Roku: Underlying Growth Prospects And An Improving Cash Position
Summary
- Roku's valuation is at a historically low forward price/sales ratio of 2.71x, suggesting potential for a stock price rebound.
- CEO Anthony Wood highlighted growth in Streaming Households, Streaming Hours, and Platform Revenue in Q2 2024.
- Despite high costs, Roku's improving net margins and fiscal discipline signal potential for positive net income and cash flow in upcoming quarters.
- Strong user engagement and ad revenue growth, alongside hardware rollouts, indicate promising future performance and stock price improvement.
Giuliano Benzin
Roku (NASDAQ:ROKU) shares have suffered a rough 2024 with the shares down around -18% year-to-date. I believe there is potential for a bounce from this level and will outline my reasons here.
An introduction to Roku
Roku is a connected
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