Roku: Not Worth The Risk Now


  • Roku, Inc.’s stock had a post-earnings surge, with investors betting on the streaming platform’s early-stage turnaround and its leadership position in connected TV.
  • Despite the worst being behind it, Roku may not return to profitability until FY24, leaving investors to wonder if it’s worth the risk to wait?
  • With an FY24 EBITDA multiple of nearly 44x hinging on its ability to return to profitability, Roku must prove that its growth justifies the premium valuation.

Roku To Layoff 200 Employees As Tech Downsizing Continues

Justin Sullivan

Roku, Inc. (NASDAQ:ROKU) stunned the bears further as it held its post-earnings gains. With a short interest as a percentage of float of below 9%, there are still some stubborn short-sellers that remain.

The company called out

ROKU price chart (weekly)

ROKU price chart (weekly) (TradingView)

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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