Is Roku A Millionaire Maker?

On September 28, 2017, Roku (NASDAQ: ROKU) made its public debut.

At the close of the day, the price was $23.50 a share. In the weeks following its IPO, the stock traded below $17 a share. No one gave it a second thought…

…until Roku reported its first earnings as a public company, and the stock shot up 57%, from around $17 to $26 overnight.

Roku’s earnings caught everyone by surprise, as they beat analysts’ expectations on the top and bottom line.

Today, a $1000 investment in Roku’s IPO is up 540%.

That begs the question: is Roku a millionaire maker?

The answer is: no one knows for sure. But the one thing I do know is that Roku has the qualities that could make it a very big winner over time.

Throughout history, companies that have gone on to become big winners usually have a founder/CEO who is a visionary. Microsoft (NASDAQ: MSFT) had Bill Gates; Apple (NASDAQ: AAPL), Steve Jobs; and Amazon (NASDAQ: AMZN) has Jeff Bezos.

Meet Anthony Wood – the quiet, unassuming visionary CEO behind Roku’s rise.

Although Roku started out as a hardware company, selling sticks, their plan all along was to ultimately become the operating system for streaming video on demand.

Streaming video on demand will be one of the largest secular trends over the next 10 to 15 years. TV – and TV advertising dollars – are in the beginning stages of a very big shift to streaming video.

In that time, Roku has become the leading platform for streaming video on demand.

It doesn’t matter who wins the streaming video war between Netflix, Amazon, Disney, Hulu or any other player. They will all be accessible via Roku.

Here are some numbers that illustrate Roku’s potential:

  • 29,000,000 active accounts
  • Average amount of time users spend on Roku daily: 3.5 hours
  • Amount of content streamed in 2018: 14.8 billion hours
  • If you look at Roku in terms of users, it is the 3rd largest cable provider in the country.
  • Roku TV is the number one licensed TV in the US.
  • One in four smart TVs in the US are Roku TVs.

Right now, Roku has a market value of $11 billion. If the company continues to execute and becomes the operating system for streaming video on demand, that market cap could grow exponentially.

So…is Roku a millionaire maker?

I can’t say for sure. But it has a chance to be!

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click the image of the book at left to be taken to its Amazon page. 

(Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)

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Ordinary Joes That Became Wealthy Joes!

abundance prosperity wealth

If you’re just getting started in investing, you may not have a great deal of money to begin with.  Don’t let that discourage you.

I know it may be hard to believe now, but it is possible for an average person with an average income to build tremendous wealth.

Here are some real life examples that may provide you with some inspiration:

1. Gladys Holm was a secretary who earned $15,000 a year.  She did two things, however, that are are critical in life to build wealth: she paid attention to what her successful boss was doing, and she emulated it, buying the same stocks he did.  When she passed away in 1996, she left $18,000,000 for research.

2. Sylvia Bloom was another secretary who was smart enough to make investments right alongside her boss.  When she passed away, she left an $8,000,000 fortune.

3. Monsignor James Sweeney was a priest that made a poverty level income for many years and invested in stocks in his spare time. He was worth close to a million dollars when he died.

4. Genesis Morlacci was a part-time janitor and dry cleaner.  He left $2.3 million to Montana’s University of Great Falls at the age of 102.

5. Thomas Drey Jr. was a retired teacher who spent a lot of his time at the Boston Public Library researching companies to invest in.  When he died, he left the library $6.8 million.

6. Jay Jensen was another retired teacher that lived below his means and invested in blue chip stocks for 40 years. His highest yearly salary was $47,000 per year, but he was able to amass a fortune of several million dollars, which he gave to charity.

These are real examples of ordinary people that built extraordinary wealth by doing the following things:

1. Living below their means

2. Investing consistently

3. Staying out of debt

4. Buying stocks of great companies and holding them for the long term

I hope that as many of us as possible end up like these people!

 

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)