Roku https://ir.roku.com brings TV internet streaming to viewers through its TV sets and add-on devices. Albeit a lofty P/E, it seems as if a breakout of the recent decline has tsken place. Some pundits are suggesting a return to the rarefied air of ~$75. While i don't believe that forecast, I expect this could return to the ~$60 area. I have a cash covered put expiring Jan 18, bought shares Wednesday and will try again to sell a call Thursday. There is premium to be had. Giddyup.
Do you think we will see a slight fallback in the share price in the short term? Might be an interesting buying opportunity? Next Netflix?
On Dec 31 I had sold a Jan 18 exp cash-covered $27 put. The stock was bouncing around $29-30; I was bottom-fishing and the price ran up. So I will only collect premium. This week this consumer- discretionary stock was fueled by CES/Las Vegas visibility. I don't think it will can challenge Netflix, but I would exoect it to remain more popular than Amazon. Watching the daily wiggles these past few days my gut reaction is maybe perhaps possibility an oscillation might may produce a dip as low as $36-37. I I have no scientific evidence though. YMMV.
I see a company with a relatively low cost base which, in the right environment, should be able to rollout services right across the world. A poor mans Netflix? Possibly, but if it makes money then it is good enough for me Certainly one to watch and a good spot.
Interesting - maybe not the next Netflix but a potential disruptive influence all the same. We all know what big companies do with disruptive influences - take them over
If you were going to buy, now would probably be the time - a pull back on the recent rally. Looks like short term profit taking but we shall see over the next couple of days. I dont care what anyone else says, if you do your research and you are patient (and willing to take a degree of risk) there are still some untapped gems out there. Finding them before the market does is the challenge!
My expectation is that ROKU will climb back into the $50's based upon market action this past year. I don't expect the $70's again but we shall see. Giddyup.