Roku: Executing Well In A Tough Environment


  • Shares of Roku have rebounded more than 30% year to date, but the stock remains down more than 65% over the past year.
  • The company grew platform revenue at a double-digit pace in a market that saw sharp declines in traditional ad spending.
  • New Roku Smart Home products, including security cameras and smart lights, position Roku to eventually pivot to being a full-on smart home company.
  • The company is cash-rich, with more than $2 billion in cash against very minimal debt.

Roku To Layoff 200 Employees As Tech Downsizing Continues

Justin Sullivan

Even though the year to date has seen sharp recoveries in many tech stocks, many iconic brands still remain deeply underwater and far below their all-time highs. Investor sentiment has not been very forgiving to growth stocks, where even the

Data by YCharts

Netflix subscriber stats

Netflix subscriber stats (Netflix Q4 shareholder letter)

Roku Q3 highlights

Roku Q3 highlights (Roku Q3 shareholder letter)

Ad spend

Ad spend (Roku Q3 shareholder letter)

Roku Smart Home

Roku Smart Home (Roku Q3 shareholder letter)

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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