The Basics:
Roku is a brand of hardware digital media players manufactured by American company Roku, Inc. They offer access to streaming media content from various online services. The first Roku model, developed in collaboration with Netflix, was introduced in May 2008.
Trade idea:
Although markets as a whole (especially some names in tech) have been taking a beating recently, it may be time to start looking for some discounted stocks to invest in. For the past several years, Roku has been giving very high returns to investors. Beginning trading around $20 a share to start 2018, it reached a high over $450 around the start of 2021. During this push to its all time high, there were several periods where the stock took over a 60% drawdown before recovering. We are down a little more than 60% from all time highs as I am writing this, and if Roku remains a player in the streaming industry I would expect high returns to continue going forwards. If this is the case, I would expect current prices to be a bargain in the coming years.
Risks:
The general market has been pulling back into the beginning of this year. If the market is setting a yearly low around the beginning of the year, I would expect this trade to lead to large returns. However, if the market has already set a high for the year and further downside is ahead of us, I would expect Roku to break out of its trend.
Roku is a brand of hardware digital media players manufactured by American company Roku, Inc. They offer access to streaming media content from various online services. The first Roku model, developed in collaboration with Netflix, was introduced in May 2008.
Trade idea:
Although markets as a whole (especially some names in tech) have been taking a beating recently, it may be time to start looking for some discounted stocks to invest in. For the past several years, Roku has been giving very high returns to investors. Beginning trading around $20 a share to start 2018, it reached a high over $450 around the start of 2021. During this push to its all time high, there were several periods where the stock took over a 60% drawdown before recovering. We are down a little more than 60% from all time highs as I am writing this, and if Roku remains a player in the streaming industry I would expect high returns to continue going forwards. If this is the case, I would expect current prices to be a bargain in the coming years.
Risks:
The general market has been pulling back into the beginning of this year. If the market is setting a yearly low around the beginning of the year, I would expect this trade to lead to large returns. However, if the market has already set a high for the year and further downside is ahead of us, I would expect Roku to break out of its trend.