Down 20% after-hours. Earnings beat, but Q1 guidance fell short.
Glad I sold on the way up.
Hedge funds making a killing on their massive short positions.
Fair?
If true, good for you! Conspicuously absent earlier in the thread though, right?
Being new to AF with my meager 10 AF points should be a pass for being late to the convo?
You late fool and you can’t say convo
Got it. Thanks.
Damn, 7 bagger.
lol congrats. but what the actual fuck. the revenue is literally 742m. why in the hell is it worth $16b. and its losing money. this market is nutz.
Last quarter revenue was up 59% YoY and per user revenue is growing. They have something like 30M users averaging 3 hours per day usage. Cord cutting is a revolution in how people watch TV and Roku is the OS/browser that is leading the pack. They are content agnostic and offer hundreds, maybe thousands, of apps for streaming. I don’t normally quote myself, but from earlier in this thread:
right but you get what i am saying right. how do we justify a 16b valuation?
to get a 16x valuation, you need 1b in profits growing at least at the rate of inflation.
lets say this is an above average business with 20% net margins. meaning you need 5b in sales.
you need it to grow 60% year for the next 4 years to justify that price.
at 30%, 8 years.
at 15%, 14 years.
at 7.5%, 26 years.
at least for me, thats a tall order to fill.
Roku is a terrible platform. Amazon will take them out 
This is a high growth business. I’ll write more later but suffice to say this business has serious operating leverage. They do not create content. They take a small share streaming fees as a platform service provider. When it went public low margin device sales made up the majority of revenue, now platform revenue is the driver. And, revenue is actually accelerating. It was like 39% growth a few quarter ago and now it is 59% yoy. It is the leading OS for smart TVs. Something like 30% of TVs have Roku installed. Amazon came into the platform space in like 2017 but they still only have about half that. Sure, Amazon could eventually beat out Roku…or they could buy them. Last quarter 70% more time was spend streaming on Roku than a year prior compared to 40% growth in users. As people get used to using the system it makes it stickier. I look out my window and see two giant skyscrapers built by Comcast. Think they may be interested in something like this?
Point is, the assumptions you list above are not out of the question given the nature of the business and acquisitions in the nearer term is a not unlikely exit.