Roku (ROKU, $452.99) posts surprise Q4 profit
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.
ROKU in -4.18% downward trend, declining for three consecutive days on November 26, 2024
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where ROKU declined for three days, in of 309 cases, the price declined further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
The 10-day moving average for ROKU crossed bearishly below the 50-day moving average on November 04, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 11 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where ROKU's RSI Oscillator exited the oversold zone, of 30 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 December 02, 2024. You may want to consider a long position or call options on ROKU as a result. In of 94 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 December 02, 2024. Looking at past instances where ROKU's MACD turned positive, the stock continued to rise in of 48 cases over the following month. 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.
Following a +1 3-day Advance, the price is estimated to grow further. Considering data from situations where ROKU advanced for three days, in of 302 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.
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
Industry MoviesEntertainment