Roku stock: buy or sell?
Updated on:
December 6th, 2019
3
Roku, Inc. primarily operates a TV streaming platform. Its platform allows users to discover and access a range of movies and TV episodes, as well as live sports, music, news, and others.
Should I buy Roku stock?
You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.None of our preferred buy setups matches with Roku stock situation right now, therefore this is not a suitable entry point.
| Buy setup | Elegible |
|---|---|
| New all-time high | No |
| New 52 week high | No |
| Price crossing up 200d MA | No |
| 100d MA crossing up 200d MA | No |
Is Roku stock a buy?
Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness.
At Stocks2.com, we collected 15 ratings published for ROKU stock in the last month.| Date | Analyst / Broker | Previous rating | Current rating |
| 2019-9-9 | SunTrust Banks | Positive | Hold |
| 2019-9-4 | DA Davidson | n/a | Buy |
| 2019-9-20 | Pivotal Research | n/a | Sell |
| 2019-9-20 | Oppenheimer | n/a | Outperform |
| 2019-9-18 | Guggenheim | n/a | Buy |
| 2019-8-8 | Wedbush | n/a | Hold |
| 2019-8-8 | Stephens | Equal Weight | Overweight |
| 2019-8-8 | Royal Bank of Canada | Sector Perform | Sector Perform |
| 2019-8-8 | Rosenblatt Securities | Neutral | Buy |
| 2019-8-8 | Oppenheimer | n/a | Outperform |
| 2019-8-8 | Macquarie | Neutral | Neutral |
| 2019-8-8 | Loop Capital | n/a | Sell |
| 2019-8-8 | DA Davidson | n/a | Buy |
| 2019-8-8 | CIBC | Outperform | Outperform |
| 2019-8-7 | Vertical Group | Mixed | Positive |
Roku stock analysis
Daily outlook
Roku ended on Dec 6th at $144.26 and dropped a terrible -2.75%.
Shares of Roku dropped a terrible -2.75% and closed at $144.26. On Nov/11 ROKU price bounced up over the SMA of 100 days demonstrating to be a significant support for this stock. On September, ROKU hit a new all time high, pushing higher than on September tops. Check different trading setups that use ATHs as triggers.
Weekly outlook
Roku shares collapsed -10.05% this week, ending at $144.26. By mid November ROKU skyrocketed an exceptional 22.48% in just one week.
Roku stock is drawing an uptrend with rising tops and bottoms. Now trading in between its last bottom and last top, ROKU might consolidate in a flat-base, waiting to break out over or down under . Not so far away is the last all-time high Roku marked early September, but since then it dropped a 18.29%. Since SMA20d and SMA40w crossed up early May, ROKU price climbed $79.24 per share (121.87%). Since price and SMA40w lines crossed up by mid February, ROKU climbed $95.99 (198.86%).
Roku stock price history
Roku IPO was on September 28th, 2017 at $15.80 per share1. Since then, ROKU stock surged a 813.00%, with an average of 406.50% per year. If you had invested $1,000 in Roku stock in 2017, it would worth $8,130.00 today.
1: Adjusted price after possible price splits or reverse-splits.
Roku stock historical price chart
ROKU stock reached all-time highs on September with a price of $176.55.
Roku stock price target is $125.80
Nobody can reliably foresee how stock prices may evolve in the future. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. You should not follow the analysts' ROKU stock price predictions in the hope that they will be met as they may be wrong and not met. We found 14 price predictions for ROKU stock published in the last 30 days:| Date | Analyst / Broker | Action | Previous target | Current target | Diff |
| 2019-9-9 | SunTrust Banks | Raises Target | $63.00 | $160.00 | 154% |
| 2019-9-4 | DA Davidson | Raises Target | $135.00 | $185.00 | 37% |
| 2019-9-20 | Pivotal Research | Initiates | n/a | $60.00 | - |
| 2019-9-20 | Oppenheimer | Raises Target | $120.00 | $155.00 | 29.2% |
| 2019-9-18 | Guggenheim | Raises Target | $119.00 | $170.00 | 42.9% |
| 2019-8-8 | Wedbush | Reiterates | n/a | $105.00 | - |
| 2019-8-8 | Stephens | Upgrades | $84.00 | $120.00 | 42.9% |
| 2019-8-8 | Royal Bank of Canada | Reiterates | $90.00 | $107.00 | 18.9% |
| 2019-8-8 | Rosenblatt Securities | Upgrades | $77.00 | $134.00 | 74% |
| 2019-8-8 | Oppenheimer | Raises Target | $79.00 | $120.00 | 51.9% |
| 2019-8-8 | Macquarie | Reiterates | $66.00 | $110.00 | 66.7% |
| 2019-8-8 | Loop Capital | Raises Target | n/a | $80.00 | - |
| 2019-8-8 | DA Davidson | Raises Target | n/a | $135.00 | - |
| 2019-8-8 | CIBC | Reiterates | $79.00 | $120.00 | 51.9% |
| (in average) | $91.20 | $125.80 | 38.0% |
Financials and fundamental analysis
Earnings date and Earnings per Share
Roku presented outstanding results for 2018-Q4 on February. Roku boosted Earnings per Share (EPS) by 150.00%, beating analysts estimates of $0.02. Roku posted $0.05.| Quarter | Reporting date | Estimated EPS | Actual EPS | Surprise |
|---|---|---|---|---|
| 2017-Q1 | - | n/a | -0.09 | n/a |
| 2017-Q2 | - | n/a | -0.16 | n/a |
| 2017-Q3 | - | n/a | -0.29 | n/a |
| 2017-Q4 | 2018-02-21 | -0.11 | 0.06 | n/a |
| 2018-Q1 | 2018-05-09 | -0.16 | -0.07 | n/a |
| 2018-Q2 | 2018-08-08 | -0.15 | n/a | n/a |
| 2018-Q3 | 2018-11-07 | -0.13 | -0.09 | n/a |
| 2018-Q4 | 2019-02-21 | 0.02 | 0.05 | 150.0% |
| 2019-Q1 | - | n/a | n/a | n/a |
| 2019-Q2 | - | n/a | n/a | n/a |
Annual financial results
In 2018, Roku annual revenues rocketed an exceptional 44.80% to $742.51 M dollars from $512.76 marked in 2017. When comparing 2018 vs 2017, likewise, profit margin (that is, the net income divided by revenues) skyrocketed a 11.19% to -1.19%.| Year | Sales | YoY | Income/(margin) | YoY |
|---|---|---|---|---|
| 2015 | $320 M | - | $-40.61 M-12.7% | - |
| 2016 | $399 M | 24.63% | $-42.76 M-10.7% | 5.29% |
| 2017 | $513 M | 28.63% | $-63.51 M-12.4% | 48.53% |
| 2018 | $743 M | 44.80% | $-8.86 M-1.2% | -86.05% |
Quarterly financial results
Roku posted $275.74 M in revenues for 2018-Q4, a 59.04% up compared to previous quarter. Reported quarter earnings marked $6.78 million with a profit margin of 2.46%. Profit margin soared a 7.95% compared to previous quarter when profit margin was -5.49%. When comparing turnover to same quarter last year, Roku sales marked an astounding growth and climbed a 46.47%. Looking back to recent quarterly results, Roku posted 3 negative quarters in a row.| Quarter | Sales1 | QoQ2 | Income1/(margin) | QoQ2 |
|---|---|---|---|---|
| 2017-Q1 | $100 M | - | $-8.70 M-8.7% | - |
| 2017-Q2 | $100 M | -0.46% | $-15.51 M-15.6% | 78.28% |
| 2017-Q3 | $125 M | 25.25% | $-46.24 M-37.1% | 198.10% |
| 2017-Q4 | $188 M | 50.87% | $6.94 M3.7% | -115.01% |
| 2018-Q1 | $137 M | -27.45% | $-6.63 M-4.9% | -195.58% |
| 2018-Q2 | $157 M | 14.82% | $0.53 M0.3% | -107.93% |
| 2018-Q3 | $173 M | 10.57% | $-9.53 M-5.5% | -1,911.22% |
| 2018-Q4 | $276 M | 59.04% | $6.78 M2.5% | -171.15% |
Roku ownership
When you are planning to buy a stock, it's worth to review its ownership structure.Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Roku, 0.86% of all outstanding shares are owned by its staff.
In case of Roku stock, 61.38% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for ROKU stock account 0.00%, no big difference from last month.
The following table compares ownership indicators for other stocks related to Roku:
| ROKU | MSN | |
|---|---|---|
| Market cap | $13.2 B | $17.3 M |
| Total shares | 91.5 M | 21.0 M |
| Float shares | 90.0 M | 5.8 M |
| - Institutional holdings (%) | 61.4% | 11.6% |
| - Insider holdings (%) | 0.9% | 72.4% |
| Shares in short selling | 0.0% | 0.0% |
Roku summary
| Friday, December 6th, 2019 | |
|---|---|
| Open | $148.60 |
| Close | $144.26 |
| Day range | $143.13 - $149.79 |
| Previous close | $148.34 |
| Session gain | -2.75% |
| Average true range | $9.47 |
| 50d mov avg | $135.38 |
| 100d mov avg | $131.76 |
| 200d mov avg | $105.56 |
| Daily pattern | lt02a |
| Weekly pattern | lt06a |
Roku performance
To measure stock performance is always good to benchmark with competitors or related stocks. For Roku, the comparison is made against Array.| Stock | 3m | 6m | 12m |
|---|---|---|---|
| ROKURoku | -15.07% | 41.61% | 280.43% |
| MSNEmerson Radio | -21.90% | -21.90% | -43.06% |
Roku competitors
Defining a list of competitors for Roku it's not an easy task. We selected just one public company that in our opinion is related to and can be considered Roku competitor:Latest Roku stock news
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