Roku : A buying opportunity when this company's stock falls
Since the beginning of the year, Roku stock has seen a 29% decline. However, this situation may present an interesting buying opportunity for several reasons:
1. Unique Business Model :$ROKU-1.4% has an innovative advertising and streaming-based model, which includes streaming devices and smart TVs. Despite recent losses, Roku has plans to achieve profitability and positive free cash flow in the near future.
2. Growth in Streaming Hours and Users: $ROKU-1.4% has seen a 20% increase in streaming hours and 10 million active users. This trend indicates strong user engagement and growing interest in streaming.
3. Relatively cheap stock: Roku $ROKU-1.4%'s stock is now relatively cheap compared to its competitors. Roku's price to sales (P/S) ratio is less than three times, while Netflix's ratio is 8. This suggests the potential for future growth in Roku stock.
4. Future Plans: $ROKU-1.4% is looking to achieve profitability and plans to increase revenue and free cash flow. Its management forecasts positive earnings in 2024 and beyond.
Although Roku faces challenges to profitability, the long-term outlook is positive. If you believe in Roku's potential and its ability to monetize its growing user base, the company's stock may offer an attractive investment opportunity.
