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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Like A Lottery – But With Better Odds!

Good morning!

For the past couple of weeks, I have debated whether or not I should talk about my personal investment decision regarding cryptocurrencies.

I am a stock guy first and foremost. I believe the stock market is the best path to building wealth, period. (I was going to say “for the average person” – but it’s the best path for everyone.)

That being said, I have been an observer and researcher of cryptocurrencies since I first learned about them in 2017.

I saw bitcoin move from $1299, to eventually $19,900, then back to $3090.

After watching bitcoin these past two years, I have come to the conclusion that it may very well be here to stay.

Think about the history of technological breakthroughs. At the end of every decade, there has been a new technology that has emerged, giving us a glimpse of the future. Those of us paying attention were able to capitalize and make a fortune:

Year Technological Breakthrough
1978 Apple
1986 Microsoft
1995 Amazon
2007 Mobile
2015 Cryptocurrencies

I know that cryptocurrencies were around long before 2015, but the point in which the general public becomes aware is the point I’m most interested in.

I think bitcoin may be the very beginning of a trend that could potentially dwarf the return you get from owning stocks.

I know that may sound crazy!

But every new trend accelerates growth by creating more value than the previous trend in less time.

My personal investment approach regarding crypto is to allocate 1% of my investments to it. That way only a small percentage of my net worth is tied to bitcoin.

Cryptocurrencies are risky – but may be a glimpse into the future of money.

I am not sure how things will play out.

But the potential is enormous.

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.)