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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Could Roku Fund Your Retirement?

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:

  1. Walmart (NYSE: WMT): The emergence of the American middle class
  2. Home Depot (NYSE: HD): Do-it-yourself home repair
  3. Microsoft (NASDAQ: MSFT): The emergence of the PC
  4. Intel (NASDAQ: INTC): The emergence of the PC
  5. Cisco Systems (NASDAQ: CSCO): The emergence of the Internet
  6. AOL (formerly NYSE: AOL): The emergence of the Internet
  7. Amazon (NASDAQ: AMZN): The emergence of e-commerce
  8. Apple (NASDAQ: AAPL): The emergence of mobile
  9. 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.

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.)