Roku: Back On The Cathie Wood Path


  • Roku, Inc. reported Q4 2022 numbers that beat analyst estimates while guiding better than expected for Q1’23.
  • The video streaming platform reported solid active accounts and streaming hours growth, supporting the ARK Invest base case.
  • Roku stock is cheap at $70 at 2x forward sales, but Roku has to hit the new targets of returning to adjusted EBITDA positive in 2024.

Roku Shares Slide 25 Percent After Q4 Revenue Drop

Justin Sullivan

As previously pointed out, the market got far too negative on the story being developed by Roku, Inc. (NASDAQ:ROKU). The macro environment in the digital advertising market was clouding the long-term growth story presented by

Roku Active accounts

Source: Roku Q4’22 presentation


Source: Roku Q4’22 presentation

Roku Active accounts forecast

Source: ARK Invest

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock, you should do your own research and reach your own conclusion or consult a financial advisor. Investing includes risks, including loss of principal.

If you’d like to learn more about how to best position yourself in under valued stocks mispriced by the market heading into a 2023 Fed pause, consider joining Out Fox The Street

The service offers model portfolios, daily updates, trade alerts and real-time chat. Sign up now for a risk-free, 2-week trial to start finding the next stock with the potential to generate excessive returns in the next few years without taking on the out sized risk of high flying stocks. 

Leave a Reply

Your email address will not be published. Required fields are marked *