Author Topic: ROKU - Roku  (Read 2295 times)

Cameron

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ROKU - Roku
« on: November 13, 2017, 08:30:16 PM »
A company with a total of negative $255 million in shareholder equity in its recent quarterly report, worse than the negative $193 million shareholder equity on Dec. 31st 2016. Revenue growth was 40% for the quarter as well, losses from operations have been cut in half. Has a solid 195x Price to FCF on a 12 month trailing basis which makes this a screaming buy to any value investor. 7.1 forward PSR, higher than Netflix's PSR at the moment. Current ratio and quick ratios were cut in half on a Y/Y basis. Float is pretty small.

They sell the hardware at near breakeven that acts like a smartphone for your tv which sounds like any other product in the field like the FireTV, Apple TV, Chromecast Etc. Most of the money is made from the platform advertising. Maybe someone with more intellect than me (pretty much anyone), can explain how this company survives? Competition has much deeper pockets than them and directly competing with Apple, Amazon and Google doesn't sound like it will end the same way the romance novels that I read end.

Anyway, this is definitely not a bubble.
« Last Edit: November 13, 2017, 11:50:08 PM by Parsad »


rkbabang

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Re: ROKU - Roku
« Reply #1 on: November 14, 2017, 05:22:23 AM »
I don't know how Apple, Amazon, & Google have not crushed them already, but they haven't.  I've tried Apple TV, Chromecast, and FireTV and the UIs all suck compared to Roku.  I always end up going back to Roku.  I've got TCL Roku TVs in all of the bedrooms of my house and the two 4K TVs have Roku  Ultra boxes attached.  I though the larger companies were going to buyout or crush Roku years ago, but for all their size and money they just can't seem to build a better set top box.

I'm not planning on investing though.

Jurgis

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Re: ROKU - Roku
« Reply #2 on: November 14, 2017, 06:31:35 AM »
I have Roku box. Never tried non-Roku boxes. There's definitely stickiness. OTOH, I only watch Netlix/Amazon on it and I don't know if they get money for this.

(OT perhaps: all non-Ethernet boxes are automatically disqualified. I would not want/try to run video over WiFi.)

No plans to invest.

rkbabang

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Re: ROKU - Roku
« Reply #3 on: November 14, 2017, 06:51:36 AM »
I have Roku box. Never tried non-Roku boxes. There's definitely stickiness. OTOH, I only watch Netlix/Amazon on it and I don't know if they get money for this.

(OT perhaps: all non-Ethernet boxes are automatically disqualified. I would not want/try to run video over WiFi.)

No plans to invest.

I have the Roku Ultra boxes hardwired with cat6 cable, I wouldn't even want to try 4K over wifi, but the bedroom TVs (TCL TVs with Roku built in) are all using only wifi and work fine at 1080p.   I use it for Netflix, Amazon, Playstation Vue (I finally got rid of cable), and surprisingly Sony's free "Crackle" channel has some good original shows.  I've watched "StartUp" and "Chosen" so far, both are good although there are commercials you can't fastforward through which is a little annoying.  And of course the kids use them mostly just for Netflix and YouTube.

« Last Edit: November 14, 2017, 06:53:44 AM by rkbabang »

Cameron

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Re: ROKU - Roku
« Reply #4 on: November 14, 2017, 07:05:12 AM »
I have Roku box. Never tried non-Roku boxes. There's definitely stickiness. OTOH, I only watch Netlix/Amazon on it and I don't know if they get money for this.

(OT perhaps: all non-Ethernet boxes are automatically disqualified. I would not want/try to run video over WiFi.)

No plans to invest.

Unless they have ads over the Amazon and Netflix app then no. Its like the App Store where individual apps have ads.

Cameron

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Re: ROKU - Roku
« Reply #5 on: November 14, 2017, 07:08:53 AM »
I don't know how Apple, Amazon, & Google have not crushed them already, but they haven't.  I've tried Apple TV, Chromecast, and FireTV and the UIs all suck compared to Roku.  I always end up going back to Roku.  I've got TCL Roku TVs in all of the bedrooms of my house and the two 4K TVs have Roku  Ultra boxes attached.  I though the larger companies were going to buyout or crush Roku years ago, but for all their size and money they just can't seem to build a better set top box.

I'm not planning on investing though.

A buyout does seem like the likely outcome.

villainx

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Re: ROKU - Roku
« Reply #6 on: November 14, 2017, 08:49:56 AM »
I don't know how Apple, Amazon, & Google have not crushed them already, but they haven't.  I've tried Apple TV, Chromecast, and FireTV and the UIs all suck compared to Roku.  I always end up going back to Roku.  I've got TCL Roku TVs in all of the bedrooms of my house and the two 4K TVs have Roku  Ultra boxes attached.  I though the larger companies were going to buyout or crush Roku years ago, but for all their size and money they just can't seem to build a better set top box.

I'm not planning on investing though.

A buyout does seem like the likely outcome.

Or some Softbank Vision fund type major investment?

I think Roku has serious potential as a company, as folks I know who are not big spenders use it.  That's sort of one of my litmus test, which applied to Costco and Netflix, services or products that are so beneficial even the cheap folks I know buy/use it.  But right now, I'm just lurking around.

TorontoRaptorsFan

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Re: ROKU - Roku
« Reply #7 on: November 14, 2017, 11:04:28 AM »
No stickiness to product. AppleTV 4K is great. iTunes movies in 4K look great. I can bet that sales for 4K Blu-Ray players continued to drop with it's release. Atmos being added soon. How does Roku make any recurring revenue from their boxes? Google, Amazon, Apple, Movie/TV studios have content to charge for...
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mrholty

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Re: ROKU - Roku
« Reply #8 on: November 14, 2017, 11:49:46 AM »
No stickiness to product. AppleTV 4K is great. iTunes movies in 4K look great. I can bet that sales for 4K Blu-Ray players continued to drop with it's release. Atmos being added soon. How does Roku make any recurring revenue from their boxes? Google, Amazon, Apple, Movie/TV studios have content to charge for...

Roku feels like Tivo.  Great product but a company that will never make money.  It will chug along for a while, then it will sue and win some lawsuit that the big guys infringed on a patent.  Stock pops, big company appeals and wash and repeat.

villainx

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Re: ROKU - Roku
« Reply #9 on: November 14, 2017, 04:26:33 PM »
No stickiness to product. AppleTV 4K is great. iTunes movies in 4K look great. I can bet that sales for 4K Blu-Ray players continued to drop with it's release. Atmos being added soon. How does Roku make any recurring revenue from their boxes? Google, Amazon, Apple, Movie/TV studios have content to charge for...

The one thing Roku has going for it is that it's not Apple, Amazon, Google, etc.  Some folks don't like those companies, or just avoid them for whatever reason.