ROKU

Roku Inc - Ordinary Shares - Class A

TMT


Presented:05/27/2022
Price:$96.47
Cap:$13.19B
Current Price:$78.93
Cap:$11.42B

Presented

Date05/27/2022
Price$96.47
Market Cap$13.19B
Ent Value$15.32B
P/E Ratio99.01x
Book Value$20.69
Div Yield0%
Shares O/S136.73M
Ave Daily Vol6,461,974
Short Int7.69%

Current

Price$78.93
Market Cap$11.42B
Roku, Inc. engages in the provision of a streaming platform for television. It operates through the following business segments: Platform and Player. The Platform segment includes digital advertising and related services including the OneView ad platform, content distribution, and licensing arrangements with service operators and TV brands. The Player segment includes the sale of streaming players and audio products. The majority of streaming players, audio products and Roku TV models are sold through traditional brick and mortar retailers, such as Best Buy, Target, and Walmart, including their online sales platforms, and online retailers such as Amazon, and to a lesser extent, Roku’s website. The company was founded by Anthony J. Wood in October 2002 and is headquartered in San Jose, CA.

Publicly traded companies mentioned herein: Amazon.com Inc (AMZN), Charter Communications Inc (CHTR), Comcast Corp (CMCSA), Netflix Inc (NFLX), Roku Inc (ROKU), Vizio Holding Corp (VZIO), Walmart Inc (WMT), Walt Disney Co/The (DIS), Warner Bros Discovery Inc (WBD)

Highlights 

The presenter is short shares of Roku Inc (ROKU), a streaming and TV operating systems company that faces both cyclical and structural pressures in today’s market. Despite dominating the broader operating system market for smart televisions over the last five years, it is at risk of being disintermediated by the likes of Amazon and Xfinity, as well as television OEMs that are launching hardware with preloaded operating systems. As ROKU cedes share from its non-TV hardware business and generates lower gross margins off of a detrimental mix shift, the stock should experience downward pressure.

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