96.30 +0.52 (0.54%)
After hours: 7:59PM EDT
|Bid||96.25 x 1200|
|Ask||96.30 x 1100|
|Day's Range||90.09 - 95.94|
|52 Week Range||26.30 - 95.94|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Earnings Date||Aug 6, 2019 - Aug 12, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||76.63|
Roku Inc. shares jumped another 6.2% Friday to close at $95.78, establishing a new record high for the fourth consecutive session. Roku stock has been on a roll since the streaming-television company reported strong revenue growth on May 8, gaining 47.5% since that date. For the week, Roku stock increased 14%, after jumping 27.3% in the week of its first-quarter earnings report. Shares have now more than tripled in 2019, gaining 212% this year as the S&P 500 index has gained 12.6%. The gains pushed Roku's market capitalization into 11 figures for the first time at the end of Thursday's session before closing Friday at $10.9 billion, according to FactSet.
It was a quiet trading session on Friday, with U.S. stocks rising modestly ahead of a three-day holiday weekend. Will we see more selling pressure next week or will positive trade talk give stocks a lift? When one tweet can move the market, it's impossible to say. So let's look at a few top stock trades out there. Top Stock Trades for Tomorrow No. 1: Roku Click to Enlarge The other day we opted to cover PepsiCo (NYSE:PEP) over Roku (NASDAQ:ROKU), but promised to look at the stock on Friday. Well, here we are and this beast has gotten even stronger. Shares are up more than 6% on the day and have risen above $95. The run has been nothing short of amazing.We've been pounding the table on Roku, calling it a buy in Q4 and Q1. Now it's almost up to $100 a share. Should you get long now?InvestorPlace - Stock Market News, Stock Advice & Trading TipsNo. Shares are up more than 70% in about five weeks. It has almost quadrupled from its December lows (not that it deserved to be that low in the first place). But the point is still the same: you've missed the boat.I love ROKU over the long term, but to think that we won't see sub-$95 prices again is absurd. With the stock overbought in the short-term and coming into possible resistance, hedging and/or taking some profits doesn't seem like a bad idea at this point … at least until lower prices come around. Top Stock Trades for Tomorrow No. 2: Splunk Click to Enlarge Splunk (NASDAQ:SPLK) is going splat, falling 7% on Friday after reporting earnings. The move forced a test of the 200-day moving average, which held as support.Aggressive bulls who feel compelled to go long SPLK stock can do so against Friday's low.I would love a lower open near the 200-day on Tuesday that quickly reclaims Friday's close and goes green. Preferably, SPLK would also reclaim the 50% retracement at $120.78 in the process. * 5 Safe Stocks to Buy This Summer If it falls under Friday's low, SPLK can go even lower. On a rally, we need to see if it can climb back to Friday's highs near $130, and/or the 20-day and 50-day moving averages. Top Stock Trades for Tomorrow No. 3: Autodesk Click to Enlarge Autodesk (NASDAQ:ADSK) is off by more than 5% on Friday after disappointing earnings results. Shares are bouncing off that $157.50 to $158 area, but are now meaningfully below the 50-day moving average for the first time since early January.Below $155.56 -- the 38.2% retracement -- aggressive bulls who are getting long on Friday's decline may want to consider stepping out. It would put ADSK below several key support levels and suggest that sellers have not yet exhausted themselves. In that case, look for a possible test of the 200-day.Reclaiming the 50-day would repair some of the damage, but beware that this level may act as resistance. That would give short-sellers an entry, with a retest of the $158 area in mind. Top Stock Trades for Tomorrow No. 4: Novartis Click to Enlarge Novartis (NYSE:NVS) stock is up almost 4% after getting approval for its $2 million-plus gene therapy treatment.The move has NVS hitting new highs in Friday's session. The stock has been largely limited by channel resistance and buoyed by channel support. As it hits channel resistance, we'll have to watch to see if NVS will break out to a new range, or be limited in upside as a result.As long as $84.50 to $85 holds as support, NVS looks good to buy on the dips.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 * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Safe Stocks to Buy This Summer * The 5 Best Telecom Stocks to Buy Now * 6 Innovative Stocks With Big Long-Term Growth Potential Compare Brokers The post 4 Top Stock Trades for Tuesday: ROKU, ADSK, SPLK, NVS appeared first on InvestorPlace.
Roku Inc (NASDAQ: ROKU) announced the addition of Activation Insights to its array of over-the-top advertising tools, the Ad Insights Suite. The advertising solution provides data analysis on consumers, enabling advertisers to maximize returns on investment from advertising on Roku’s platform, Forte said in a Thursday note.
Despite the weakness in the broader markets in May, not all stocks have suffered the same fate. One stock that has been a bright spot is Roku (NASDAQ:ROKU), the largest over-the-top streaming content provider. On May 21, ROKU stock hit an all-time high at $87.65.Source: Shutterstock U.S. consumers are moving from traditional pay TV services to streaming delivery services. And advertisers are following viewers. Therefore I would not bet against Roku shares longer-term.However, there is likely to be some profit-taking in the stock in the next few weeks. Such a decline would potentially offer investors better entry points if they decide to hit the buy button later in the year. With all of that in mind, let's look at what may be next for Roku stock.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 6 Stocks to Buy for This Decade's Massive Megatrend Where Is ROKU Stock Now?The streaming device platform Roku, which also is the leading connected TV manufacturer in the U.S., became a darling of Wall Street soon after its IPO in 2017. The price of Roku initially went up from an opening price of $15.78 to a high of $77 in just over a year, benefiting from the disruptive internet entertainment revolution that has made viewing more personalized.Then came the selloff in the last quarter of 2018 -- especially in the tech sector -- which was seen as an important signal that investors were no longer willing to be exuberant with technology stocks and their rich valuation numbers. On Dec. 24, Roku saw a 52-week low of $26.30.As Roku released two consecutive strong earnings reports first on Feb. 22 and later on May 8, bullish momentum came back into the stock and the stock kept rewarding the shareholders. Especially after the Q1 earnings released in May, Roku stock soared the next morning as well as the following several trading days. Year-to-date, ROKU stock is up over an eye-popping 170%. Roku's Business Model is EvolvingRoku stock's revenue can be divided into two segments. "Player" which represents sales of its digital media boxes, and "Platform" which includes advertising sales, licensing and other non-hardware revenue sources.In its earlier years, Roku's player segment accounted for about 75%, while its platform segment, which generates revenue mainly through advertising and content partnerships, provided the other 25%.However, these ratios have been changing rapidly. Now the platform segment accounts for the bulk of the company's sales. And Roku's device sales growth is decelerating. The expanding platform business, in return, means that the advertising business is growing.At present, Roku and Hulu, a video streaming service that is majority-owned by Disney (NYSE:DIS), are the market leaders in over-the-top (OTT) advertising. OTT ads are shown on a TV screen through a smart (connected) TV, or streaming device.For example, Roku sells display ads that it shows on its home screen and on its screen saver. The company also offers ads within the videos it streams from particular channels available through the player. ROKU's Impressive GrowthAccording to the earnings result of Feb. 22, in Q4 2018, ROKU's platform revenue, which made up about 45% of total revenue, grew 129% year-over-year (YoY).Then came the earnings release of May 8 which showed a 79% YoY increase in platform revenue to $134.2 million. Now, platform revenue accounts for 65% of total revenue. Roku's accelerating growth has led to a 51% YoY growth in total revenue, which reached $207 million.ROKU stock also reported strong Q1 sales for both Roku TVs and players. More than one in three smart TVs sold in the U.S are Roku TVs. It has indeed taken the lead from Samsung to become the number one selling Smart TV operating system (OS). Roku's OS, which is built specifically for televisions, is also available in Roku streaming boxes.The operating system enables Roku to have a direct relationship with its almost 30 million subscribers, who are increasingly spending more time on the platform.In its quarterly results, ROKU provides guidance on revenue, gross profit, net income, and adjusted EBITDA. In its Q1 2019 earnings, the group impressed investors with guidance on all four metrics that came above expectations for the rest of the year.Adoption of OTT video services will likely increase in double digits both in the U.S and overseas. And Roku management is also looking at international expansion as the next strategic area of growth.The company aims to grow the number of countries it operates in and to add local content to attract international viewers. However, analysts believe that it will be several quarters before Roku firmly establishes relationships with international retailers and manufacturers and successfully markets its products globally. Bulls vs. Bears amid Intensifying CompetitionRoku is a growth stock, but it's also a speculative stock. Long-term ROKU bulls happily highlight many of Roku's competitive advantages, starting with ROKU's first-mover advantage in OTT advertising, share of smart TVs sold in the U.S. and projected annual growth of over 30% in the rapidly expanding over-the-top streaming market.On the opposing side of the coin are the nervous investors and short-sellers who are looking for any excuse to short ROKU stock. They believe that the market is setting itself up for disappointment. Can Roku's future quarters indeed be as bright as investors want to believe?Unlike Netflix (NASDAQ:NFLX), Roku does not generate content. This is another reason why some investors worry that Roku's revenue growth through subscriptions may simply be not enough to justify the rich valuation. The company still operates at a net loss and is burning cash rather fast.ROKU is facing increasing competition on multiple fronts from several tech and media giants. Rivals such as Alphabet's (NASDAQ:GOOG, NASDAQ:GOOGL) Chromecast, Apple's (NASDAQ:AAPL) Apple TV, Amazon's (NASDAQ:AMZN) Fire TV as well as Disney+.Going forward, will Roku be able to not only hold but also gain ground? As these competitors continue to make their mark in the streaming platform landscape, investors may decide to take some money off the table, pressuring the recent price gains.In March, the stock was hit with several downgrades by analysts who voiced concern at stretched valuation levels. If the broader market does not go up as rapidly as it has done over the past few months, then the momentum in high-flying stocks like ROKU would slow down, too.If Roku cannot keep up with the aggressive growth assumptions, then shareholders may become more concerned with low profits as well as its margins and the stock price could easily suffer. In other words, could the market be getting ahead of itself? Short-Term Technical AnalysisAs a result of the impressive 2019 price gains, short-term technical indicators have become over-extended. Investors who pay attention to short-term oscillators should note that ROKU's technical message has also become "overbought."Therefore, in mid-March, following the downgrades, it was not surprising to see a rapid fall of 14% in one day on the headlines.While long-term investors would now like to see Roku go over the $90 level and reach $100, traders may push the price down and keep the range between $60 and $70, possibly until the next earnings repot in Aug. 2019.Thus in case of a broader market decline in the coming weeks, a pullback toward the mid-$60 level might occur in ROKU stock. The Bottom Line on ROKU StockROKU stock is likely to experience volatility in May and June. So investors should not rush to hit the buy button on Roku in the coming weeks. They may want to wait for the release of the next quarterly statement later in the summer to re-evaluate the balance sheet and the fundamentals.In recent months, ROKU stock has given investors a lot to be optimistic about and investors who buy the shares on the dips are likely to be rewarded handsomely within a few years.In the meantime, Roku may also find itself in the middle of a bidding war from the competitors to be acquired. After all it has experienced strong growth since its IPO and has an enviable advertising business that combines mobile with television.As of this writing, Tezcan Gecgil did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 6 Stocks to Buy for This Decade's Massive Megatrend * The 7 Best Stocks to Buy From the IPO ETF * 7 Athletic Apparel Stocks With Marathon Pace Compare Brokers The post Look for a Mid-Summer Turnaround for Roku Stock appeared first on InvestorPlace.
Three stocks that had been digesting recent gains now appear to be on the rise again. ArQule Inc. (ARQL) gained 42 cents to $7.17 on 2.6 million shares traded Tuesday. The move came on no news from the biopharmaceutical company.
Earlier this month, I wrote a bullish article on Uber (NYSE:UBER) stock. My thesis was simple. The Uber IPO was a dud because of short-term timing issues.Source: Shutterstock Those timing issues won't hang around forever. Once they pass - and they will pass quickly - investors will shift their focus to the long-term growth outlook of Uber. That long-term growth outlook is quite robust. As a result, once the Street begins focusing on the company's fundamentals, Uber stock will become a winner. * 7 Safe Stocks to Buy for Anxious Investors That has already happened. Uber stock dropped 20% below the Uber IPO price just a few days after the IPO. But, over the past ten days, Uber stock has rallied back to levels not far below the Uber IPO price.InvestorPlace - Stock Market News, Stock Advice & Trading TipsUber stock has rallied as timing issues faded and investors became more interested in growth stocks again.For several reasons, the strength of Uber stock will continue. Those reasons are outlined below. The Growth Trade Is BackFrom a macro perspective, growth stocks are back in favor, and that will help Uber stock price head higher.The Uber IPO occurred at a bad time. Investors were shying away from growth stocks amid rising international trade tensions. Their concern was that new tariffs, if in place for a long time, would simultaneously slow U.S. economic growth and raise prices and inflation. Higher prices would force the Fed to come off the sidelines and hike rates. In a slowing economy with rising rates, growth stocks don't do well.But the market has quickly moved past those issues. Concerns about trade were overstated, as many of the tariffs imposed by President Trump have grace periods and delays, implying that both sides still want to get a deal done soon. Meanwhile, the U.S. economy really isn't slowing by much, as first-quarter sales and earnings have been way stronger than expected. Additionally, inflation remains muted, so the Fed will stay on the sidelines.In other words, we are still in the midst of a strong economy with muted inflation. That environment is a dream combination for growth stocks. As a result, growth stocks will remain in favor, and that will help Uber stock price. Employees Won't Sell Uber StockAn important determinant of the performance of stocks that have recently gone public is insider sentiment. Specifically, skeptics often think that insiders use IPOs to unload shares to public investors, so that the insiders can sell their shares at favorable prices. Insider selling, in turn, pressures stocks, ultimately causing them to head lower.That may have happened to Uber stock during its first few days of trading. It's tough to tell. But the important thing is that the phenomenon probably won't last much longer.According to a survey by Blind, nearly 80% of Uber's employees believe that Uber stock is undervalued, while only 8% think it is overvalued. Employees own a great deal of Uber stock. There are lock-up periods and other restrictions which will prevent them from selling some of their shares anytime soon. But the fact that only 8% of employees think Uber stock is overvalued implies that, at these levels, there won't be much insider selling pressure.Without that insider selling pressure, buyers should remain in control of Uber stock price. Profitability Concerns Are OverstatedThe biggest knock against Uber stock is the amount of red on the company's income statement. The company generates billions of dollars in net losses every year, and its cash burn rate hasn't really improved all that much. Plus, it's facing big-time competition in the ride-sharing market, and that competition ultimately caps how high Uber's margins can go.But these profitability concerns are overstated.Here's a long list of stocks from the past few years which were all unprofitable at the time of their IPOs: Shopify (NYSE:SHOP), Square (NYSE:SQ), Roku (NASDAQ:ROKU), MongoDB (NASDAQ:MDB), and Okta (NASDAQ:OKTA). All of those stocks are up by tremendous amounts since their IPOs, mostly because their margins have risen as their businesses have grown, and, as a result, they are either already producing or are on the verge of producing sizable profits.Uber will be no different. Its gross margins are positive and climbing. Its operating-spending rate is falling and will continue to drop as its business grows. Thus, as Uber's gross margin rate rises and its operating-spending rate falls, it's only a matter of time before Uber becomes profitable. Uber's Long-Term Growth Opportunity Is TremendousThe biggest reason to buy and hold Uber stock for the long run is that this company is just scratching the surface of its global-growth potential.Uber is the global ride-sharing king. But ride-sharing currently accounts for only a few percentage points of global vehicle-based transportation. Current trends imply that ride-sharing should eventually become at least 20%- 30% of the global vehicle-based transportation market. A few of those current trends are as follows: * The coordinated economy. Read more about it here. * There are simply too many cars on the road. Population growth and urbanization will only aggravate traffic headaches. Lowering the volume of cars on the road through ride-sharing services simply makes sense, and will make transportation more convenient. * Ride-sharing can expand into new vertical markets, including transportation of goods and food. * The goods and food transportation verticals are primed for tremendous growth, thanks to the increased popularity of ordering food and clothes from home.All in all, the ride-sharing economy should grow by leaps and bounds over the next several years. Uber is the leader of multiple vertical markets within the global ride-sharing economy. As long as the company maintains this leadership position (and it should because of its unparalleled liquidity network effects), then Uber should continue to grow rapidly over the longer term, boosting Uber stock price in the process. The Bottom Line on Uber StockThe Uber IPO was a dud because of macro economic worries. Those concerns have faded. Now Uber stock is in the early stages of a long-term uptrend. If you bought the dip of Uber stock, hold onto it. If you didn't buy the dip previously, look to purchase the shares on any further weakness. This stock will be a long-term winner.As of this writing, Luke Lango was long UBER, SHOP, SQ, ROKU, MDB, and OKTA. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Safe Stocks to Buy for Anxious Investors * 4 Tech Stocks Looking Vulnerable * Should You Buy, Sell, Or Hold These 7 Hot IPO Stocks? Compare Brokers The post 4 Reasons to Buy Uber Stock on Weakness appeared first on InvestorPlace.
Roku, Inc. (ROKU) today announced Activation Insights, a powerful new tool to target audiences that have shifted to OTT. Activation Insights is part of Roku Ad Insights Suite, which helps brands measure campaign reach and effectiveness across linear TV and OTT. With deep first-party insights from Roku’s 29.1 million active accounts brands can now better model potential investment with Roku and estimate an unduplicated, incremental audience - whether the audience is light TV viewers and cord-cutters or viewers who were under or over exposed to a brand’s ads on linear TV.
U.S. stock futures are trading lower this morning.Heading into the open, futures on the Dow Jones Industrial Average are down 0.66%, and S&P 500 futures are lower by 0.79%. Nasdaq-100 futures have shed 1.58%.In the options pits, pre-weekend jitters were enough to power put volume to well above average levels. Specifically, about 20 million calls and 21.5 million puts changed hands on the session.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe mad dash for puts was on full display at CBOE, where the single-session equity put/call volume ratio rocketed to a new 2019 high at 0.81. The 10-day moving average followed suit, ramping to a new record for the year at 0.72.Options traders zeroed in on these three companies. Baidu (NASDAQ:BIDU) shares were in freefall after reporting its first quarterly loss as a public company. Tesla (NASDAQ:TSLA) fell to a fresh two-year low after a leaked company email revealed a worrisome cash burn rate. Finally, Roku (NASDAQ:ROKU) calls surged alongside the stock jumping to a new record intraday high.Let's take a closer look: Baidu (BIDU)Without fail, every earnings season includes a few bad apples. These unlucky few not only miss expectations but do so in such an epically bad fashion that their stock prices suffer an instant double-digit drawdown. Baidu became such an example with a 16.5% plunge on Friday. * 10 Baby Boomer Stocks to Buy For the quarter, the king of internet search in China lost money for the first time since going public in 2005. A 53% jump in operating expenses coupled with a huge slowdown in online marketing revenues, which only grew 3%, were the top causes for the disappointing numbers.With Friday's whack, Baidu's stock price now sits at a six-year low and is down 55% from its all-time highs. Its price trend is pointing lower across all time frames.On the options trading front, puts slightly outpaced calls on the session. Activity grew to 503% of the average daily volume, with 222,895 total contracts traded. Puts accounted for 53% of the sum.Given the enormous gap, volatility buyers came out as massive winners. Implied volatility wasn't all that high ahead of the event and actually rallied afterward to 36%, which places it at the 37th percentile of its one-year range. Premiums are now pricing in daily moves of $2.89 or 2.3%. Tesla (TSLA)A leaked memo sent Tesla shares skidding 8% on Friday (and another 4.3% this morning) amid concerns that the electric car maker is running out of cash. According to Electrek, CEO Elon Musk told employees in an email that the company is implementing aggressive cost-cutting measures to slow how quickly the company is burning through its cash reserves.Tesla is poised to open Monday at a fresh two-year low. Not that weakness is anything new. TSLA stock has been sliding all year long and now sits 50% off its all-time high. With all major moving averages pointing lower and heaps of resistance overhead, all future rallies must be viewed with skepticism.On the options trading front, puts surged as traders took to the derivatives market for protection. By day's end, total activity climbed to 189% of the average daily volume, with 555,397 contracts traded; 62% of the trading came from put options alone. * 7 Tech Stocks to Buy That Are Also Perfect for Retirement The increased demand drove implied volatility higher on the day to 64%, placing it at the 35th percentile of its one-year range. Premiums are baking in daily moves of $8.48 or 4%. Roku (ROKU)Ever since last month's rousing earnings release, Roku shares have been flying high. Although the day's gains were pared by the closing bell, ROKU stock notched a new intraday record high at $87.14. The strength is impressive, given the backdrop of a market that can't seem to find its footing.ROKU sits atop a rising 20-day, 50-day and 200-day moving average. Volume patterns have heavily favored buyers for the past two months with nary a whiff of distribution. There are plenty of support levels looming beneath, so consider the stock a buy into any weakness.On the options trading front, calls reigned supreme on the session. Activity jumped to 148% of the average daily volume, with 105,339 contracts traded. Calls claimed 63% of the total trading.Implied volatility slid sideways to 54% and now sits at the 21st percentile of its one-year range. Premiums are pricing in daily moves of $2.88 or 3.4%.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 * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Yield REITs to Buy (Even When the Market Tanks) * 5 Great Blue-Chip Stocks to Buy Today * 7 Tech Stocks to Buy That Are Also Perfect for Retirement Compare Brokers The post Monday's Vital Data: Baidu, Tesla and Roku appeared first on InvestorPlace.
Streaming video is more popular than ever with 1 million people cutting their cable cord last quarter alone, Roku CEO Anthony Wood told CNBC's Jim Cramer Wednesday evening. "One of the things about Roku, we have succeeded by building a great user interface, making it super easy to use," he said. Comcast Corporation (NASDAQ: CMCSA)'s Xfinity Flex streaming service, for example, was made available to internet customers for just $5 a month.
Roku, World Wrestling, Cisco and Jack in the Box highlighted as Zacks Bull and Bear of the Day
In his second "Executive Decision" segment of Mad Money Wednesday night, Jim Cramer also sat down with Anthony Wood, chairman and CEO of Roku, Inc. The share price of ROKU is up 31% this month alone. Wood said that streaming media is more popular than ever and about half of Roku users don't have a cable TV package at home.
I don't mind admitting when I'm wrong. And I was wrong about Roku (NASDAQ:ROKU) stock.Source: Shutterstock When I wrote last October that it couldn't compete with the Cloud Czars in the long run, I was wrong. When I wrote more recently that it was not for the squeamish, I was wrong.While it remains true that Roku could easily be bought by whichever of the Cloud Czars finds itself trailing in the growing streaming market, or by such entertainment companies as Walt Disney (NYSE:DIS) or Comcast (NASDAQ:CMCSA), that merely adds to the investment case after it blew out estimates on first-quarter earnings.InvestorPlace - Stock Market News, Stock Advice & Trading TipsRoku lost $9.7 million, 9 cents per share, during the quarter, against a loss of $6.6 million, 7 cents per share, a year ago. But inside the numbers, there was a lot to cheer. Growth at RokuRoku sells a streaming stick and technology it can pre-install with TVs, and operates an ad-based streaming service on top of it. This means it has both sales and platform revenues, the latter being key to growth. During the first quarter, those ad revenues nearly doubled, going from $75 million in 2018 to $134 million. Ads now represent two-thirds of revenue, meaning Roku has a sustainable revenue base. * 10 Retirement Stocks That Won't Wilt in a Bear Market At the end of March, Roku had 29.1 million streaming accounts, up 40% from a year ago, but more important average revenue per user was up 27% from a year ago, to $19.06. The company sees this growth continuing, with revenue for the full year now estimated at over $1 billion.Roku has pitched itself as a TV operating system, sitting between Internet accounts and streaming customers. Unlike the Amazon.Com (NASDAQ:AMZN) Fire Stick, Alphabet's (NASDAQ:GOOG, NASDAQ:GOOGL) Google Chromecast or Apple (NASDAQ:AAPL) TV, it's completely neutral as to what else you buy.Consumers can go to a store and pick up the Roku stick for under $50, plug it into the HDMI plug of their flat-panel TV, go through a few menus to link it to their WiFi, then cancel their cable subscription and buy just the streaming services they want to use.This is called "cord cutting" although it really isn't, because you still have that ISP account. But 1.28 million U.S. households cut out cable in the first quarter. Netflix (NASDAQ:NFLX) could have twice the audience of cable within five years. Roku will be happy to sell it to you. A Wild RideThis doesn't mean Roku won't remain volatile, but volatility can work both ways.In the wake of earnings May 8, Roku rose 28% in one day. The price is well above its September high. The market cap is now $9.4 billion, compared with $11.78 billion for Viacom (NASDAQ:VIAB), home of MTV, Nickelodeon and Comedy Central.Roku is still affordable for CBS (NYSE:CBS), which has a market cap of $18.3 billion, or Discovery (NASDAQ:DISCA), which is worth $21.8 billion. But a move by either of these companies, or the cable giants, is liable to set off a highly lucrative bidding war.With demand for an independent streaming solution proven, there's almost no way Roku can lose. The Bottom LineRoku streaming sticks are made in China and cost just a few dollars there. Roku also re-sells TVs with its technology pre-installed, and it's the number-one smart TV brand. Prices on this gear are bound to rise with tariffs. Trade wars also spark recession fears. This will also weigh on the stock in the near term.But peace is bound to break out in time. Even a rumor of trade peace will bring in buyers. So, let the panic settle, then get in on the gains.Dana Blankenhorn is a financial and technology journalist. He is the author of a new environmental story, Bridget O'Flynn and the Bear, available now at the Amazon Kindle store. Write him at firstname.lastname@example.org or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in AMZN and AAPL. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Retirement Stocks That Won't Wilt in a Bear Market * 5 Consumer Stocks Ready to Push Higher * 3 of the Best ETFs to Buy for a Play on Gold Stocks Compare Brokers The post Roku Is a Ray of Light in a Dark Time appeared first on InvestorPlace.
Apples's TV app is getting a slew of new features, ahead of the launch of its its streaming video service.
Roku (ROKU) share price skyrocketed last week, propelling shares to a new all-time high as investors were delighted by stronger-than-expected first-quarter earnings. Since this time last year, the company saw accounts rise 40%, to nearly 29.1 million, as higher revenue per user contributed to total revenue surging 51%, to more than $200 million. Yet, even as investors poured into the stock yesterday, Wedbush analyst Michael Pachter is holding to this Neutral rating, but raises his price target by $10, to $65. (To watch Pachter's track record, click here)Though Pachter is neutral on ROKU stock, the analyst sees the company continuing to grow. Pachter says, “Roku has built an exceptional platform on the back of its players, and as it expands in the rapidly growing Smart TV category, it has positioned itself as best in class for OTT advertising and is poised for international expansion.” On a product level, Pachter believes Roku’s new offering of Premium Subscriptions on The Roku Channel (TRC) “likely drove adoption of Roku’s free ad-based content in addition to subscription fees.” Furthermore, while some may look at new SVOD apps like Apple+ and Disney+ as a threat to the platform, Pachter says these are “a positive for Roku, as it earns perpetual revenue share for users that sign up on its platform.” While Roku would directly benefit from SVOD sign ups from its platform, Pachter says increased SVOD options “is contributing to increased cord-cutting and grow the overall pool of active users for the Roku platform.” Conversely, if users find that TRC is unable to keep up with SVOD competitors on content, it is also possible that engagement shifts from TRC to the competition, which would risk advertising revenue growth. Pachter is optimistic that the company has room to grow, but is wary about the costs associated. In order to compete with Google and Amazon on TV licensing, for example, Roku must continue its high spending on R&D. And in order to expand overseas, Pachter says the company has to spend “handsomely.” And content spending must continue in order for TRC to compete with rival SVODs. So while Pachter believes, “Roku has substantial growth opportunities,” this is currently priced in to his updated $65 price target.All in all, while a strong earnings release was enough to send ROKU soaring, the stock still hasn’t won over all of Wall Street. TipRanks’ analysis of 14 analyst ratings shows a Moderate Buy consensus, with seven analysts recommending Buy, five saying Hold and two recomnned Selling. The average price target among these analysts stand at $69.93, and represents a 15% downside, though this is most likely a result of analyst’s not reacting quickly enough to Roku’s surge.If you liked this analyst news article on ROKU, you should check out the Top Nasdaq Stocks section as well. More recent articles from Smarter Analyst: * Micron's (MU) Tech Roadmap Highlights Flattening Cost Curve, Says Analyst; Reiterates Neutral on the Stock * Time to Cash Out on Cannabis Stock Canopy Growth (CGC) * GW Pharmaceuticals (GWPH) Stock Could Run Much Higher Over Time * Trade Tensions Bring Micron (MU) Stock Down, But Cascend Remains Bullish