Roku (NASDAQ: ROKU) is an American streaming TV and consumer technology company.
Founded in 2002 by serial entrepreneur Anthony Wood, the company attracted a $6 million investment by Netflix in 2008 to build a content player for consumer televisions. From there, Roku capitalized on the rise in popularity of on-demand streaming media.
Today, the company has a range of devices to suit a myriad of consumer and business needs - including budget-friendly USB streaming through to the Hisense + Roku high definition 4k television. With $1.29 billion revenue in 2019 across hardware, streaming and its targeted advertising platform, Roku is a strong performer in the on-demand media space.
Roku stock price
Roku listed on the NASDAQ in September 2017 at $26.54 and kept within the $25 to $75 price range through to December 2018, when it began a rapid ascent.
Over the 18 months to June 2020, Roku shares went as high as $169 in September 2019 (before crashing to $99.74 three weeks later). However, it has remained above $100 during most of the period.
Thanks to the growing demand for streaming TV services, Roku could be well-placed for further growth.
What the bears are saying
- Smart TV’s are getting smarter: One of Roku's primary revenue sources is hardware streaming players. However, many smart TV's like those from Samsung, LG, and Sony are now integrating software streaming apps directly into the TV's menu, negating the need for a hardware device.
- It’s a small player in a big market: With companies like Samsung, Google, and Amazon in the space, there is a risk that Roku could easily get dislodged through price competition or new delivery methods by the large players.
- Consumer tastes can change: Roku offers a good range of streaming features, but if they don’t keep up with the latest in consumer preferences, they could become unpopular very quickly.
What the bulls are saying
- Roku has a unique opportunity for ad revenue: Roku has a ‘self-service’ advertising platform that enables content creators to run advertising across Roku streamed services.
- They’re attracting popular services and content: Peleton (the incredibly popular, on-demand fitness platform) has launched on Roku in the U.S. in July 2020, adding further variety for users.
- The pandemic could help Roku’s revenue for some time to come: Millions of people across the world in Roku's distribution markets are spending more time at home (or are at home entirely) due to the pandemic. As a result, the demand for streaming services remains high.
How to invest in Roku with Uphold
Here’s how easy and fast it is to get started:
- Go to Uphold.com and click ‘Sign up’.
- Enter your email address, create a password, and complete a 2-minute identity check.
- Your account will then be activated, and you can start using Uphold.
You can then fund your account to invest in Roku shares with your debit card, credit card, bank account, or crypto deposit. Your Uphold account can also be used to make payments to vendors, and send money to friends on the other side of the world, and more.
Uphold’s ‘Anything-to-Anything’ trading experience will make any exchange a seamless, commission-free process.
*U.S. stock trading is not available in the U.S., U.K., and certain other jurisdictions.
This article is for informational purposes only and takes no account of particular personal or market circumstances, and should not be relied upon as investment, tax, or legal advice. For investment, tax, or legal advice, and before taking any action you should consult your own advisors. Note that assets such as equities present unique risks for investors.
This content is correct as of October 2020
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