2024-05-31 14:46:21 ET
Summary
- Roku's stock price has dropped nearly 40% this year despite positive Q1 earnings results that featured an acceleration in revenue.
- The company reported strong sales of its latest Roku Pro models.
- At the same time, it's also expanding its streaming distribution, having signed up many customers for Peacock during the Super Bowl.
- Streaming sign-ups also create a strong revenue opportunity for Roku Pay.
- Roku is trading at a cheap ~14.5x TTM FCF multiple.
In the volatile stock market of 2024, the winners have won big while the losers have shifted deeper and deeper into the penalty box. Oftentimes, however, stock price performance has been completely uncorrelated with underlying fundamental performance, which I believe to be the case with Roku ( ROKU )....
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For further details see:
Roku: Buy While The Market Is Looking The Other Way