2024-03-19 11:30:44 ET
Summary
- Roku stock has fallen 30% this year despite a strong Q4 earnings print.
- The company continues to enjoy double-digit growth in users, streaming hours, and platform revenue, while profitability has surged above breakeven.
- Management continues to cite more and more ad spend shifting away from linear TV and toward streaming.
- The company's investments into content plus its overseas expansion plans should continue to serve as key growth catalysts for the company going forward.
- Roku also has more than $2 billion in net cash, a substantial chunk of its ~$9 billion market cap.
Understandably, investors have demanded sheer perfection out of earnings season this quarter. With stock markets so high, only the best performers have been allowed to continue rallying. In some cases, however, post-earnings negative reactions have created buying opportunities in stocks that were otherwise expensive, creating perfect contrarian plays in a frothy environment....
Read the full article on Seeking Alpha
For further details see:
Roku: It's A Great Time To Buy This Dip