88.00 -0.02 (-0.02%)
After hours: 5:49PM EDT
|Bid||88.00 x 1200|
|Ask||88.10 x 1400|
|Day's Range||86.47 - 89.35|
|52 Week Range||26.30 - 89.35|
|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 (ROKU) is slated to announce earnings Wednesday, as investors are hoping that strong performance pushes the stock price even higher than current levels. The company posted very strong results in its holiday quarter, which has served as a major catalyst for its stock rising over 100% since the beginning of the year. But investors have pulled back slightly causing share prices to drop about 14% since its 2019-high reached in March. Wedbush analyst Michael Pachter doesn’t see this pullback as a short-term fad, as he reiterates a Neutral rating on ROKU stock with $55 price target, which implies nearly 13% downside. (To watch Pachter's track record, click here)Ahead of the print, Pachter expects Q1 revenue of $195 million (consensus $192 million, guidance $185 – 190 million), with adjusted EBITDA of $(4) million (consensus $(9) million, guidance of $(12) – (8) million), and non-GAAP EPS of $(0.22) (consensus of $(0.25)). Overall, and though the analyst is not bullish on Roku’s stock, he expects the company do perform better than both Wall Street consensus and the company’s own guidance. Pachter expects the main driver of growth to come from Platform revenue, which the analyst estimates will grow 70% since Q1 of last year. Pachter says Platform will be “driven by active account growth of 38% year-over-year and ARPU growth of 26% year-over-year, largely due to the expansion of [The Roku Channel].” With the market becoming more crowded, Pachter views “Apple+ and Disney+, along with other new content apps, as a mixed bag for Roku,” as, while “Roku will earn revenue share for users that sign up on its platform….this may take eyes and time away from TRC (The Roku Channel), putting advertising revenue growth at risk.” Pachter says TRC is “Roku’s fastest growing contributor to overall revenue growth and ARPU,” and believes the channel has “significant” international potential, though the company “must spend handsomely to expand.” Another headwind is the “collaboration” between Amazon and Google, which brings YouTube to Fire TV and Prime Video to Chromecast, with Pachter saying it adds “a layer of complexity.” Prior to this, competition between the two “had given Roku a competitive advantage as it had both apps on its platform.”All in all, though its stock is up nearly double in the first four months of the year, there isn’t overwhelming support for Roku from the analyst community. Wall Street almost evenly split between the bulls and those choosing to play it safe. Based on 12 analysts polled by TipRanks in the last 3 months, 5 rate a Buy on ROKU stock, 5 maintain a Hold, while 2 issue a Sell. The 12-month average price target stands at $$64.18, suggesting the stock is fairly valued.If you liked this analyst news piece on ROKU, you should check out the Top Nasdaq Stocks section on Smarter Analyst. Read more on ROKU: * Top Analyst Remains Bullish on Roku Stock Ahead of Earnings * With Streaming More Popular, Is Roku (ROKU) Stock a Good Investment? * Roku Inc (ROKU) Stock Could Stay Grounded… For Now More recent articles from Smarter Analyst: * Will Qualcomm (QCOM) Stock Price Get Back to $60-65? Not So Sure * Putting General Electric Management Under the Microscope Is Bad News for GE Stock * Tesla (TSLA) Stock Isn’t a Bargain, Despite Recent Sell-Off, Says Needham * Analysts Pound the Table on Pareteum (TEUM) Stock
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: * Will Qualcomm (QCOM) Stock Price Get Back to $60-65? Not So Sure * Putting General Electric Management Under the Microscope Is Bad News for GE Stock * Tesla (TSLA) Stock Isn’t a Bargain, Despite Recent Sell-Off, Says Needham * Analysts Pound the Table on Pareteum (TEUM) Stock
U.S. stock futures are trading down hard amid continued trade war concerns. The weak open comes after buyers mounted a strong comeback on Friday and unfortunately suggests that whipsaw and elevated volatility is here to stay for a spell.Ahead of the bell, futures on the Dow Jones Industrial Average are down 1.92%, and S&P 500 futures are lower by 1.97%. Nasdaq-100 futures have shed 2.58%.In the options pits, put volume surged passed calls helping to push overall volume levels well above average. Specifically, about 20.8 million calls and 22.1 million puts changed hands on the session.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe dash for puts made waves at the CBOE as well with the single-session equity put/call volume ratio rocketing to 0.80 -- a new 2019 high. The 10-day moving average also jumped to a new high for the year at 0.65.Today we'll look at three big hitters landing atop the options trading leaderboard: Lyft (NASDAQ:LYFT), Roku (NASDAQ:ROKU) and Amazon (NASDAQ:AMZN).Let's take a closer look: Lyft (LYFT)Lyft shares skidded to a new all-time low Friday at $50.02 after plunging 9.4%. The losses came alongside a poorly received IPO for Uber (NYSE:UBER), which saw the transportation titan fall 1% in a volatile session.The technical picture for LYFT stock has been ugly ever since its late-March IPO. We've seen one small bottoming attempt that was dashed by disappointing earnings. Short of that, LYFT's trajectory has been virtually straight down making it a widowmaker for anyone trying to make money on the long side. Until we see a bona fide break of resistance and the emergence of an uptrend, I suggest steering clear of any bullish plays. * 10 Stocks That Could Squeeze Short Sellers, Including CGC On the options trading front, Uber stock's IPO lit a fire under LYFT options. Puts only slightly outpaced calls on the session taking 51% of the total. Activity swelled to 298% of the average daily volume, with 238,202 contracts traded.Implied volatility rallied on the day to 66%. Roku (ROKU)The rousing rally in Roku continued on Friday but ultimately fizzled by the end of the day amid well-deserved profit taking. ROKU stock ended down 0.50%. Thursday's post-earnings pole vault thrust ROKU back on the radar of momentum traders everywhere and it's likely to remain a favorite for weeks to come.What's particularly impressive about last week's performance in Roku is that it took place during a time when the rest of the market was terrified by tariffs. The relative strength makes ROKU one of the best stocks to buy into weakness.On the options trading front, calls proved more popular than puts. Activity climbed to 269% of the average daily volume, with 175,526 total contracts traded. Calls accounted for 55% of the tally.Implied volatility dropped dramatically after earnings last week and now sits at 58% or the 26th percentile of its one-year range. Premiums are pricing in daily moves of $3.01 or 3.6%. Amazon (AMZN)Amazon notched its fifth straight down a day ahead of the weekend, closing beneath its 20-day moving average for the first time since March 8. For all its fury, the drop has been quite tame. From peak to trough, AMZN stock is only down 3.8%.That said, we did see slowing momentum before the retreat, so the overall uptrend may be shifting to more of a neutral posture until the latest flare-up in the trade war passes. Given the strength of Amazon's intermediate and long-term trends, I suspect any further weakness will prove temporary.On the options trading front, traders gobbled up calls Friday. Activity jumped to 193% of the average daily volume, with 338,244 total contracts traded; 57% of the trading came from call options alone.Implied volatility slipped to 27% placing it at the 31st percentile of its one-year range. Premiums are baking in daily moves of $31.93 or 1.7%.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 * 7 Dividend Stocks to Buy as the Trade War Reignites * 10 Stocks That Could Squeeze Short Sellers, Including CGC * 5 Tech Stocks Getting Crushed Compare Brokers The post Monday's Vital Data: Lyft, Roku and Amazon appeared first on InvestorPlace.
New highs and a stock that has soared nearly sixfold in its first 20 months of trading have made Roku a market darling. The climate continues to grow even more inviting.
A big win for Roku (NASDAQ:ROKU) following earnings suggests investors should continue to tune into ROKU stock for buying opportunities in the days and weeks ahead. So is it time to join the pack?Source: Shutterstock Wall Street's massively bullish reaction to ROKU stock's latest earnings confessional is proving the stock market is a market made up of stocks. Shares of Roku hit new highs for a second straight day and are on pace to finish up nearly 26% this week despite trade war negotiations dragging the mid-cap S&P 400 down by nearly 3.65% for the five-day period.Behind the impressive performance, Roku, the market's largest over-the-top streaming content provider, smashed Wall Street estimates across-the-board when it reported earnings Wednesday night. Highlights of the Q1 confessional include strong ad sales growth of 79%, total streaming hours surging by 74% to 8.9 million hours, a loss of just 9 cents per share versus forecasts of 26 cents and overall revenues of $207 million topping expectations of $190 million.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAnd the forecast looks even brighter for Roku as Disney (NYSE:DIS) enters the streaming market with its Disney+ service this fall. The move has the entertainment giant going head-to-head against Netflix (NASDAQ:NFLX) and Amazon (NASDAQ:AMZN), which as Roku's CEO noted, "When they win, we win in terms of economics." * 10 Stocks That Could Squeeze Short Sellers, Including CGC I'd go on to state, investors are also positioned to keep winning on the price chart of ROKU, but having a bit of patience is key. ROKU Stock Weekly Chart Click to EnlargeLet's start by stating that as a mid-cap growth stock shares of ROKU are inherently volatile. This means owning Roku stock can be punishing if purchased too early and aggressively nasty, even when an uptrend, like the one today, is in place. Having said that, ROKU is likely to give investors a stronger buying opportunity next week.With Friday's highs near channel resistance, nearly completing a Fibonacci two-step pattern, and given the size of this week's gains, the technical assessment is Roku stock is more likely than not to offer bulls a pullback pattern.Typically and for a smaller cap, growth name like ROKU, this counter-trend formation could be expected to be very brief and not terribly deep before a resumption of momentum takes hold. Given today's questionable broader market, buying into a two- to maybe five-day pullback in conjunction with shares holding above $75 looks about right in Roku's trade war with bears on the price chart.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 Cloud Stocks to Buy on Overcast Days * 6 Stable Stocks Worth Buying for Protection * 5 Active Vanguard Funds That You Have to Own Compare Brokers The post Why You Shouldn't Buy Roku Stock Until It Reaches $75 appeared first on InvestorPlace.
The company's earnings results shined, but it's how the streaming pioneer got there that should be exciting investors.
U.S. stock futures are trading lower after President Trump made good on his threats to increase tariffs against China. The U.S. raised duties from 10% to 25% on $200 billion of Chinese goods.Against this backdrop, futures on the Dow Jones Industrial Average are down 0.47%, and S&P 500 futures are lower by 0.59%. Nasdaq-100 futures have shed 0.64%.In the options pits, call and put volumes exploded yesterday, signaling what may have been capitulation in the downswing. Specifically, about 21.3 million calls and 23.6 million puts changed hands on the session.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMeanwhile, over at the CBOE, the single-session equity put/call volume ratio zipped to a six-week high of 0.70. The 10-day moving average followed suit popping to 0.64, which is a two-month high.Options traders thronged in Intel (NASDAQ:INTC), Roku (NASDAQ:ROKU) and Amazon (NASDAQ:AMZN).Let's take a closer look: Roku (ROKU)Roku was the talk of the town Thursday after a smashing earnings release pole vaulted the stock 28% higher to a new record. For the first quarter, the streaming-TV company scored revenue of $206.7 million, which sailed past analyst estimates calling for $192 million.On the earnings side, the company lost 9 cents per share, which came in far less than expectations for a 24 cent loss.ROKU stock ended the day with one of the largest green candlesticks you'll ever see. The volume accompanying the rally was also record-shattering with 56.7 million shares traded. This is a new high-water market for participation during a single session.The price trend now carries strong momentum, but bulls will find it challenging to identify a low-risk entry point. A pullback or consolidation will help in creating a new buy setup.As far as options trading goes, calls won the day, if slightly. Activity ballooned to 493% of the average daily volume, with 280,943 total contracts traded. Calls claimed 53% of the day's take. * 10 Monthly Dividend Stocks to Buy to Pay the Bills Traders crushed implied volatility down to 63%, which places it at the 34th percentile of its one-year range. Premiums are baking in daily moves of $3.28 or 3.9%. Intel (INTC)Dour remarks from Intel during an investor event sent its shares skidding 2.62% on heavy volume. The company issued a three-year outlook that revealed tepid revenue and earnings growth as well as shrinking gross margins. Thursday's losses compound the recent pain inflicted after the stock slumped after its disappointing April earnings announcement.INTC stock has officially unwound all of its 2019 gains and now sits negative year-to-date. It has submerged beneath the 20-day, 50-day and 200-day moving averages reflecting mass weakness across all time frames. Major support looms at $43 so consider that the next downside target.On the options trading front, traders paraded into puts on the session. Activity swelled to 254% of the average daily volume, with 310,192 total contracts traded. Puts accounted for 55% of the sum.The increased uncertainty drove implied volatility to 33% placing it at the 50th percentile of its one-year range. Flush premiums are now baking in daily moves of 96 cents or 2.1%. Amazon (AMZN)The mid-day market recovery buoyed Amazon shares into the close. With the rebound, the e-commerce king was able to hold short-term support and keep its uptrend intact. That said, its uptrend is slowing in momentum so some additional time may be needed before it can recapture the bullishness that propelled AMZN through March and April.The key level to watch is $1,875. As long as we remain above it, buyers hold the upper hand.On the options trading front, calls outpaced puts by a modest margin. Total activity ticked higher to 117% of the average daily volume, with 201,597 contracts traded. Calls were 58% of the amount.Implied volatility crawled higher to 29%, placing it at the 35th percentile of its one-year range. Premiums are baking in daily moves of $34.43 or 1.8%.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 * 7 Cloud Stocks to Buy on Overcast Days * 6 Stable Stocks Worth Buying for Protection * 5 Active Vanguard Funds That You Have to Own Compare Brokers The post Friday's Vital Data: Intel, Roku and Amazon appeared first on InvestorPlace.