Roku Stock Valuation and Investment
When Roku's streaming services first came out, twelve years ago, they were very few competitors in the streaming industry. Nowadays, thanks to diverse advancements in technology and the internet, the whole industry has grown forcing Roku to up its game to stay on top of competition. Today, the streaming devices offers TV watching without a cable connection. In this article, the valuation of Roku and it's annual growth will be discussed. Furthermore, we will update you on the streaming device's current situation with the COVID-19 outbreak.
Roku Valuation and annual growth
In the beginning of 2020, Roku Inc, was valued at just under 15 billion dollars. Over the years, Roku has had a steady annual growth with just a few downfalls. From 2016 to 2018, the company has seen increases in earnings by 86% from 400 million dollars to 743 million dollars. From 2018 to 2020, Roku's earnings have more than doubled with an 111% increase in revenue. As shown, Roku's financial situation has only been improving and it's projected revenue is even higher than now, Since Roku is in a blooming industry, we can safely state that they are going nowhere in the next years. The internet and television market has been growing excessively and Anthony Wood's company is blooming day by day.
Since the start of the coronavirus outbreak, Roku has seen a sharp spike in the number of users because the population are isolating in their homes. There have been three million new viewers added to the streaming service's database in the first months of 2020. In a public announcement disclosed by Roku, they affirmed that they started to see the effects of the population isolating. For the company, this has resulted in a drastic amount of new accounts and the streaming hours have more than tripled. Following their announcement, their stock increased by almost 5% and they are obviously adapting to the current situation. Even if their situation does seem fortunate, in reality it isn't because of the stock market. The stock market's unpredictability has affected Roku's stock. Now, Roku's stock has been aggressive, meaning that it has climbed and fell drastically for the past few weeks. Even if we can't really say what it will look like, we can observe the small increase it has had in the last month. If we have to predict what Roku will look like in the next quarter, we would say that their would be a decrease in value of Roku's stock.
Roku Stock Analysis - 2020 Price Forecast
Should I invest in Roku?
The short answer to this question is ... no. Even if Roku is in a blooming industry, the stock market is to aggressive and unpredictable to make an educated investment. With the coronavirus, we believe that waiting for a few quarters would be ideal because the COVID-19 outbreak is also unpredictable. The truth is that an economic recession is viable in the next months and the stock market isn't stable.
Hence, over the years, Roku Inc has seen a steady growth in valuation and earnings. Especially since the start of isolation from COVID-19, there have been millions of new users. As we can see Roku has been one of the few companies that has profited from the Coronavirus's outbreak. But these profits have been wiped out because of the stock market's unpredictability.