Profits Skyrocket: Trader Robot Nets +15.56% for $ROKU Last Week
"Day Trader: Medium Volatility Stocks for Active Trading (TA&FA)," recently caught our attention with a remarkable performance, delivering a substantial +15.56% gain while trading ROKU over the previous week. In this article, we delve into the bot's impressive performance, dissect the latest market indicators, and explore insights from the Movies/Entertainment Industry.
Aroon Indicator Signals Potential Bullish Momentum for ROKU
One key indicator that has traders buzzing is the Aroon Indicator for ROKU, which flashed a bullish signal on August 10, 2023. According to Tickeron's A.I.dvisor, this signal is triggered when the AroonUp green line rises above 70 while the AroonDown red line remains below 30. Such a configuration suggests that the stock may be gearing up for a bullish move, presenting traders with an opportunity to either buy the stock or consider call options.
To provide context, we turn to historical data where A.I.dvisor examined 228 similar instances of this Aroon Indicator pattern. In a noteworthy 201 out of these 228 cases, the stock indeed moved higher in the days following the signal. This historical performance points to an 88% probability of a move higher in ROKU's future, making it an enticing prospect for traders seeking to capitalize on potential bullish momentum.
Earnings Report and Market Capitalization
To understand the fundamentals behind ROKU's recent performance, we examine its earnings report. The last earnings report, released on July 27, 2023, revealed earnings per share of -75 cents, surpassing the estimated -126 cents. This positive earnings surprise is a critical factor that could contribute to ROKU's recent gains. Currently, ROKU has 3.83 million shares outstanding, resulting in a market capitalization of 11.81 billion dollars.
To gauge ROKU's market position further, we compare its market capitalization to the average across the Movies/Entertainment Industry, which stands at 6.98 billion dollars. Within this sector, market caps span from 134 million dollars (LRDG) to an impressive 196.23 billion dollars (NFLX). NFLX reigns supreme as the highest-valued company in the group, showcasing the diversity in market capitalization within the Movies/Entertainment Industry.
High and Low Price Movements in the Industry
Shifting our focus to price movements within the Movies/Entertainment Industry, it's essential to grasp the industry's dynamics. On average, weekly price growth across all stocks in this sector amounted to a positive 2%, indicating overall bullish sentiment. However, over the course of a month, the average price growth dipped to -3%, while the quarterly average plummeted to -10%, hinting at more extended periods of volatility.
Within this context, individual companies exhibited varying degrees of price fluctuations. MOCI stood out with an astounding 276% price growth, while AMXX experienced the most significant decline at -74%. These extreme price swings reflect the industry's inherent unpredictability and present both opportunities and risks for traders.
Volume Trends in the Movies/Entertainment Industry
Lastly, we examine volume trends in the Movies/Entertainment Industry. Weekly volume growth across all stocks in this sector saw an average decline of -19%, indicating reduced trading activity. However, over the course of a month, the average volume growth surged by 116%, with a similar trend observed over a quarter, where the average volume growth reached 100%.
These volume statistics illustrate the ebb and flow of investor interest in the Movies/Entertainment Industry. The sharp uptick in monthly and quarterly volume growth suggests that periods of heightened activity may coincide with increased market volatility.
In summary, the performance of the "Day Trader: Medium Volatility Stocks for Active Trading (TA&FA)" bot serves as a compelling example of AI-powered trading in action. The bullish signal from the Aroon Indicator and ROKU's positive earnings surprise have contributed to its recent gains. However, it's crucial to keep in mind the broader industry dynamics, as reflected in price and volume trends, which can significantly impact trading strategies and outcomes. As the market continues to evolve, traders must remain adaptable and informed to navigate the ever-changing landscape successfully.
Momentum Indicator for ROKU turns negative, indicating new downward trend
ROKU saw its Momentum Indicator move below the 0 level on December 18, 2024. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 94 similar instances where the indicator turned negative. In of the 94 cases, the stock moved further down in the following days. The odds of a decline are at .
Technical Analysis (Indicators)
Bearish Trend Analysis
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.
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 62 cases where ROKU's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
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 .
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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Industry description
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Fundamental Analysis Ratings
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General Information
a developer of applications for digital media
Industry MoviesEntertainment