roku stock price

The streaming war has been one of the most talked-about topics in the business press for quite some time, and one company that could greatly benefit from its is streaming device maker Roku Inc (NASDAQ:ROKU).

Earnings Review

The company released its fourth-quarter results recently, and after the initial euphoria from Wall Street, the stock dropped by as much as 12%.

That being said, it should be noted that Roku generated revenues of $411.2 million in revenues, which beat Wall Street estimates of $391.6 million. The losses per share stood at 13 cents a share, which was better than analysts’ estimates of losses of 14 cents a share. 

Last but not least, the total number of active accounts jumped substantially to as much as 36.9 million. However, that is not all. The company went on to state that in 2020, it expects to post revenues of $1.6 billion, which will reflect a year on year growth of as much as 42%. Hence, the drop in the stock price has come as a bit of a surprise for many market participants.

It is being conjectured that disappointment expressed by some analysts like Tim Nollen of Macquarie Research and Dan Forman of Olivetree Financial could have been an important factor in this regard. Both analysts had higher expectations from the company’s earnings.

In a letter to its shareholders, Roku has made some impressive predictions. The company revealed that the era of cord-cutting is definitely afoot, and leading advertisers, television networks as well as brands are going to embrace streaming in a big way. The company went on to predict that by 2024, as many as half of the total households in the United States are set to cut cords.

Roku asserted that the streaming decade is here, and more people across the globe are going to choose streaming as the main source of watching television. Such bullish views and the company’s performance proves that the drop in the stock price could well have been an anomaly.

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Multi-Trillion Dollar Industry Providing Massive Opportunity in 2019 & Beyond

The most recent global report from the United Nations states that by …

The $40 Billion Dollar Content Gold Rush

Apple, Disney, Netflix, Amazon, NBC, Hulu & More are All Competing Within the Global Video Streaming Market and They All Need the Same Thing…

1 Biotech Stock is Positioning Itself for Success

Biotech has always been one of the best performing sectors in the market. A number of biotech stocks have produced life-changing returns because of their treatments and opportunities. You wont believe what this 1 stock is doing…

What Curing Cancer & HIV Could Mean for This Company, Its Investors & The World!

The opportunity for companies within this sector is massive we are now talking about an industry that is currently worth over US$ 100 billion with the potential in the next 6.5 years to be worth over US$ 200 billion.