Roku: Embrace Q4 Volatility

Summary:

  • Roku’s Q4 sales targets may be difficult to achieve due to writer and actor strikes reducing content for the video streaming market.
  • Despite potential Q4 weakness, investors should focus on Roku’s active accounts and streaming hours growth for long-term value.
  • ROKU stock is cheap at only 2x ’24 sales targets with a bonus cash balance of $1.8 billion.

Roku To Layoff 200 Employees As Tech Downsizing Continues

Justin Sullivan

Only at the start of September, Roku (NASDAQ:ROKU) boosted Q3 sales targets in a sign business was far better than expected. Now, analysts forecast the video streaming service will struggle to hit targets due to writer and


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in ROKU over 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.

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