ROKU - what direction next?

Some think this stock will reach $1000 plus:

And some brokers think it will drop back down to the $300 level:

I thought it would make an interesting topic to have a wee end of week discussion.

Myself, I think it’s market price will retract a little to the $380-400 level in the coming weeks/months representing an opportunity to buy, and could reach $600 by the end of year.

This in the basis they still only have 50m users with 10% outside the US and still has massive growth potential in terms of user base, and are a little overpriced right now as a lot of forward momentum is captured.

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Still can’t believe I sold at $180 and didn’t get back in… :man_facepalming:

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Ive got it in a couple of pies its sitting over 25% in both :slight_smile: happy to hold it long term in them

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Well looking back on this, its dropped 28% year to date, now at $228. I was right on the share price dropping, but only a few trading days to see if it reaches $600 end of year :sweat_smile:

A quick google suggests opinion thinks this might take 5 years to reach $600-800, so I might look more into when the dip will end for entry…

I rate Roku as a solid long term play. Their move into becoming a unified TV OS is clever, especially as Google’s attempt is floundering and the manufacturers software is exceptionally poor.

This will bring optionality via connected TV ads - finally TV ads being specifically targeted to the user rather then hoping you’ve got the right timeslot.

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I quite like LG OS on my tv. I guess if they give in to a central provider that provides some sort of revenue kickback from ads in return for using their software, then they have something pretty niche.

I’ve had ROKU for a while now, it’s gone from one of my best performers to one of my worst.

Sadly I saw the recent drop coming and did nothing, but logic was that it was a long term hold and tricky to time the market.

Short term (<1 year) I don’t see huge upside unless it beats the analyst estimates but share pricd has taken a beating recently so any upside in earnings could result in a spike. Medium term (1-3 years) I do see potential as profits increase, and long term I’m a little unsure - not totally sure of the end game…Is it a sustainable business model as is?

  • how long will dongle market last?
  • do they need bigger partnerships or even a buy out?
  • Hard to say, my gut feel is they really need to crack the built in hardware market. Until the component shortage eases the subdued tv sales will likely create a bit of noise

Holding for now. As much as they were overpriced, I feel there’s been a sharp drop in stocks like roku as if nobody will use it post pandemic - the streaming stats are still good and there’s a lot of investment in R&D that will hopefully filter through to earnings in coming years.

(Just my musings, as always, do your own research)

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