Roku (ROKU, $153.03) beats Q2 revenue estimates
Roku’s second quarter earnings and revenue topped analysts’ estimates.
The video streaming company’s second quarter adjusted net loss came in at -35 cents per share, narrower than analysts’ expected loss of -50 cents per share.
The company’s revenue for the quarter was $356.1 million, compared to analysts’ estimate of $312 million. Revenue grow +42% year over year.
Average revenue per user climbed +18% year-over-year to $24.92. The number of active accounts rose +41% to 43 million.
Looking ahead, Roku said it does not expect television ad spend to return until "well into 2021," but it is optimistic on its ability to grow its ad business, though at a slower pace than was expected before the covid-19 pandemic.
According to Tickeron, ROKU's in Uptrend: Moving Average Convergence Divergence (MACD) Histogram crosses above signal line
This is a Bullish indicator signaling ROKU's price could rise. Traders may explore going long on the ticker or buying call options. In 23 of 25 cases where ROKU's MACD histogram became positive, the price rose further within the following month. The odds of a continued Uptrend are 90%.
Current price $152.65 is above $151.17 the highest support line found by A.I. Throughout the month of 07/06/20 - 08/05/20, the price experienced a +25% Uptrend. During the week of 07/29/20 - 08/05/20, the stock enjoyed a +9% Uptrend growth.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator exceeded the 0 level on July 31, 2020. Traders may consider buying the ticker or exploring call options. In 35 of 39 cases where the ticker's Momentum Indicator exceeded 0, its price rose further within the subsequent month. The odds of a continued Uptrend are 90%.
The 50-day Moving Average crossing above its 200-day Moving Average indicates a buy signal, due to the trend repositioning higher. In 1 of 1 cases where ROKU's 50-day Moving Average crossed above its 200-day Moving Average, its price rose further within the subsequent month. The odds of a continued Uptrend are 90%.
The Aroon Indicator entered an Uptrend today. In 159 of 183 similar cases where ROKU Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 87%.
Bearish Trend Analysis
The RSI Indicator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
The Stochastic Indicator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
The higher Bollinger Band was broken -- a price fall is expected as the ticker heads toward the middle band, which invites the trader to consider selling or shorting the ticker, or exploring put options. In 28 of 32 cases where ROKU's price broke its higher Bollinger Band, its price dropped further during the following month. The odds of a continued Downtrend are 88%.
Fundamental Analysis (Ratings)
Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 82%. During the last month, the daily ratio of advancing to declining volumes was 1.88 to 1.
The Tickeron Price Growth Rating for this company is 39 (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 96 (best 1 - 100 worst) indicates that the company is significantly 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: ROKU's P/B Ratio (29.53) is very high in comparison to the industry average of (4.33). P/E Ratio (0.00) is within average values for comparable stocks, (50.12). Projected Growth (PEG Ratio) (0.00) is also within normal values, averaging (2.03). Dividend Yield (0.00) settles around the average of (1.08) among similar stocks. ROKU's P/S Ratio (8.46) is very high in comparison to the industry average of (1.57).
The Tickeron SMR rating for this company is 96 (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 100 (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 100 (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 75, placing this stock worse than average.
ROKU sees its Stochastic Oscillator climbs 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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General Information
a developer of applications for digital media
Industry MoviesEntertainment