I have been a long-term holder of $ROKU and wanted to express my opinions on why Roku is a great stock and company and long-term hold for years to come.
When I initially bought $ROKU at $44 per share it was cheap and only a few months after IPO and everyone was saying it would never make it with Apple TV, and Chromecast, and too much competition. The thing was no one was looking at the real picture. $Roku currently stands at $399.00 which is a 600%+ gain and it’s more than likely not done by any means. I have to use Roku to stream for almost 6 years and the platform is great and that is why it stays ahead of the competition. Roku is not just a streaming service it is an all-encompassing platform similar to how Windows was more than just a computer software it was an operating platform that could be built off of. With the world leaping ahead in the digital space due to the COVID transitions to distributed work structures and stay-at-home orders ROKU and other stocks in the sector grew a lot.
While COVID has lifted some the increased customer base seems to be sticking as Roku out does cable services with greater access to both free and paid-for content also the cost is low as it is not a rent a device structure as most cable service devices are. This draws in cost-conscious customers. Also, it is easy to set up and install. Roku also allows for hidden channels to be added for those savvy enough to add a custom channel something not so easy to do with a cable company-provided device. And for those that think apple TV is the Roku killer Apple just paid Roku to have their streaming service button added to Roku’s remote showing the platform's adaptability and strength. https://nypost.com/2021/06/30/apple-quietly-buys-roku-remote-button-for-struggling-apple-tv/
Roku has many markets it can expand into in the future as well. There are of course international markets such as Mexico, South America, and Asia which have significant streaming growth that can happen and while smart TVs seem to be dominating in those spaces Roku still has an opening as Smart TVs are higher cost and hard to custom program. Roku devices excel in this area and Roku also has its own smart TV so with the right marketing there exists a window of opportunity to take advantage of. Another market is video communication broadcasting. This is going to be a big one if the world keeps pushing forward with work from home, distributed workforce, and hybrid working structures as people will want ways to multitask when attending work functions that have a virtual option. I can already see this with when I need to listen to a training session it is much easier to use the browser platform and cast the session to a TV for a larger screen and better adaptability. This is an opening for Roku to work with companies such as Zoom, Google, Cisco(WebEx) and create a casting channel for those remote workers to broadcast events and integrate camming for bac and forth in a better visual structure demonstrating the viability of their system as a business platform.
Roku will be a strong player in the future of digital platforms for both business and entertainment which will provide a strong growth path for the long term. There have been roomers for a buyout by Comcast but this is highly unlikely as most Roku core users are cord-cutters and don’t want to deal with cable provides anymore that they have to. Also, Roku won’t come cheap and has no reason to give cable providers a deal when they are winning the race. Roku has even started to take market share from them with the expansion of the Roku channel, the buying a Quibi which could compete with Netflix and Amazon if Roku can expand its content creation footprint, and many of the streaming multi-channel services like peacock give you access to cable services without paying extra. Lastly, Roku has become a household name in America and is providing great branding for a solid growth trajectory.
With all this, I feel Roku is a great stock with a lot of growth still to be had even though that may be some issues such as the recent YouTube follow out https://www.techhive.com/article/3617870/what-cord-cutters-should-do-about-roku-losing-youtube-tv.html that may concern some these are not really issues of you truly examine them. YouTube is still available if you had the app before the follow out and it also opens a way for alt tech channels to add Roku capabilities and take market share from YouTube which has already been happening due to censorship concerns associated with mainstream social media.
This is not and should not be taken as financial advice this is simply an opinion piece. Always do your own research when investing.
