|Bid||0.00 x 3000|
|Ask||0.00 x 1300|
|Day's Range||39.32 - 41.28|
|52 Week Range||26.30 - 77.57|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Earnings Date||Feb 19, 2019 - Feb 25, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||58.54|
[Editor's Note: This article was originally published in September 2018. It has been updated to reflect changes in the market.] Amazon (NASDAQ:AMZN) has been one of the more impressive stocks of the past 25 years. In fact, AMZN now has returned well over 100,000% from its initial public offering (IPO) price of $18 ($1.50 adjusted for the company's subsequent stock splits). A large part of the returns has come from two factors. First, Amazon has vastly expanded its reach. What originally was just an online bookseller now has its hands in everything from cloud computing to online media to groceries. And its shadow is even larger … Amazon's buyout of Whole Foods rattled the retail market. Similarly, its entry into healthcare by buying PillPack -- as well as its healthcare partnership with Berkshire Hathaway (NYSE:BRK.B) and JPMorgan (NYSE:JPM) -- sent ripples through the healthcare sector. In response, Microsoft (NASDAQ:MSFT) teamed up with Kroger (NYSE:KR) to "build the grocery store of the future." And this week, MSFT and Walgreens (NASDAQ:WBA) announced a partnership to fend off Amazon. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Secondly, as a stock, AMZN has managed the feat of keeping a growth stock valuation for over two decades. I've long argued that investors can't focus solely on the company's high price-earnings (P/E) ratio to value Amazon stock. But however an investor might view the current multiple, the market has assigned a substantial premium to AMZN stock for over 20 years now, and there's no sign of that ending any time soon. * Top 10 Global Stock Ideas for 2019 From RBC Capital It's an impressive combination, and one that's likely impossible, or close, to duplicate. But these five stocks have the potential to at least replicate parts of the Amazon formula. All five have years, if not decades, of growth ahead. New market opportunities abound. And while I'm not predicting that any will rise 100,000% -- or 1,000% -- these five stocks do have the potential for impressive long-term gains. ### Stocks That Could Be the Next Amazon Stock: Square (SQ) Source: Chris Harrison via Flickr (Modified) Admittedly, I personally am not the biggest fan of Square (NYSE:SQ) stock. I like Square as a company, but I continue to question just how much growth is priced into SQ already. Of course, skeptics like myself have done little to dent the steady rise in AMZN stock. And valuation aside, there's a clear case for Square to follow an Amazon-like expansion of its business. Back in January, Instinet analyst Dan Dolev compared Square to Amazon and Alphabet Inc (NASDAQ:GOOGL, NASDAQ:GOOG), citing its ability to expand from its current payment-processing base: "In 10 years, Square is likely to be a very different company helped by accelerating share gains from payment peers and relentless disruption of services like payroll and human resources." Just as Amazon used books to expand into e-commerce, and then e-commerce to expand into other areas, Square can do the same with its payment business. The small business space is ripe for disruption, as Dolev points out. Integrating payments into payroll, HR, and other offerings would dramatically expand Square's addressable market - and lead to a potential decade or more of exceptional growth. Again, I do question whether that growth is priced in, with SQ trading at well over 90x forward earnings. But if -- again, like AMZN -- Square stock can combine a high multiple with consistent, impressive, expansion, it has the path to create substantial value for shareholders over the next five to 10 years. ### Stocks That Could Be the Next Amazon Stock: JD.com (JD) Source: Daniel Cukier via Flickr In China, JD.com (NASDAQ:JD) is the company closest to following Amazon's model. While rival Alibaba (NYSE:BABA) gets most of the attention, it's JD.com that truly should be called the "Amazon of China." Like Amazon (and unlike Alibaba), JD.com holds inventory and is investing in a cutting-edge supply chain. It, too, is expanding into brick-and-mortar grocery, like Amazon did with its acquisition of Whole Foods Market. A partnership with Walmart (NYSE:WMT) should further help its off-line ambitions. JD.com is even cautiously entering the finance industry. At the moment, however, JD stock is going in the exact opposite direction of AMZN. The stock has plunged of late. An arrest of the company's CEO has been a recent driver. So have mixed earnings reports and a Chinese bear market. Clearly, there are myriad risks here, even near the lows. But AMZN saw a few pullbacks over the years as well. And while JD may never rise to the scale of Amazon -- or even out-compete Alibaba -- at its current valuation it doesn't have to. JD now trades at near-40x forward EPS. That's despite a series of investments depressing near-term profitability -- and building out long-term capabilities -- and 40% revenue growth in 2017, with expectations for a nearly 30% increase in 2018. * 7 Media Stocks That Make Prime M&A Targets If investor confidence returns, JD has a path to enormous upside. And even with the near-term jitters facing the stock, the long-term strategy still seems intact, and likely the closest in the market to that of Amazon. ### Stocks That Could Be the Next Amazon Stock: Shopify (SHOP) Source: Shopify via Flickr E-commerce provider Shopify (NYSE:SHOP) probably doesn't have quite the same opportunity for expansion as Square. And it, too, has a hefty valuation, along with a continuing bear raid from short-seller Citron Research. But I've remained bullish on the SHOP story, even though valuation is a question mark, even after a recent pullback. Shopify is dominant in its market of offering turnkey e-commerce services to small businesses. That's exactly where consumer preferences are headed: small and unique over large and bland. And because of offerings like Shopify (and Amazon Web Services), those small to mid-sized businesses can compete with the giants. Meanwhile, Shopify does have the potential to expand its reach. Just 29% of revenue comes from overseas, a proportion that should grow over time. It's moving toward capturing larger customers as well through its "Plus" program, picking up Ford (NYSE:F) as one key client. The development of an ecosystem for suppliers and the addition of new technologies (like virtual reality) give Shopify the ability to offer more value to customers … and to take more revenue for itself. Like SQ, SHOP is dearly priced. But both companies have an opportunity to grow into their valuations. And considering long runways for Shopify's adjacent markets, it should keep a high multiple for some time to come. As a stock, if not quite as a company, SHOP has a real chance to follow the AMZN formula for long-term upside. ### Stocks That Could Be the Next Amazon Stock: Roku (ROKU) Source: Shutterstock Roku (NASDAQ:ROKU) might have the best chance of any company in the U.S. market to follow Amazon's strategic playbook. The ROKU stock price is a concern, given that the stock more than doubled in April and it has continued to climb higher, even amid the selloff in tech stocks in October. At 10x revenue, ROKU isn't close to cheap. But -- perhaps even more so than Square -- Roku now isn't what Roku is going to be in ten years. The hardware business is a loss leader, but one that allows Roku to serve as the gateway to content for millions of customers. As the company pointed out after recent earnings, it's already the third-largest distributor of content in the U.S. The Roku Channel is seeing increasing viewership. It's already up to more than 27 million viewers! The company offers pinpoint targeting of advertisements -- without the messy data problems afflicting Facebook (NASDAQ:FB). Roku is becoming increasingly embedded in TVs, though a deal between Amazon and Best Buy (NYSE:BBY) raised some fears about those software efforts going forward. It has a plan to roll out home entertainment offerings like speakers and soundbars, creating a long-sought integrated experience. It could even, as it grows, look to develop or acquire content itself, positioning Roku not as just a conduit to Netflix (NASDAQ:NFLX) but a rival. * 7 Video Game Stocks on Steep Discount The bull case for Roku stock is that its players are like Amazon's books -- not a great business on their own, but a way to garner customers and get a foot in the door of the exceedingly valuable media business. What Roku does now that it has entered will determine the fate of ROKU stock. But the amount of options and still a somewhat modest market cap (under $5 billion) mean that betting on its strategy could be a lucrative play. ### Stocks That Could Be the Next Amazon Stock: Workday (WDAY) Source: Workday Workday (NASDAQ:WDAY) is starting to look like the enterprise software version of Amazon. Its core HR product has driven huge gains in WDAY stock, which now has a $36 billion market cap. But Workday is just getting started. The company previously announced that it would buy Adaptive Insights to build out its financial planning capabilities. It has already rolled out analytics and PaaS (platform-as-a-service) offerings that add billions to its addressable market. Here, too, valuation looks stretched, to say the least, but the story here still looks attractive. Workday is never going to be as famous as Amazon, or as large. But if its strategy works, it will be as important to, and as embedded with, its corporate customers as Amazon is with its consumers. As of this writing, Vince Martin has no positions in any securities mentioned. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Companies That Could Post Decelerating Profits * 10 A-Rated Stocks the Smart Money Is Piling Into * Mizuho: 7 Long-Term Value Stocks to Buy Now Compare Brokers The post 5 Stocks That Could Be the Next Amazon appeared first on InvestorPlace.
Netflix (NFLX) saw its stock price climb 6% Tuesday after the streaming TV powerhouse raised its prices on all of its streaming plans for the first time in over a year just a few days before it reports its Q4 financial results.
Jim Paulsen, the widely respected chief investment strategist of Leuthold Group, forecasts a sharp market rebound during all of 2019, per Business Insider. Outside of the pricey FAANGs, the investor views less-popular tech stocks as well positioned to outperform. "Small-cap tech stocks have been matching the performance of their larger brethren, many without facing the thorny and unresolved issues which currently challenge the FAANGs," says Paulsen.
On this episode of the Full-Court Finance podcast, Associate Stock Strategist Ben Rains dives into some of the latest streaming TV news from Roku, Hulu, and others before he breaks down some of the biggest streaming sports storylines to watch in 2019 and beyond.
After losing around half of its entire market capitalization since peaking in mid-2017 at $77.57, Roku Inc (NASDAQ: ROKU ) should not be bought by investors, according to Citi. The Analyst Citi's Mark ...
Deckers, United States Steel, Netflix and Roku highlighted as Zacks Bull and Bear of the Day
TV broadcasters continue to face challenges from viewers increasingly turning away from traditiona broadcasting and pay-tv services, but new opportunities continue to be seen, say executives at Disney’s ABC News and Viacom.
The world's biggest consumer technology trade show, CES 2019, ended Friday with attendees coming away talking about 5G wireless, 8K television, artificial intelligence and other hot areas.
Despite NFLX's continued post-Christmas Eve climb, Netflix stock rests roughly 20% below its highs, which means now might be the time to buy NFLX on the dip before a possible 2019 comeback.
It has been somewhat like "Must See TV" in Roku (NASDAQ:ROKU) stock and Netflix (NASDAQ:NFLX) of late. But to prevent watching a horror movie in your portfolio unfold, our suggestion is to wait for a programming change to a less exciting, but important broadcast to appear on the price charts. After this, buy ROKU stock and NFLX stock. Let me explain. I'm guessing you've probably enjoyed your share of NBC's "Must See TV." Not to date myself, but my favorite era was when the slogan was backed up with Friends, Seinfeld and ER. That's right, back when unreliable VCR's, once-a-week broadcasting time slots or renting from your neighborhood Blockbuster to catch episodes of your favorite shows were ubiquitous with watching television. Thank you Roku and Netflix! InvestorPlace - Stock Market News, Stock Advice & Trading Tips Today, how we watch television and a marketplace dominated by streaming stocks Netflix and Roku has been more than a welcome change. With the technological access provided by ROKU and NFLX, people can watch virtually any type of television programming 24/7 and from nearly anywhere they chose. But before you jump off that couch to buy into these two streaming stocks, realize investing in a secular growth story like ROKU stock and NFLX can provide both crowd-pleasing, action packed performances, as well as scare the you-know-what out of their paid audiences with gut-wrenching price action. * 10 Key Emerging-Market Stocks to Buy for Contrarian Investors The good news is that following large corrections and sharp, market-leading technical rebuttals where the role of protagonist has switched from bear to bull, it's time to put ROKU stock and NFLX stock in your queue for purchase in the not-too-distant future. ### Pairs Stock Strategy Long: ROKU Stock Despite its dominance in the over-the-top streaming television market, Roku's puny capitalization of around $4.4 billion and opportunistic position to grow much larger in the years to come comes with a price … namely, over-the-top volatility in ROKU stock. During this past quarter's market correction this persona manifested itself in shares of Roku moving from a tenacious position of relative strength and setting all-time-highs and straight into an equally bone-chilling deep retracement that likely scared the bejesus out of anyone other than the most zealous ROKU stock bull. More recently, Roku's horrifying correction, which "narrowly" broke key lateral and 76% supports, performed a volatile about-face, much to the relief of those devoted ROKU stock holders. Now, with shares carving out a simple pullback pattern that's currently three days in duration, it's almost time to buy shares. For bullish investors agreeable with ROKU's big picture prospects off and on the price chart, I'd suggest waiting for the current three-day simple pullback pattern to confirm a low is in place. That should happen sometime in the next day if a daily chart entry is to appear. If today's rarer relative quiet persists, the pullback may grow deeper and establish confirmation on the weekly chart. Either way, buying on weakness and setting either a pattern stop-loss or a money stop below $30 makes sense given the market's own aggressive rally over the past two weeks. And it's one likely due for a modest encore performance from a bearish protagonist. ### Pairs Stock Strategy Long No. 2: NFLX Stock As our other streaming stock, Netflix's correction of 45% from its June all-time-high, seems almost quaint compared to ROKU stock. But don't let the veteran's performance fool you. It's still highly volatile. Despite its hefty capitalization of around $141 billion, NFLX stock's 45% correction still managed to come in at roughly twice the NASDAQ's punishing drop. Sure, the horror show in Netflix shares took a couple more months to make bulls run for the exits. But that's a much harder-to-stomach decline than the typical 30% most growth stocks like NFLX endure during healthier market climates. * 7 Stocks to Buy That Are Ready for Takeoff Furthermore, with its triple-digit price tag, the still-high volatility can feel even more nauseating in bearish environments, as well as like winning an Oscar when things go right like they have lately. But don't think for a second that means the coast is clear for buying NFLX stock today. Currently, Netflix has staged an equally impressive, but much swifter overbought 45% price reversal into zone resistance. This fragile position is punctuated by the 200-day simple moving average, 50% - 62% retracement levels and a downtrend line. Bearing that in mind, NFLX stock is in need of a less exciting, but important program change similar to what's going on in ROKU stock before investors consider buying shares. In fact, given the staunch technical barrier, a "best short-term bearish performance" by a market large cap could be forthcoming before bulls take the stage again. 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 * 10 Stocks You Can Set and Forget (Even In This Market) * 10 Virtual Assistants for the Future of Smart Homes * 7 5G Stocks to Buy as the Race for Spectrum Tightens Compare Brokers The post How to Play Netflix and Roku Stock for Massive Gains appeared first on InvestorPlace.
Ryan McQueeney and Maddy Johnson take on this week's top market headlines, including the renewed momentum of Netflix, Roku, and Chipotle as well as a batch of mixed holiday sales results from the retail sector.
Ryan McQueeney and Maddy Johnson take on this week's top market headlines, including the renewed momentum of Netflix, Roku, and Chipotle as well as a batch of mixed holiday sales results from the retail sector.
Four young tech stocks — Twilio Inc. (TWLO), Etsy Inc. (ETSY), Square Inc. (SQ) and Roku Inc. (ROKU) — have dramatically outperformed the big tech stocks this year, up as much as 36% versus the S&P 500’s near 3% gain.
Media takeovers have the potential to lift a broad range of stocks in 2019, with speculated deals including CBS Corp.'s (CBS) purchase of Viacom Inc. (VIA), a Walmart Inc. (WMT) buyout of Roku Inc.
Hulu announced it added 8 million live TV and on-demand subscribers last year, its largest annual increase. The growth put Hulu over the 25 million subscriber mark for the first time. Hulu is a joint venture with Walt Disney Co. (NYSE: DIS),Twenty-First Century Fox Inc (NASDAQ: FOXA) and Comcast Corporation (NASDAQ: CMCSA) each holding a 30-percent stake.
Streaming device maker Roku (NASDAQ:ROKU) has been a publicly traded company for just over a year. During that year, there has been no shortage of drama or wild swings in Roku stock. The stock has had multiple huge rallies. It has also has had multiple huge drops. This isn't anything unusual for a hyper-growth, freshly public company. Whenever the numbers and surrounding environment are good, the sentiment gets really good because of Roku's massive long term potential in the secular growth streaming market. But, whenever the numbers and surrounding environment aren't good, the sentiment gets really bad because of the stock's nosebleed valuation. High risk. High reward. Ultimately, though, these big rallies and drops are nothing more than noise for true growth stocks with powerful underlying secular growth narratives. Just look at early stage Amazon (NASDAQ:AMZN) or Netflix (NASDAQ:NFLX). Back when those companies were Roku's size, their stocks were subject to multiple huge drops. Today, those drops are hardly noticeable in a long term chart because both Amazon and Netflix have grown so much since then. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks You Can Set and Forget (Even In This Market) The same will ultimately be true for Roku stock. Roku is a true growth stock with a powerful underlying secular growth narrative. In late 2018, while ROKU dropped more than 50%, the market forgot that. But, it won't forget that forever. As such, while the broader market suffers from short term memory loss, this is an opportunity for investors to pick up a growth stock at a value stock price. ### Roku Is a True Growth Stock ROKU is a pure play on the streaming mega trend. In the big picture, entertainment globally is shifting from linear consumption to internet consumption. As this shift plays out, the streaming TV world will start to look more and more like the linear TV world. That means multiple streaming services, and a centralized aggregation system to help curate and access those multiple services. Roku is that centralized aggregation system. It is essentially the cable box for the streaming world. You can access and view any streaming service from a Roku device. Unarguably, as the global streaming market doubles over the next several, global demand for a streaming aggregation system will rise. Right now, Roku is the leader in this market with 40% share in the streaming device market and 25% share in the smart TV market. So long as the company can defend its market leadership position, ROKU will remain a true growth stock with massive long-term potential in the burgeoning streaming market. ### Roku Will Defend Its Leadership Position The knocks against Roku are that its devices will be unnecessary in the world of smart TVs, and/or that Roku will ultimately be crushed by bigger competitors like Amazon and Apple (NASDAQ:AAPL). These arguments don't hold water when analyzed closely. Not everyone can afford a smart TV. In the future, once smart TV prices come way down, they will be affordable for everyone. But, we are still a long ways off from that happening. Until then, simple and cheap streaming devices will have high demand. Also, when we do pivot to a complete smart TV world, Roku will dominate. The Roku system is already built into 25% of smart TVs, giving the platform a head-and-shoulders leader in the smart TV market. Meanwhile, competitors don't really measure up to Roku in the streaming market. Amazon has a streaming device. Apple and Google (NASDAQ:GOOG) have streaming devices, too. But, those streaming devices aren't content agnostic (I can't stream Amazon Video through a Google Chromecast). This makes non-Roku streaming devices inconvenient for multi-SVOD subscription households, and most households fall into that category (in a decade, almost every household will fall into that category). Perhaps this is why Roku has jumped to an early lead in the streaming device market, with 40% market share. Enhanced convenience is also why Roku will be able to defend its market leadership position into perpetuity. ### The Market Forgot About Roku's Growth In late 2018, the market seemingly forgot about the growth narrative underlying Roku stock. This is a hyper-growth tech company with a sub-$20 billion market cap attacking a $100 billion-plus addressable market. Revenue growth is running around the 40% range. Engagement growth metrics are running north 40%. Gross margins in the critical Platform business are north of 70%. Other small- to mid-cap companies with similar hyper-growth and big gross margin characteristics and supported by secular mega-trends include Shopify (NYSE:SHOP), Trade Desk (NASDAQ:TTD), Chegg (NASDAQ:CHGG), and Etsy (NASDAQ:ETSY). All those stocks trade at double-digit trailing sales multiples. Moreover, Netflix (perhaps the best comp for Roku due to its streaming overlap) trades at 10X trailing sales. Back in September 2018, Roku had a double-digit trailing sales multiple. Today, Roku stock trades at just over 6X trailing sales. Yet, between now and then, Roku has reported a double-beat-and-raise third quarter report and announced preliminary fourth quarter engagement numbers which easily topped estimates. In other words, Roku hasn't lost its growth touch. The market simply forgot this was a growth stock. ### Bottom Line on ROKU Stock The market's short term memory loss regarding Roku stock won't last forever. Eventually, the market will realize this is a true growth stock, and that realization will send Roku stock flying. This will happen quickly (see the 25% rally in Roku stock following the strong Q4 update), so it's best to get on the long side while the valuation still remains attractive. As of this writing, Luke Lango was long ROKU, AMZN, NFLX, AAPL, GOOG, SHOP, TTD, and CHGG. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks to Buy for Winning the Online Battle * The 7 Best Stocks in the Entrepreneur Index * 7 5G Stocks to Buy as the Race for Spectrum Tightens Compare Brokers The post Jump on Roku Stock Before the Market Remembers Its Potential appeared first on InvestorPlace.