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 19 Apr 24

tl;dr

Roku's (NASDAQ:ROKU) ability to expand its free cash flow and reach positive annual EBITDA earlier than expected prompted Wedbush to reiterate its Outperform rating on the streaming TV and hardware provider. "We believe Roku has found religion in generating and expanding FCF, and will not revert to ...

Roku's (NASDAQ:ROKU) ability to expand its free cash flow and reach positive annual EBITDA earlier than expected prompted Wedbush to reiterate its Outperform rating on the streaming TV and hardware provider. "We believe Roku has found religion in generating and expanding FCF, and will not revert to excessive spending for long-term growth," said Wedbush analysts Alicia Reese, Michael Pachter and Brandon Barron in a Friday note. "Instead, Roku intends to balance new initiatives that result in near-term ROI with expanding FCF and tracking toward positive net income." Roku also continues to grow its market share as advertising dollars venture away from linear TV to digital connected TV, Wedbush notes. However, Wedbush also reduced its price target on Roku by 33%, lowering it to $80 from $120. Roku was down 1% in premarket trading Friday. "Coupled with industry-wide headwinds in media and entertainment spending, we think Roku’s focus on expanding positive EBITDA in 2024 may inhibit its ability to compete on the ecommerce front," Reese added. "We did not include any revenue from ecommerce in our model, but our premium multiple included upside from it." In order to fare better against its competitors, such as Vizio (VZIO), Amazon (AMZN), and Google (GOOG)(GOOGL), Roku needs to improve its automatic content recognition capabilities, Wedbush noted. This allows advertisers to match up geography, demographics, and content by genre to offer more customizable ads. Roku is slated to release its first quarter financial results post-market on Thursday, April 25. A consensus of analysts expects a loss per share of $(0.64) on $850.55M in revenue. Wedbush expects slightly better figures, with a loss per share of $(0.61) on revenue of $855M. Roku has a Hold rating from Seeking Alpha analysts, Wall Street analysts, and Seeking Alpha's Quant system, which routinely beats the market.

More about Roku Inc
Roku Inc Summary

Roku Inc Summary

Roku, Inc. operates a TV streaming platform. The company is headquartered in San Jose, California.

Industry: TECHNOLOGY

Sector: CABLE & OTHER PAY TELEVISION SERVICES

Employees: 8423306000

Revenue: $3,484,619,000

Net Income: -$5.01

EBITDA: $24.61

EPS: -$0.204

Market Cap: $8,377,000,000

PE Ratio: -0.649

Dividend Yield: 0.135

More about Vizio Holding Corp

VIZIO Holding Corp. Stock Analysis

Company: VIZIO Holding Corp.

Headquarters: Irvine, California

Industry: Manufacturing, Household Audio & Video Equipment

Market Cap: $2,125,940,000

Stock Price: $76.71

Dividend Yield: None

P/E Ratio: 8.56

EPS: $0.0168

Revenue: $1,680,000,000

ROE: 10.69%

Beta: 1.117

Volatility: -0.058

More about Amazon.com Inc

Company: Amazon.com Inc

Industry: Trade & Services, Retail-Catalog & Mail-Order Houses

Market Cap: 186.44 billion

PE Ratio: 61.8

Dividend Yield: None

EPS: 2.9

52-Week High: 55.78

52-Week Low: 0.0529

Shares Outstanding: 574.78 million

Price: 198.96

Change: 50.69

Change %: 0.139

More about Alphabet Inc Class C
Alphabet Inc. Class C Summary

Alphabet Inc. is an American multinational conglomerate headquartered in Mountain View, California. It was created through a restructuring of Google on October 2, 2015, and became the parent company of Google and several former Google subsidiaries. The two co-founders of Google remained as controlling shareholders, board members, and employees at Alphabet. Alphabet is the world's fourth-largest technology company by revenue and one of the world's most valuable companies.


Industry: TECHNOLOGY, SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC.

Market Cap: $1,947,764,523,000

PE Ratio: 27.15

Dividend Yield: None

EPS: 5.8

52-Week High: $1,524.34

52-Week Low: $1,175.24

Volatility: 0.24

Average Volume: 307,393,987,000

Stock Price: $1,155.62

Change: 0.56

Change %: 0.135

More about Alphabet Inc Class A

Alphabet Inc Class A

Alphabet Inc. is an American multinational conglomerate headquartered in Mountain View, California. It was created through a restructuring of Google on October 2, 2015, and became the parent company of Google and several former Google subsidiaries. The two co-founders of Google remained as controlling shareholders, board members, and employees at Alphabet. Alphabet is the world's fourth-largest technology company by revenue and one of the world's most valuable companies.

Sector: Technology

Industry: Services-Computer Programming, Data Processing, etc.

Market Cap: 194.8 billion

P/E Ratio: 26.9

Dividend Yield: None

Beta: 5.8

EPS: 24.34

Vol Avg (3m): 0.24

Shares Outstanding: 3.073 billion

Public Float: 307.393 billion

Book Value: 166.12

Price to Book: 0.56

Forward P/E: 0.135

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Disclaimer

The opinions expressed by the writers at Grow My Bag are their own and do not reflect the official stance of Grow My Bag. The content provided on our site is not intended as investment advice, and Grow My Bag is not an investment advisor. We do not endorse buying or selling any cryptocurrencies or digital assets mentioned in our articles. High-risk investments in Bitcoin, cryptocurrencies, and digital assets require thorough due diligence, and all transfers and trades made are at your own risk. Grow My Bag is not responsible for any potential losses and participates in affiliate marketing.