Roku’s stock price has been to and fro in a veritable rollercoaster amidst global expansion plans and increased streaming wars competition.
Friday (September 20, 2019) saw Netflix stock fall by 7% after CEO Reed Hastings recognised that big competitors such as Disney and Apple are about to start really making their presence felt.
However, the streaming wars are also having an impact on hardware providers such as Roku, which provides consumers with the chance to stream from multiple platforms in one convenient hub. Roku’s stock price went down by 25.9% last week, which lead to some analysts to start labelling the company is overvalued.
That being said, other traders have acknowledged how Roku is continuing to experience success. In other words, Roku said it was planning to bring in $1B of revenue for 2019 at the beginning of Q1. It planned to expand its streaming device and Roku-powered smart TV on a global scale – and it looks like this has worked, as Roku’s shares have tripled since then. More specifically, Roku’s market value is around $13B.
When you place Roku amongst its competitors, it’s clear there are some big names surrounding it. For example, its main device competitors are Google and Amazon, which are collectively valued at almost $2 trillion on the stock market. When you consider its content service – The Roku Channel – there are numerous strong contenders in the field, with Netflix, Hulu, Amazon Prime Video, Apple TV+ and Disney Plus being names of note.
According to TipRanks analytics, ROKU has been showcased as a Moderate Buy, and the 12-month average price target stands at $124.36 – this is a nearly 15% upside from the point the stock is currently trading at.
While Roku’s stock is still hugely volatile, it’s still up over 250% this year. This leaves Chipotle – the top performer in the S&P 500 – far behind it by almost 160 percentage points.
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