132.30 -0.13 (-0.10%)
After hours: 4:11PM EST
|Bid||132.48 x 900|
|Ask||132.49 x 900|
|Day's Range||132.31 - 140.50|
|52 Week Range||39.78 - 176.55|
|Beta (5Y Monthly)||1.54|
|PE Ratio (TTM)||N/A|
|Earnings Date||Feb 12, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||146.75|
Investing.com – Roku struggled to turn positive Wednesday, but one analyst sees further gains ahead as the company shows signs of progress in expanding internationally.
As with all rapidly growing companies, Roku (ROKU) has enjoyed significant upward growth trajectory, even while it continues to experience a lot of volatility. For investors willing to hold on during turbulent times, the company should reward them over the long term.In this article we'll look at why its growth narrative remains in place, and why it'll probably take some time before it starts to turn a consistent profit.Most recent numbersIn its latest earnings report Roku stated it generated revenue of $261 million, up 50 percent over the same reporting period last year. Most of that was the result of its active user accounts jumping 36 percent, and its average revenue per user climbing 30 percent.Another factor is Roku has been changing its focus from set-top boxes to media software, which produces wider margins for the company.Earnings will remain negative for now because it's taking the bulk of its revenue and reinvesting it into growing its top line. With its major competitor being Amazon, it can't afford to take its foot off the accelerator, otherwise it could lose a lot of its momentum, and would find it extremely difficult to make up ground.At this time Amazon's Fire TV has over 40 million monthly active users, while Roku has about 32.3 million monthly active users. Roku has more room for growth because it only operates in 20 countries as of the end of the last reporting period, while Amazon has a presence in over 100 countries.Moving from a smaller customer base and much smaller international footprint, Roku will grow at a higher rate than Amazon going forward. Depending on its pace of expansion, it's possible in the not-too-distant future that Roku will be running neck and neck with the e-commerce giant in this space.Expectations are in the next earnings report the gap between Amazon and Roku monthly active users will shrink, based upon the history of its performance in the fourth calendar quarter. Further out, it should be able to incrementally chip away at Amazon's lead. The pace of Amazon's growth will determine the length of time it'll take for Roku to possibly surpass Amazon's active user base.The most important thing to consider is that Roku has a lot of upside growth left in it before it starts to slow down. By the end of fiscal 2020, analysts see Roku's active users increasing to as high as approximately 44 million.Manufacturing TV base growingAt CES Roku announced it was increasing the number of manufacturers for Roku TV in the European and North American markets to 15. These include but aren't limited to heavyweights like Hitachi, JVC, RCA, Hisense, Sharp, and Magnavox.Not only that, but a couple of the manufacturers are increasing the number of models Roku TV will be included in.It should be noted that while the increase in manufacturers is impressive, there will be some cannabilization of its existing manufacturers. For that reason expectations need to be managed, but it's still a solid positive for the company.Consensus VerdictWall Street is quite positive on this streaming giant: Roku has received 10 'buy,' 1 'hold' and 2 'sell' ratings in the past three months. Running the numbers across the Street, the 12-month average price target lands at $149.50, representing about 15% upside from current levels. (See Roku stock analysis on TipRanks)ConclusionOver the last year Roku has been releasing earnings reports that surpass expectations; both in revenue and earnings. In some reports is wildly exceeded expectations. I believe it still has enough gas in the tank to continue to do so, although with more analysts and investors putting Roku on their radar, it's going to be harder to surprise the market as expectations rise.For now, investors are being patient on the earnings side of the business, understanding it must spend in order to increase its top line performance before it starts to be concerning with its bottom line. And as mentioned above, it has been able to cut losses in some of its quarters.Roku remains an excellent growth story. Even so, its string of strong quarters does generate some concern if it misses for the first time in awhile. That would crush the stock in the short term, depending on management commentary as to the reasons behind it.The future looks bright for Roku, but it's not a stock for the feint of heart. It will continue to be volatile, and if Amazon is able to beat expectations with its Fire TV, it'll be rightly perceived that Roku could take longer to match its active user base. That wouldn't be a disaster in any way, but it would slow its pace of growth and share price trajectory.I think the company has a lot of momentum left in it. As it expands to other markets and increases its manufacturing base for TVs using its product, it should continue to enjoy solid growth for some time.Eventually its pace of growth will slow down, but I don't think that time is yet.To find good ideas for tech stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
It might seem a little incongruous to suggest Roku (ROKU) could be this decade’s Netflix. However, following a breakout year, the claim might not be such an outlandish one to make. Netflix was the 2010s’ most successful stock, and similarly disruptive. So, could Roku have the same impact in the 2020s?Roku’s share price rose by 349% in 2019, bolstered by a series of earnings reports that beat the Street’s estimates. While investors are surely happy with such mighty returns, the big question is whether now is really the time to invest in the streaming player company.According to some on the Street, Roku has several catalysts which could propel it further ahead in 2020.International Market PenetrationWhile Roku is practically a household name in the US, it is far from ubiquitous in other markets. Until recently, Roku had no significant international OEM (Original Equipment Manufacturer) partnerships. This all changed on January 6 with the announcement that 15 TV brands will launch Roku TV models in not only the U.S., but also in Canada, Mexico and the UK. More announcements of this kind are expected later this year and are set to provide big account growth for the company.Roku has also been gearing up for the European market, spending significant resources and engineering hours building a tuner-card for the region. The “heavy lifting” according to CFO Steven Louden has already been done and now only slight country-specific adjustments need to be made to each country’s rollout.Roku’s recent UK launch has been successful so far and RBC’s Mark Mahaney thinks international markets will be a key growth initiative in 2020. The 5-star analyst said, “Roku accounts for 35-40% share in terms of Active Accounts in the U.S. and while there may be some more opportunity for the company to grow domestically, we believe that International markets now offer a much larger, untapped opportunity for Roku.”Streaming WarsWith the recent launches of Disney+ and Apple+, and further ones on the way – HBO Max, Comcast, etc.- Roku’s agnostic nature means it stands to benefit from a proliferation of services. According to Mahaney, the trend will benefit Roku in at least three ways: “i) it should serve as a highly effective customer acquisition channel for new OTT launches and offerings given its 32MM active accounts; ii) it should be able to generate potential material new AVOD and SVOD revenue-share revenue; and iii) potential further streaming fragmentation should reduce Roku’s dependence on Netflix, YouTube, and Amazon.”To this end, Mahaney reiterated an Outperform rating on Roku and kept his price target of $160, indicating possible upside of 20%. (To watch Mahaney’s track record, click here)The Rest of the Street’s TakeOn the Street, Roku currently ranks as a Moderate Buy, with a breakdown of 10 Buys, 1 Hold and 2 Sells. With an average price target of $149.50, analysts believe Roku has further fuel in the tank to add an additional 12% to its share price in 2020. (See ROKU stock analysis on TipRanks)
With no reason to sell off, why wouldn't stocks continue higher on Monday? Let's look at a few top stock trades for Tuesday, when earnings season will begin with the banks. Top Stock Trades for Tomorrow No. 1: Canopy Growth (CGC)Source: Chart courtesy of StockCharts.comThe cannabis space is far from being out of the woods, but there are two names in the group that I have liked recently, one of which is Canopy Growth (NYSE:CGC).Canopy shares are hitting their highest level since October, as shares push higher on Monday. In doing so, CGC is reclaiming both the $22 level and the 100-day moving average.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIt might get there in a few days or it might take a few months, but a rally up and over $25 into the upper-$20s shouldn't be out of the question now. * 7 Inflation-Beating REITs to Ground Your Income Portfolio On the downside, it would be best for CGC to hold $21.50 as support. Below that level and bulls will need to see the 50-day and uptrend support (purple line) need to hold as support. Top Stock Trades for Tomorrow No. 2: AT&T (T)Source: Chart courtesy of StockCharts.comResistance continues to hold near $39 for AT&T (NYSE:T), while Monday's pullback is sending T stock right into the 50-day moving average and uptrend support (blue line). This one is simple now.Below uptrend support and the 100-day moving average is in play. Below that and the $36 to $36.50 area is possible. If current support holds, look for a rebound back up to $39. If it can get over that level, AT&T could be looking at $40-plus. Top Stock Trades for Tomorrow No. 3: Roku (ROKU)Source: Chart courtesy of StockCharts.comWhile many growth stocks have been rallying, Roku (NASDAQ:ROKU) has been struggling. Shares did reverse off $127 support on Monday, but still face downtrend resistance (blue line) overhead.Falling below the 20-day and 50-day moving averages does not bode well for momentum, but Roku isn't completely stuck.A move back over downtrend resistance and the 50-day moving average could trigger a rally up to $150-plus. However, a move below $127 puts the $117 to $120 area on watch, with the 200-day moving average just below. Top Stock Trades for Tomorrow No. 4: Aphria (APHA)Source: Chart courtesy of StockCharts.comAt the top, I mentioned that I liked two cannabis stocks. CGC was the first and Aphria (NYSE:APHA) is the other. The latter isn't moving quite as nicely as the former, but it's showing breakout potential.Rallying into the 100-day moving average and downtrend resistance (blue line) now, APHA stock has a chance to power higher and draw in buyers.A move over $5.50 would add to its momentum and put the declining 200-day moving average in play. If it can't hurdle current resistance, see that it holds up over the 50-day moving average. Below that level puts $4.50 back on the table. Top Stock Trades for Tomorrow No. 5: Invitae (NVTA)Source: Chart courtesy of StockCharts.comWhat a wild ride it has been with Invitae (NASDAQ:NVTA). Shares are surging higher on Monday after an update from management on Sunday night regarding 2019 results and 2020 guidance.The news sent shares higher by about 10%, with many longs wondering if this is the start of something big or if it will ultimately deflate like the last pop.The stock is back over $17, while uptrend support (blue line) continues to hold. Shares are clearing downtrend resistance (purple line), and while investors will be looking at $20, that's not the level to watch. Instead, it's the 50-week moving average at $20.55.Over that level and NVTA can really start to find its momentum.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, T, APHA and NVTA. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Inflation-Beating REITs to Ground Your Income Portfolio * 7 Healthcare Stocks to Buy or Sell As Pricing Pressures Mount * 7 Earnings Reports to Watch This Week The post 5 Top Stock Trades for Tuesday: CGC, T, ROKU appeared first on InvestorPlace.
Investing.com - Streaming television service Roku enjoyed a rally Monday after a Wall Street analyst gave a thumbs up to the company’s presentation at the Consumer Electronics Show last week.
Love it or hate it, and people certainly do both, Roku (NASDAQ:ROKU) stock is a growth name that comes with a related risk/reward profile. That much was on display last year when shares of the streaming entertainment hardware maker more than tripled in value.Source: AhmadDanialZulhilmi / Shutterstock.com Of course, when a company is flying high in a rapidly growing industry, it's sure to draw competition, and markets will price in the competent threats when valid. The latest concern on that front, playing a big part in ROKU stock's 8% decline over the past month, is news that Amazon's (NASDAQ:AMZN) Fire TV streaming device has topped 40 million users, well ahead of Roku's 32.3 million.The other recent drag on ROKU stock was last month's news that long-time Chief Financial Officer Steve Louden is departing. Louden has held that position with the company since October 2015 and Wall Street loves c-suite consistency.InvestorPlace - Stock Market News, Stock Advice & Trading Tips"Steve has been a valuable member of our leadership team. He managed our finances through our transition to a public company and rapid expansion into new areas of streaming," Roku CEO Anthony Wood said in a statement. * The Top 15 Stocks to Buy in 2020 If the company is to believed, and there doesn't appear to be any reason not to, Louden's departure boils down to his desire to move back to Seattle; Roku is based in Northern California. Competition Actually HelpsThere's no getting around the fact that Fire TV is a competitive threat to Roku, but the competition in the streaming content market will likely benefit the company as Amazon, Apple (NASDAQ:AAPL), Disney (NYSE:DIS), Netflix (NASDAQ:NFLX) and others fight a costly battle for content supremacy.Siva K. Balasubramanian, Ph.D., associate dean of the Stuart School of Business at the Illinois Institute of Technology, sees the streaming content tussle as a potential catalyst for Roku stock."This competition benefits ROKU. In advertising specifically, ROKU offers the Connected TV ad experience that offers advantages for advertisers in that ads are better targeted, and also audiences are unable to skip or avoid these ads," said Balasubramanian. "Roku's business model is expected to benefit from these strong underlying trends for the foreseeable future."The content wars speak to the growth of streaming itself."Streaming is an increasingly popular way to watch TV, and is expected to grow further over the next 5 years," said Balasubramanian. "Meanwhile, competition among players in the streaming domain has intensified significantly recently, with the entry of Apple and Disney to a field previously dominated by Netflix and Amazon."Balasubramanian said the competition should benefit Roku as "a relatively neutral aggregator of TV shows and movies." Bottom Line: Great ExpectationsRoku stock was the best-performing technology name of 2019, and with accomplishments come expectations, reasonable or not. Wall Street has a tendency to focus on streaming and how many smart TVs the company has sold, leaving robust customer dedication and a booming advertising business as under-appreciated elements of the big picture when it comes to ROKU stock.In other words, paying 15 times this year's sales for ROKU stock isn't a discount, but it isn't an unreasonable price for this company's combination of catalysts and potential either.And for those that don't want to marry Roku, and would prefer casual dating, there's 13.36%, the percentage of the shares that are sold short. That suggests any credible near-term rally could be boosted by short covering.As of this writing, Todd Shriber did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The Top 15 Stocks to Buy in 2020 * The 7 Most Important Companies That Didn't Survive the 2010s * 4 Mega-Tech Stocks Reaching for the Sky The post Risks for Roku Could Be Blessings in Disguise appeared first on InvestorPlace.
The new TiVo (TIVO) Stream 4K is an HDMI dongle designed to compete with streaming devices like Fire TV, Google Chromecast and Roku Streaming Stick.
If you're looking for stocks to buy to double your money in 2020, you might want to look beyond the S&P 500.Don't get me wrong. The S&P 500's total return of 28.9% in 2019 was one of the best performances the index has seen in decades.However, a quick screen shows that only a few S&P 500 stocks doubled over the past year. But, if you broaden the search to include all U.S.-listed stocks with market caps exceeding $2 billion, the number of stocks doubling in value in 2019 jumps dramatically to over 70.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBroken down by sector, healthcare and technology stocks had the best results in 2019 -- with 29 and 38 doubling over the past year, respectively. The remaining seven sectors had between three and eight stocks double in 2019. * 7 Stocks That Are Screaming Buys Right Now Of the more than 70 stocks that doubled year to date, here are seven stocks to buy as of Jan. 2 that I believe will deliver a repeat performance in 2020. Stocks to Buy: Shopify (SHOP)Source: Jirapong Manustrong / Shutterstock.com Shopify (NYSE:SHOP), what I consider to be one of Canada's best tech stocks, gained 187% in 2019.As the e-commerce platform's stock went higher in 2019, the number of stories that appeared recommending shorting SHOP stock increased dramatically. Currently, Shopify has 4.72 million shares short, which is a lot until you consider that it only takes two days to cover based on its average daily volume -- making a short squeeze very difficult to pull off.As I stated in November, as long as Shopify's monthly recurring revenue (MRR) continues to grow by double-digit percentages, it will continue to deserving of a growth-company valuation. MRR grew by 41.4% and 33.8% over the past two years.More importantly, it took Shopify 19 months to go from 600,000 subscribers to 1 million subscribers. At 25% compound annual growth, Shopify ought to hit 2 million subscribers by the end of 2022.Another reason to like Shopify's chances of doubling for a second-consecutive year is that CEO Tobias Lutke doesn't believe in spending all day and night at work."I'm home at 5:30 pm every evening. My job is incredible, but it's also just a job. Family and personal health rank higher in my priority list," Lutke tweeted recently. Roku (ROKU)Source: Fozan Ns / Shutterstock.com If you bought Roku (NASDAQ:ROKU) at the end of 2018, you're sitting pretty early in 2020. The stock rose 337% throughout 2019.While it's doubtful that ROKU stock will deliver a repeat performance in 2020, I think the odds are high that it will generate 100%-plus returns over the next year. I believe it will continue to grow its international business while also improving its advertising platform.In my eyes, Roku was a "Stock of the Year" candidate in 2019 because it continued to grow the number of active accounts and streaming hours from those accounts. In the third quarter, Roku increased the average hours streamed per account by 22% to 318.9.As long as it continues to remain a relatively neutral aggregator of TV shows and movies through the Roku platform and Roku Channel, I don't see anyone taking market share from the company. * 9 Boring Stocks to Buy You Should Never Let Go Of I would suggest that given Roku's volatility, you put aside some cash to buy some more ROKU stock when it experiences a correction in the next year. In September 2019, ROKU lost around 40% of its value in less than a month. StoneCo (STNE)Source: Shutterstock When I think of the name StoneCo (NASDAQ:STNE), for some reason, I think of a paper business. Perhaps it's that whole rock, paper, scissors thing.Anyway, StoneCo isn't a paper company, but a Brazilian payment processing stock that's 4.3% owned by Warren Buffett and Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B).How's that for an endorsement?In 2019, StoneCo's stock gained 116% thanks to double-digit growth in both revenues and profits. In Q3 2019, revenues and adjusted net income increased by 62% and 126% year-over-year, respectively.The company operates in Brazil, where the economy and currency are on the mend. And, digital payments through debit and credit transactions account for just 40% of all transactions in the country -- suggesting that StoneCo's growth trajectory is very healthy.In addition to processing payments, just like Square Capital does, StoneCo loans money to small- and mid-sized customers. In the third quarter, outstanding loans increased by 333% to 13,000.I continue to favor disruptive companies. Especially in emerging markets such as Brazil, where the penetration is so much lower than in North America and Europe. Universal Display (OLED)Source: Daniel Pieterson / Shutterstock.com You can't keep a good stock down.In November 2018, I recommended investors buy Universal Display (NASDAQ:OLED) stock on the dip. OLED had lost almost 42% of its value through the first 10 months of 2018. Since then, it's up 97%, with all of the gains coming in 2019.In 2013, I recommended buying Universal Display as one of five stocks to buy for the next 20 years. My rationale was simple: OLED stands for organic light-emitting diode. It had more than 3,000 patents related to display technologies for flat-panel TVs, smartphones, etc. It licenses its technology to manufacturers of these products.At the time, digital displays were transitioning from LED to OLED; Universal Display was the industry leader. Therefore, it was a no-brainer. As companies such as Apple (NASDAQ:AAPL) moved to make their own displays, investors started to get nervous about growth. * 7 Industrial Stocks to Buy for a Strong New Year However, if the company's latest quarterly report is any indication, OLED's got plenty of gas left in the tank in 2020 and beyond. Generac Holdings (GNRC)Source: Lissandra Melo / Shutterstock.com In 2019, Generac Holdings (NYSE:GNC) delivered a total return of 102%, with almost one-third of the gains coming in the final three months of the year.The tail end of Hurricane Dorian hit Halifax, Nova Scotia, where I live, in September -- knocking out power for most of the province. Ever since then, I've paid close attention to Generac's TV advertisements promoting its residential generators.Although you could hardly mistake Generac for Roku or Shopify, it still managed to deliver record-breaking net sales and adjusted EBITDA in the third quarter. Residential sales jumped 7.4% on higher demand for the company's residential units.As North America's electrical grid ages, the number of power outages increases. Clearly, I'm not the only person noticing Generac's products on TV. And, as a result, Generac's raised its sales growth for the entire fiscal year.Generac doesn't pay a dividend. However, if its residential unit in the U.S. continues to grow in the high single digits, there will be more than enough capital appreciation to keep shareholders happy. Yeti Holdings (YETI)Source: David Tonelson / Shutterstock.com Yeti Holdings (NYSE:YETI) is your typical rags to riches entrepreneurial story.Brothers Roy and Ryan Seiders founded the company in 2006 in Austin, Texas. The two outdoorsmen were frustrated with the quality of hard coolers on the market. By utilizing advanced manufacturing techniques and forward-thinking design, the duo came up with the Yeti cooler, an indestructible product that put other coolers to shame. From there, the brothers moved on to other outdoor products, and the rest, as they say, is history.In 2012, the brothers agreed to sell 70% of the company to New York City-based private equity firm, Cortec, for $67 million. When Yeti went public in October 2018 at $18 per share, some stories circulated at the time that suggested Cortec could reap as much as $3.3 billion from the IPO.I've looked all through its IPO documents and fail to see that much largesse.Nonetheless, all of the stakeholders, including the Seiders brothers, have benefitted greatly over the past seven years. And those that bought in IPO shares and are still holding gained 134% in 2019 alone.In October, I recommended YETI stock because the company's direct-to-consumer business is growing by leaps and bounds. * 5 Stocks to Consider for the New Year Private equity firms often are bad news for consumer brands. In the case of Cortec, that wasn't the case. In 2020, expect Yeti to maintain its growth trajectory. Cannae Holdings (CNNE)Source: Shutterstock Cannae Holdings (NYSE:CNNE) generated a 2019 return of 117%.Who is Cannae Holdings?It is the not-so-new name for Fidelity National Financial Ventures, the non-real estate investment vehicle of Fidelity National Financial (NYSE:FNF) -- one of the biggest providers of title insurance in the U.S.What does Cannae own today?Its most significant investment is in Ceridian HCM Holdings (NYSE:CDAY), a human capital management company run by Canadian CEO David Ossip. I first recommended CDAY stock in May 2018, calling it "one of the best up-an-coming stocks to own on the NYSE." CDAY is up 105% in the 20 months since. Cannae recently sold 9 million shares at nearly $57 each. It still owns 28.7 million shares or 20% of the company.In February 2019, in conjunction with other investors, Cannae acquired Dun & Bradstreet for $6.5 billion, including the assumption of $1.1 billion in debt. In the take-private acquisition, Cannae invested $506 million in return for 24.5% of D&B's outstanding equity. In addition to these two extensive holdings, it also has a few smaller investments -- including a controlling stake in the O'Charley's, Village Inn and Ninety Nine Restaurants & Pubs.Chairman Bill Foley II is known to be one of the better capital allocators in America.At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks to Buy to Kick Off the New Year * 7 Buyout Targets to Watch For 2020 * 9 Boring Stocks to Buy You Should Never Let Go Of The post 7 Stocks to Buy That Could Double for a Second-Consecutive Year appeared first on InvestorPlace.
Many investors, including Paul Tudor Jones or Stan Druckenmiller, have been saying before 2018's Q4 market crash that the stock market is overvalued due to a low interest rate environment that leads to companies swapping their equity for debt and focusing mostly on short-term performance such as beating the quarterly earnings estimates. In the first […]
(AMZN) said Monday its Fire TV streaming video platform has passed 40 million active users. In May 2019, Amazon (AMZN) had announced 34 million users. Amazon made the latest announcement at the CES trade show in Las Vegas.
(CES) – Roku, Inc. (Nasdaq: ROKU) today announced Roku TV™ Ready, a new program that allows consumer electronics companies to partner with Roku to help their products work seamlessly with Roku TV for an incredible home entertainment experience. The first partners under the program are TCL North America and Sound United, parent company to Denon, Polk Audio, Marantz, Definitive Technology and Classé, which will feature Roku TV Ready products for select brands later this year.
Roku announced 15 TV brands will launch Roku TV models across Canada, Mexico, US and UK in 2020. New in Mexico: InFocus, Polaroid & Walmart's ATVIO