big picture.In that big picture, Roku is over-the-top (OTT) video access aggregation and curation. This has more and more value as the number of OTT video consumers and suppliers increases. Suppliers need Roku to reach an increasingly large and diverse consumer base; consumers need the platform to access an increasingly large and diverse supply of streaming services.In this sense, while some analysts think that new streaming services from Apple and Disney (NYSE:DIS) are a negative for Roku stock, they aren't. Sure, they create greater competition in the AVOD space. But, those services will also have to be streamed through Roku if Disney and Apple want to maximize reach. With a nearly 30 million -- and rapidly growing -- OTT video watcher base, Roku has unprecedented reach in this space. In fact, ahead of Apple's big streaming service launch, Apple and Roku have "nearly finalized" a deal to extend Airplay capability to Roku devices.Any dollars Roku loses in the AVOD space, it will win back in revenue sharing AVOD, TVOD (transaction video on demand), and SVOD (streaming video on demand) dollars. That is the inherent value of an aggregation and curator. Roku doesn't need to win every market. They just need to win the reach battle, become an irreplaceable centralized access point, and monetize through revenue sharing.That's exactly what Roku is doing. As such, the big picture fundamentals underlying Roku stock remain favorable. Pay Attention to the TechnicalsBecause the big picture fundamentals remain favorable, investors should pay attention to the technicals for clues as to when to buy the dip in Roku stock.Long story short, $60 could be a good entry point. During the big early 2019 rally, Roku stock blew way ahead of its moving averages. Now, it's retreating back to those levels, the closest of which is the 20-day moving average at $60. Roku stock appears to have held this technical level in the short term. If it can hold this level for the next several trading days, then it looks like the worst of this selloff is already over.That may not happen. ROKU stock may continue to fall, evening dropping below the 20-day level. If so, the next line of defense comes in at $50, which is where both the 50- and 200-day moving averages currently sit. * 15 Stocks Sitting on Huge Piles of Cash The game-plan here is simple. Test the waters at $60. See if that level holds. If so, buy into the rally. If not, trim, and wait for support at $50. Bottom Line on ROKU StockRoku stock is a long-term winner supported by the thesis that the company is turning into a dominant OTT video service aggregator and curator. So long as those fundamentals remain healthy, ROKU stock will be a buy-the-dip stock at critical technical levels. We are closing in on one such key technical level at $60. As such, now seems like a good time to cautiously and slowly buy the dip in these sharesAs of this writing, Luke Lango was long ROKU. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 of the Best Stocks to Buy Under $10 * 7 Retail Stocks Winning in 2019 and Beyond * The 10 Best Stocks to Buy for the Bull Market's Anniversary Compare Brokers The post The Long Overdue Pullback In Roku Stock Is Here, But It Won't Stay For Long appeared first on InvestorPlace.
Another robust trading session has the S&P 500 threatening to run higher, especially if the index can stay over this ~2,800 level. That said, there were some big movers in both directions today, so let's get a look at our top stock trades moving forward. Top Stock Trades for Tomorrow 1: Aurora CannabisShares of Aurora Cannabis (NYSE:ACB) were flying higher Wednesday, up almost 13% after it was announced that Nelson Peltz would be an advisor to the company. It thrust the stock over resistance near $8.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Retail Stocks Winning in 2019 and Beyond This mark had kept a lid on ACB over the last five months and as it gives way, there's a lot of potential upside. Don't forget, in October ACB was trading north of $10 while its 52-week high is $12.52.Below $8 and there's cause for concern among bulls. I would not be long this name below the 21-day moving average or uptrend support. Top Stock Trades for Tomorrow 2: RokuIn the opposite direction we have Roku (NASDAQ:ROKU). This stud is still up 100% so far on the year, but a pair of downgrades on Wednesday morning knocked it down by $10 a share. Sheesh!Clearly this doesn't change Roku's fundamental outlook, but the declines likely ushered in profit takers who have been long this stock for its post-earnings run. Now I need to see uptrend support hold and I want to see Roku stock close above the 21-day moving average.If that's the case, bulls may have a case to be long, but it wouldn't be bad for Roku stock to digest some of this big move. A test of this $58 area would allow ROKU to retrace about 50% of its day-one earnings rally. Also worth pointing out is that Roku stock, at its lows on Wednesday, sat at the 61.8% Fibonacci retracement from its post-earnings range. See if it holds Wednesday's low and reclaims the 21-day. Top Stock Trades for Tomorrow 3: Rite AidWhat have we always said here on InvestorPlace? Do. Not. Invest. In. Rite Aid (NYSE:RAD)!There's a reason why as this name is volatile and circling the drain. Long or short can get both investors hurt and that's why it's been a no-touch for me for a long time. Notice on the chart that the stock couldn't even get above $1 back in January.An eventual delisting is likely and even today, RAD couldn't hold its gains. I expect this one to take out 65 cents and if it does, it will likely go below its 52-week low at 60 cents. I'm not shorting, but I'm definitely not buying it. Top Stock Trades for Tomorrow 4: ExpressAnother struggler, investors had a warning in Express (NYSE:EXPR) before Wednesday's 10.5% post-earnings fall.Notice the purple arrows on the chart. Arrow No. 1 told investors that support near $5.08 was no longer in play. Arrow No. 2 showed that the retest of support failed, just before earnings. Even if it had barely reclaimed support, the pre-earnings breakdown was warning enough with a name like this.Now sub-$5 and I find little reason to stick with EXPR. Expect rallies to be met with sellers until the tide changes. Top Stock Trades for Tomorrow 5: PayPalAfter breaching $100, PayPal (NASDAQ:PYPL) stock is pulling back. It's clear that momentum is bullish in PYPL and that makes it a solid buy-the-dip candidate. * 15 Stocks Sitting on Huge Piles of Cash It's totally possible that we get more upside follow through above $100 on Thursday. Particularly given that shares are not yet overbought. However, I'll be looking for an eventual pullback into uptrend support and the 21-day moving average. If we get it, bulls have a great risk/reward setup.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 of the Best Stocks to Buy Under $10 * 7 Retail Stocks Winning in 2019 and Beyond * The 10 Best Stocks to Buy for the Bull Market's Anniversary Compare Brokers The post 5 Top Stock Trades for Thursday: Aurora Cannabis, Roku, Rite Aid appeared first on InvestorPlace.
Earlier this month, I thought I made a persuasive case for investors to avoid Roku (NASDAQ:ROKU) stock before it went on a tear in the wake of better-than-expected earnings and optimism about a partnership with Apple (NASDAQ:AAPL). Since my crystal ball appears to have been faulty, I decided to take another look at ROKU stock and have decided that it may be worth considering for investors with very high tolerances for risk.To be sure, Roku has got plenty going for it including a popular lineup of products that high tech experts rave about. However, the company isn't rolling in cash. During the three months that ended Dec. 31 net income at Roku was a minuscule $6.77 million, or 5 cents per share, compared with $6.94 million, or 6 cents, a year earlier. Revenue at the Los Gatos, Calif.-based company surged 47% to $275.7 million, buoyed by the strength of its Platform business.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe company forecast 2019 revenue of more than $1 billion thanks to the growth in its operating system for smart TVs that it has been developing for the past 10 years and the strength of its advertising business. * 7 Dividend Stocks With Big Yields According to MacRumors, Roku is finalizing a deal with Apple that would enable Roku users of Apple's AirPlay 2 to stream content directly from their iPhones, iPad, and Macs directly to their smart TVs. This would be a coup for Roku, which competes with AAPL and other tech giants, such as Amazon (NASDAQ:AMZN) and Alphabet's Google (NASDAQ:GOOG) in the video streaming equipment market. Whether it's a prelude to closer ties between the two companies is hard to say. Questions Linger as Costs SurgeAll of the good news about Roku, however, comes at a steep price as the company's costs are growing at a faster rate than its revenue. Roku's operating expenses surged 67% to $106.8 million in the fourth quarter as it added more than 1,100 employees, a "record number of net new hires." Operating expenses are expected to be $10 million higher in the current quarter than the fourth quarter as it continues its hiring spree.CEO Anthony Wood also didn't provide many details about Roku's overseas expansion plans during its earnings conference call other than to say the company operates in 20 countries and that its investments will start paying off in 2020."… We are starting to invest in the team and projects. And again, we haven't broken out the amount, but it's one of the -- International is probably one of the top four areas we're investing in along with Roku TV, The Roku Channel is International. So we'll have more information as the year plays out." Volatility Reigns SupremeNot surprisingly, considering its rising spending, ROKU expects to lose money in the current quarter and for 2019. Given that their competitors are so much larger, I remain skeptical that Roku will be able to maintain its competitive edge over the long run. Moreover, since the video streaming market is fairly concentrated it would be difficult for a rival like AAPL or Amazon to buy Roku without running afoul of antitrust regulators.Roku now trades more than $10 over its average 52-week price target of $63.84. Could it soar higher? Given the hype around the video streaming market, absolutely. However, Roku shares can easily crater with the slightest hint of bad news. It's clearly a stock for investors with a high tolerance for risk, far more than I am willing to tolerate.As of this writing, Jonathan Berr did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 of the Best Stocks to Buy Under $10 * 7 Retail Stocks Winning in 2019 and Beyond * The 10 Best Stocks to Buy for the Bull Market's Anniversary Compare Brokers The post Why I Changed My Mind About Volatile Roku Stock appeared first on InvestorPlace.
ROKU stock was taking a beating Wednesday on news about Roku downgrades.Source: Shutterstock The first of the downgrades for Roku (NASDAQ:ROKU) stock comes from Loop Capital analysts. This Roku downgrade has the firm dropping the seller of streaming set-top boxes from a "Hold" rating to a "Sell" rating.The Roku downgrades don't stop with Loop Capital though. The stock got another downgrade from analysts at Macquarie as well. This downgrade has the firm bumping ROKU stock down from an "Outperform" rating to a new "Neutral" rating.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSo what was the reason behind these Roku downgrades? Loop Capital analyst Alan Gould says that the downgrade to ROKU stock was due to its valuation. He believes the company doesn't warrant a "Hold" rating at its current level, reports TheStreet.com.The Roku downgrades today also come alongside some new price targets for the stock. Strangely enough, these price targets are increases. The first comes from Macquarie and it ups the price target for ROKU stock from $57 to $66. This is still about 7% lower than the stock's closing price on Tuesday. * 15 Stocks Sitting on Huge Piles of Cash The second price target increase for ROKU stock today comes from SunTrust Robinson. This firm is bumping up its price target for the stock from $42 to $63. That's down about 11% from the stock's closing price yesterday. SunTrust didn't provide any kind of update to its rating for ROKU stock, Schaeffer's notes.ROKU stock was down 12% as of Wednesday afternoon. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 of the Best Stocks to Buy Under $10 * 7 Retail Stocks Winning in 2019 and Beyond * The 10 Best Stocks to Buy for the Bull Market's Anniversary As of this writing, William White did not hold a position in any of the aforementioned securities.Compare Brokers The post Roku Downgrades Send ROKU Stock Lower appeared first on InvestorPlace.
From time to time stocks can go from "expensive to more expensive," with the latest example being Roku Inc (NASDAQ: ROKU ), according to Loop Capital. The Analyst Loop Capital Markets' Alan Gould ...
Roku Inc. shares dropped more than 10% in Wednesday trading, turning around after more than doubling to kick off 2019. Roku stock sold for as low as $61.14 through 1 p.m. Eastern time Wednesday, 13.5% lower than Tuesday's closing price. Shares declined more than 4% Tuesday after closing higher than $74 Monday for only the third time in its history. In downgrading the stock to neutral from outperform Wednesday morning, Macquarie Research analyst Tim Nollen noted that shares were up 131% in 2019 to that point and wrote, "we believe it is difficult to justify the valuation." Nollen was one of two analysts to downgrade the stock Wednesday, while Suntrust Robinson Humphrey analyst Matthew Thornton increased his price target to $63 from $42 while maintaining a hold rating. "We are not chasing the stock here," he wrote.