ROKU

Roku Inc - Ordinary Shares - Class A

TMT


Presented:12/13/2023
Price:$101.68
Cap:$14.49B
Current Price:$78.93
Cap:$11.42B

Presented

Date12/13/2023
Price$101.68
Market Cap$14.49B
Ent Value$8.63B
P/E RatioN/A
Book Value$16.19
Div Yield0%
Shares O/S142.50M
Ave Daily Vol6,853,420
Short Int10.67%

Current

Price$78.93
Market Cap$11.42B
Roku, Inc. engages in the provision of a streaming platform for television. It operates through the Platform and Devices segments. The Platform segment includes digital advertising and related services including the demand-side platform and content distribution services such as subscription and transaction revenue shares, media and entertainment promotional spending, the sale of premium subscriptions, and the sale of branded channel buttons on remote controls. The Devices segment is involved in the sale of streaming players, audio products, smart home products, and accessories that are sold through retailers and distributors, as well as directly to customers through the company’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 (AMZN), Alphabet Inc (GOOG), Roku Inc (ROKU), Comcast (CMSA), 

Highlights

The presenter is short shares of Roku (ROKU) following an 80% surge in the stock since Q3 earnings on the belief that CPMs for the company and CTV advertising space are too high ahead of an influx in inventory next year. While investors are excited about ROKU opening inventory to other DSPs, a flood of inventory from AMZN and other streaming platforms should impact CPM pricing here leading to lower revenues and potential market share loss for a stock trading at 28x 2025 EBITDA.

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Idea Discussion

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