Last week, an AI robot contributed to ROKU's 5.80% profit.
AI trading robot from Day Trader, Popular Stocks ($1.4K per position): Long Bias Strategy (TA&FA), which was a top performer in the robot factory over a week, generating 5.80% for ROKU.
However, my analysis of ROKU's Momentum Indicator shows that it moved below the 0 level on April 17, 2023, indicating a potential shift to a new downward move. This is a significant development that traders should take into consideration.
Traders who hold ROKU shares may want to consider selling them or exploring put options. My analysis shows that Tickeron's A.I.dvisor has looked at 81 similar instances where the indicator turned negative, and in 70 of the 81 cases, the stock moved further down in the following days. This indicates that the odds of a decline are at 86%, which is a high probability of a downward move.
Turning to ROKU's earnings report on April 26, the company reported earnings per share of -137 cents, beating the estimate of -148 cents. This is a positive sign for the company, indicating that they are performing better than expected. However, with 8.35M shares outstanding, the current market capitalization sits at 7.88B, which may cause some concern among investors.
In summary, ROKU is currently facing a potential shift to a new downward move, and traders should take this into consideration. However, the company's recent earnings report beat estimates, which is a positive sign. As a technical analyst, I would recommend monitoring the Momentum Indicator and considering put options to manage the downside risk of holding ROKU shares.
ROKU sees its Stochastic Oscillator ascending out of oversold territory
On December 24, 2024, the Stochastic Oscillator for ROKU moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 62 instances where the indicator left the oversold zone. In of the 62 cases the stock moved higher in the following days. This puts the odds of a move higher at over .
Technical Analysis (Indicators)
Bullish Trend Analysis
ROKU moved above its 50-day moving average on December 02, 2024 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for ROKU crossed bullishly above the 50-day moving average on December 09, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 12 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ROKU advanced for three days, in of 304 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 187 cases where ROKU Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on December 18, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on ROKU as a result. In of 94 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for ROKU turned negative on December 19, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ROKU declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
ROKU broke above its upper Bollinger Band on December 04, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. ROKU’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.962) is normal, around the industry mean (5.729). P/E Ratio (66.667) is within average values for comparable stocks, (92.419). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.987). Dividend Yield (0.000) settles around the average of (0.040) among similar stocks. P/S Ratio (2.609) is also within normal values, averaging (29.638).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ROKU’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 85, placing this stock worse than average.
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a developer of applications for digital media
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