ROKU DD based on the latest SEC 10K

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If you value a company solely based on applying a 20x rev multiple to a business with revenue growing at 58% and accelerating every year, you are going to miss out on every winner 🙂

BiscuitBoi69

I think Roku makes great products. It’s definitely priced high but they have a lot of opportunity. Your range is below basically every analyst estimate out there. You might be missing something.

m4329b

I work in ad tech and own Roku stock. There are others I’d consider in the pure ad tech space like TTD, but i went with Roku because of their sole focus on streaming. The one thing not mentioned in this DD is the share of CTV ad spend ROKU is seeing right now and how that space will grow. It’s at 6Bn/yr vs linear TV at 30bn/yr. All of that linear spend is going to shift to connected tv. So why Roku? They get a share of the ad slots in every app that gets put on the Roku platform, they then sell those ad slots to advertisers through a proprietary media buying platform from their dataxu acquisition and power those ads with proprietary data from their streaming devices. Vertically integrated media, data, and buying tool? Who does that sound like? Facebook, google, etc etc… So, for me, betting on Roku is betting a pure play vertically integrated connected TV company with device, software, and advertising revenue. The potential in the CTV segment is huge, the demand is already through the roof, and not compatible with existing ad tech. CTV is developing several walled gardens of vertically integrated companies and Roku is the most focused bet you can make on it since warnermedia/xandr is buried in ATT and Hulu is still chained to the networks.

penis_berry_crunch

Not that this matters much but I have a roku TV and the casting sucks so bad I bought a chromecast, which works a lot better. I don’t get the hype around the product personally

lhommedelamaison

I agree seriously overvalued only stock Ive ever really considered shorting because I think its a dangerous thing to practice often. What’s wild is some of their stuff about user growth for example the partner with companies like siemens who make tvs to put their stuff in the tv – however they make zero money from this and actually incur a loss on each tv they do it just to boost user number and promote their platform

SomeSortOfBrit