Roku: Better To Avoid This Pain Train

Summary:

  • Roku investors have failed to sustain recent earnings optimism as sellers returned to haunt ROKU’s holders.
  • Roku’s market leadership has not translated into sustainable economics. With the streaming competition heating up, Roku will find it increasingly tougher to remain profitable.
  • ROKU is also at a critical juncture. If buyers fail to turn up and support the current levels, investors will likely need to be prepared for more pain.

Roku To Layoff 200 Employees As Tech Downsizing Continues

Justin Sullivan

Roku, Inc. (NASDAQ:ROKU) investors continue to endure a steep slide in ROKU since its early April highs, as the optimism over its recovery fizzled out. Dip buyers returned in early May after Roku posted pretty

Netflix and Roku adjusted EBITDA margins consensus estimates

Netflix and Roku adjusted

The Trade Desk and Roku revenue growth consensus estimates

The Trade Desk and Roku revenue growth consensus estimates (TIKR)

ROKU price chart (weekly)

ROKU price chart (weekly) (TradingView)


Analyst’s Disclosure: I/we have a beneficial long position in the shares of ROKU either through stock ownership, options, or other derivatives. 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.

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