The U.S. TV streaming company Roku Inc. (ROKU) is currently buoying near to its 52-week high. But, considering Roku’s rapid growth this year, analysts at investment banking and asset management firm Needham have recently pointed out that the company can still perform better. Strategy of using the content from streaming services was the big driving force behind Roku’s that growth.
Even if you’re not actively in crypto, you deserve to know what’s actually going on...
Because while leading assets such as Bitcoin (BTC) and Ethereum (ETH) are climbing in value, a select group of public “crypto stocks” are surging right along with them. More importantly, these stocks are outpacing the returns these leading crypto assets aren already producing.
Click here to get the full story… along with our long list of backdoor Bitcoin strategies. It’s free.
Roku is being positively driven by the users’ trend of shifting away from cable TV. The pattern emerged even before the pandemic, so it is not just COVID-19 and a decline in social activity that can be credited to Roku’s current financial performance. The number of viewing devices in households is increased by a wide variety of streaming service providers with their diverse content. If TV was previously the primary source of content, now it’s laptops, computers and smartphones. The company has a unique place among rivals and this is a favorable scenario for Roku as it generates revenue from both video on demand and content subscriptions. Furthermore, working together with several content providers at the same time provides Roku with opportunity to be benefited from the production of any of them.
Needham analysts estimate that shares of ROKU will grow another 20% from the current price to hit $315 next year. The firm has really shown remarkable growth rates so far. Revenue rose 73 percent year-on-year in the third quarter. On the Roku network, which earns revenue from advertisements on the Roku channel and from licensing the Roku operating system to third-party TVs, the driver has increased revenue. The number of active accounts increased by 43% to 46 million, and each subscriber’s monetization improved by 20% year on year.
The current quarter will also be a good time for Roku As content consumption is expected to rise in the quarter, which includes many family holidays. However the primary driver of the growth of the sector, the rejection of cable TV, is not linked to the pandemic, but is a long-term trend.
Roku Inc. (ROKU) stock was worth $279.97 at ring of the bell on December 2, nearly 4.66% off its 52-week high of $293.65.