Roku: Just Not Worth The Risk


  • Roku has had a tough year in 2022 due to a softening digital ad market.
  • If some of Roku’s biggest ad-sharing revenue opportunities, from companies like YouTube and Netflix, are practically paying Roku nothing, then its potential is limited.
  • Even though many anticipated a decline in streaming in 2022 as the world began to recover from the pandemic, Roku still found a way to expand.
  • The valuation is still not tempting enough.
  • I give the stock a SELL rating.

Roku Shares Slide 25 Percent After Q4 Revenue Drop

Justin Sullivan

Investment Thesis

Over the past ten years, Internet-connected television (CTV) has expanded to become one of the most popular consumer categories. Many people all across the world are choosing CTV options over traditional TV viewing as a result

Data by YCharts

Roku Valuation

Seeking Alpha

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.

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