2024-02-16 07:51:23 ET
Summary
- Roku's shares tumbled 15% after reporting better-than-expected Q4 results, but the market appears to overreact.
- The streaming firm achieved full-year positive EBITDA for the first time ever and one year ahead of the original timeline.
- Roku's key metrics, such as active accounts and streaming hours, showed healthy growth, but average revenue per user declined.
- The outlook for Q1'24 is very strong and came in ahead of consensus expectations.
- Shares have revaluation potential after the drop and I am planning on buying aggressively today.
Shares of Roku (ROKU) tumbled 15% in extended trading after the streaming platform reported better than expected results for the fourth-quarter on Thursday. Although Roku reported a Y/Y drop in its key metric average revenue per user, I believe the market is overreacting to the earnings report: Roku achieved positive adjusted EBITDA for the first time in FY 2023 (one year ahead of the projected timeline), guided for sustained revenue momentum in Q1'24 and is expanding its user base rapidly. While there are headwinds and risks, I believe the 15% drop in pricing is exaggerated and investors have a unique opportunity to load up the truck here!...
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Roku Q4: I Am Loading Up The Truck (Rating Upgrade)