Video streaming company Roku posted an unexpected profit in the fourth quarter.
The company’s fourth quarter earnings came in at 49 cents per share adjusted, while analysts were expecting an adjusted net loss of -5 cents per share.
Revenue rose +58% from the year-ago quarter to $649.9 million, also topping analysts’ forecast of $617.7 million.
The platform’s average revenue per user climbed +24% year-over-year to $28.76 in the fourth quarter, on the back of increased advertising revenue – thanks to its six largest ad buyers more than doubling their spending year-over-year on Roku .
Roku now has more than 51 million active accounts. It streamed 17 billion hours of content (+55% year-over-year) in the fourth quarter and over 58 billion hours (+55% year-over-year ) in the whole year 2020.
For the first quarter, Roku projects revenue of $485 million. Analysts are expecting revenue of about $463 million.
Roku said that it will begin launching Quibi content later this year. It bought the online media network's content in January after Quibi shut down last year.
The RSI Indicator for ROKU moved out of oversold territory on April 18, 2024. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 25 similar instances when the indicator left oversold territory. In of the 25 cases the stock moved higher. This puts the odds of a move higher at .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 57 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 .
The Momentum Indicator moved above the 0 level on May 01, 2024. You may want to consider a long position or call options on ROKU as a result. In of 89 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for ROKU just turned positive on April 22, 2024. Looking at past instances where ROKU's MACD turned positive, the stock continued to rise in of 49 cases 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 306 cases, the price rose further within the following month. The odds of a continued upward trend are .
ROKU may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
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 .
The Aroon Indicator for ROKU entered a downward trend on May 02, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. ROKU’s price grows at a lower 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 (5.464). P/E Ratio (66.667) is within average values for comparable stocks, (87.119). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.822). ROKU has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.040). P/S Ratio (2.609) is also within normal values, averaging (28.528).
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 89, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a developer of applications for digital media
Industry MoviesEntertainment