ROKU (NASDAQ:ROKU)

CAPS Rating: 1 out of 5

Caps

How do you think ROKU will perform against the market?

Add Stock to CAPS Watchlist

All Players

40 Outperform
55 Underperform
 

All-Star Players

7 Outperform
31 Underperform
 

Wall Street

0 Outperform
0 Underperform
 

Top ROKU Bull/Bear Pitches

The best Bull and Bear pitches based on recency and number of recommendations.

TMFBreakerJava (99.75)
Submitted November 10, 2017

With the unplugging trend in full swing Roku affordably brings Netflix, Youtube and the internet to television screens.

TSprings11 (52.19)
Submitted September 30, 2017

Initial thought. Roku? Ew. Okay but lets play the market cap game. Hmmm ill go with 700M. Answer: 2.5 BILLION? What? Maybe I am missing something, but to me there is nothing that Roku can do that Amazon, Apple, Google, and even Sony with the… More

ROKU VS S&P 500 (SPY)

ROKU Summary

Fools bullish on ROKU are also bullish on:

Fools bearish on ROKU are also bearish on:

Recent Community Commentary

Read the most recent pitches from players about ROKU.

Recs

1
Member Avatar TMFFlygal (99.05) Submitted: 12/1/2017 3:40:04 PM : Underperform Start Price: $43.36 ROKU Score: -3.98

Put me in with the folks that think that 10 times sales is crazy for this device company. Amazon has fire tv for very low prices, why would anyone want Roku?

Recs

0
Member Avatar superdav42 (< 20) Submitted: 11/30/2017 8:12:29 PM : Outperform Start Price: $43.74 ROKU Score: +3.18

Streaming is the next big thing and ROKU is building one of the best platforms for it.

Recs

1
Member Avatar jed71 (99.84) Submitted: 11/30/2017 10:58:20 AM : Underperform Start Price: $45.16 ROKU Score: +0.38

I think I have mentioned before that I normally try to avoid companies with any sort of brand, even when the brand recognition is weak. ROKU is one I just cannot help putting a red thumb on. It has rocketed from an IPO price of $14 a share all the way to just over $51 yesterday. Has the run higher stopped? I really have no idea, but this feels like a good spot to put a down thumb on a company with a questionable business plan and what I think is fierce competition.

My biggest concern here is that I don’t really see much of a need for a ROKU device any longer. Google, Apple and Amazon all have competing devices / products. These firms also have the ability to outspend ROKU on marketing, technology research and product design. ROKU feels a little like GoPro when it first went public – lots of believers, but the business plan and competition are fierce.

Earnings look like they will be negative for the next several quarters and I feel like a 10x price to sales is incredibly excessive. I am estimating to that to justify current pricing they would have to grow at a rate of 25% a year for multiple years and become profitable very quickly. Maybe this is possible, but I highly doubt it.

Finally, I recently purchased a new TV which had ROKU loaded onto the device. I do use the service, but I don’t find it to be nearly as intuitive as either the Apple TV or the Amazon Firestick. In addition, the TV was super cheap – I have no idea how ROKU is making any money from their software when these mid-sized TV’s are selling for so little. I may be wrong short term here, and this might run a little higher but over the medium to longer term, I am confident ROKU share price will come back down to a more reasonable valuation. I am estimating a more reasonable valuation - price target off future earnings is $22 a share. (this is not an endorsement to sell short or buy shares – do your own research)

Leaderboard

Find the members with the highest scoring picks in ROKU.

Score Leader

nyresearcher

nyresearcher (27.78) Score: +143.27

The Score Leader is the player with the highest score across all their picks in ROKU.

Top
Pick
Member Name Member
Rating
Start
Date
Call Time
Frame
Start
Price
Stock
Gain
Index
Gain
Score Commentary
nyresearcher 27.78 9/28/2017 Outperform 5Y $18.19 +149.92% +6.64% +143.27 0 Comment
This player feels very strongly about this pick and has marked it a Top Pick. Top Picks do not affect a player’s score. SurfingFriendly 56.63 11/8/2017 Outperform 5Y $18.76 +142.39% +2.93% +139.46 0 Comment
timbng 49.16 10/30/2017 Outperform 5Y $18.72 +142.84% +3.77% +139.08 0 Comment
sjterry2727 < 20 11/8/2017 Outperform 5Y $18.80 +141.83% +2.98% +138.84 0 Comment
ETMatyahoo 30.15 10/24/2017 Outperform 5Y $19.96 +127.76% +4.06% +123.70 1 Comment
This player feels very strongly about this pick and has marked it a Top Pick. Top Picks do not affect a player’s score. clanza875 35.18 10/18/2017 Outperform NS $22.06 +106.08% +4.30% +101.78 1 Comment
BeatdaMarket 59.24 10/4/2017 Outperform 1Y $22.17 +105.05% +5.30% +99.75 0 Comment
BornToBeBullish 56.09 10/16/2017 Outperform 5Y $22.97 +97.91% +4.52% +93.39 0 Comment
afrespect 64.68 10/16/2017 Outperform 5Y $22.97 +97.91% +4.52% +93.39 0 Comment
TMFsyarian 35.82 10/2/2017 Outperform 1Y $25.20 +80.40% +6.07% +74.33 1 Comment

Wall Street

See what the Wall Street professionals think, according to their public statements and filings.

There are no Wall Street tracker picks for ROKU.

Featured Broker Partners