OMG! What a ride owning Roku (NASDAQ: ROKU) has been since going public!
In September of 2017, Roku went public and closed at $23.50 a share. Since then, the stock has gone to $57, then $29, then $77, back down to $26, and as of this writing, back up to $64.
Roku is a leader in streaming video on demand (SVOD). We are currently in the midst of a huge shift in which television, and TV advertising, is moving to streaming.
Roku has become the leading platform for streaming video in the United States. Today, one in five households in the US is using the Roku platform to stream at least one portion of their TV viewing.
Roku has 27 million active users that cut the cord, and this trend is only going to continue to grow. The number of households not paying for traditional TV today is roughly 39 million, and that number is projected to grow to 55 million by 2022.
The number of subscription video subscribers worldwide is 473 million, and is expected to grow to 650 million by 2020.
Although this projected growth is impressive, it’s really just scratching the surface as to how big streaming can become!
When a young company becomes a leader in a brand new industry, oftentimes massive wealth can be created. If we go back in history we can find plenty of examples:
- Walmart (NYSE: WMT): The emergence of the American middle class
- Home Depot (NYSE: HD): Do-it-yourself home repair
- Microsoft (NASDAQ: MSFT): The emergence of the PC
- Intel (NASDAQ: INTC): The emergence of the PC
- Cisco Systems (NASDAQ: CSCO): The emergence of the Internet
- AOL (formerly NYSE: AOL): The emergence of the Internet
- Amazon (NASDAQ: AMZN): The emergence of e-commerce
- Apple (NASDAQ: AAPL): The emergence of mobile
- Netflix (NASDAQ: NFLX): The emergence of streaming video on demand
Roku is poised to become the “Microsoft of TV”. This is definitely a company to put on your watchlist.
Disclaimer/Disclosure Statement: Information in this article is not intended to be a recommendation to invest in any stock. Rather, it is presented for readers’ education and consideration when making their own investment decisions. The author has no position in ROKU at this time.
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