Roku Stock Reprices and Resets Itself

Roku (NASDAQ:ROKU) stock of streaming platform and hardware has fallen (-58%) throughout the year (-58%) since its all-time high of $490.76 on July 19, 2021. The cord-cutting tailwind continued to drive. TV streaming devices surpassed legacy set-top and DVR boxes in the US for the first time, by 65% ​​to 63%, respectively. Roku is a major enabler and benefactor of this stat as it continues to grow its distribution base. It’s The Roku Channel has grown into a top five channel on the platform. Although the growth rate has declined from the same period a year ago, the statistics are still strong. Supply chain disruption, inflationary pressures and geopolitical conflicts all contributed to pressure on gross margins and TV set sales across the industry. TV sales fell below pre-COVID 2019 levels for the third straight quarter. This impacts Roku as a significant portion of licensing costs are derived from Roku integrated TVs. The company expects these headwinds to continue in the near term, but could set the bar low for the future. Roku remains the leader in TV streaming, still growing 39% in its fiscal Q1 2022, adding 1.1 million new active accounts in the quarter to bring the total active account to 61.3 million users. Cautious investors waiting for a more reasonable valuation of Roku stock can look to opportunistic pullback levels to gain exposure. – MarketBeat

Q1 Fiscal 2022 Profit Release

On April 28, 2022, Roku reported its fiscal results for the first quarter of 2022 for the quarter ended March 2022. The company reported a loss of earnings per share (-$0.19) against consensus analyst estimates for a loss of (-$0.21). , a stroke of $0.02. Revenues grew 27.8% year-over-year to $733.7 million, better than analysts’ estimates of $718.56 million. The platform’s revenues grew 39% year-over-year to $646.9 million. Player revenues declined (-19%) year-over-year to $86.8 million. Active accounts grew to 61.3 million, up 7.7 million year over year. Average revenue per user (ARPU) increased 34% year-over-year to $42.91.

Disadvantage guidance

The company lowered its forecast for Q2 2022 revenue to around $805 million, against $823.13 consensus estimates. Fiscal revenue for the full year 2022 is expected to grow 35% year-over-year to $3.73 billion, compared to consensus analyst estimates of $3.72 billion.

Takeaway for conference calls

Roku co-founder and CEO Anthony Wood noted that Q1 2022 revenue grew 39% year-over-year, driven by higher ad revenue and content distribution. He noted, “From day one, the Roku platform has been built to work at the center of TV streaming and meet the needs of every participant in the ecosystem. For consumers, we provide an excellent experience with trusted discovery tools that allow them to find and view content the way they want, whether through ad-supported or subscription services.” He noted that content owners benefit from the platform by helping to build and retain viewers while monetizing content.Ad-supported streaming is the most important part of the streaming ecosystem.This is underlined by the success of The Roku Channel, which has grown to become a top five app on its platform in the US for the third straight quarter, is also because a top five streaming engagement app in the US will see the company launch new offerings of advertising products and content for advertisers and will continue to invest to remain the leader in TV streaming.

Roku Stock Reprices and Resets Itself

ROKU Opportunistic Pullback Levels

Using the gun charts on the weekly and daily timeframes provides an accurate picture of the landscape for ROKU stocks. The weekly rifle peaked near the Fibonacci (fib) level of $117.39 before plunging into the failed weekly stochastic low-band flush attempt. The weekly 5-period moving average (MA) resistance is slowing its descent to $99.20, followed by the weekly 15-period MA at $119, while weekly stochastic attempts are moving back up towards the 10 band. The higher cross-up this time creates a potential weekly divergence floor if it can bounce through a market structure low (MSL) buy trigger level on a breach to $110.56. The 200-period weekly MA is steady at $177.69. The weekly upper Bollinger Band (BB) costs $251.85. The downward trend in the daily gun chart has stalled as the 5-period MA flattened out at $87.14, followed by the 15-period MA flattening at $94.30. The daily lower BBs are $71.71 and the higher daily BBs are $122.68. The daily stochastic tries to settle the 20 band. Cautious investors can watch for opportunistic pullback levels on the $86.39, $83.54 fib, $77.15 fib, $71.71 fib, $67.22, $61.12, $58.22 fib, $53.90 and the $46.39 fib level. Upward trajectories range from the fib level of $117.39 all the way to the fib level of $163.06.

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