Roku Inc (NASDAQ:ROKU) has been one of the best growth stocks to own in the market for a considerable period of time. Much of that is due to the business decisions made by the company in recent years.
Video Streaming Platform
The company gets most of its revenues from its video streaming platform and also makes devices for the same purpose. The devices are generally sold at around the cost of making them and Roku derives income from the advertising displayed there.
The device and advertising model has proven to be highly rewarding for the company. In a new development, it has emerged that the company is now eyeing European expansion.
Roku is already established in the United States and seven other countries in the region. On Friday, the company released Roku TVs in the United Kingdom. From this week, the Hisense Roku TV will be available for purchase in the U.K. and it is a timely move considering the fact that the holiday shopping season is going to kick in soon.
Is Growth A Big Target For ROKU?
The TV is equipped with the Roku operating system and will allow the company to earn through advertising. It is a significant move in the company’s history and if it can gain a foothold in the growing European market, then it could prove to be a masterstroke in the long term.
Over the past few years, Roku has enjoyed staggering levels of growth in the United States and experts believe that it could just be the start of the company’s growth explosion. An analyst at William Blair stated that he expects the company to generate a similar sort of growth when it eventually expands into the lucrative international market.
Streaming may be still a relatively new industry but it is growing fast and as Roku has already demonstrated, there is a lot of demand for ad-supported streaming devices. Investors and market watchers will be following its performance in the U.K. quite closely.
