Roku has lost one-quarter of its value in less than a month. It cost $476 a share on July 19. Now it’s at $351. Even at that price, you’re paying 207x earnings, or 20x revenue.
Roku stock fell after earnings.
Operating income also fell from the previous quarter to $69 million.
Those numbers beat estimates, but user growth was seen as slow.
For many people who are invested in Roku it was just time to take profits.
Roku has 37% of the U.S. streaming market, but its global share is dropping.
Europe, Asia and South America are the new growth markets and Roku isn’t a player there (as of yet)
When we look at the technical side of things, Roku is still sitting in a nice uptrend.
We have a long term ascending triangle on the daily.
We’re sitting right at support which gives a nice RR ratio.
We have a double top on the daily.
MACD about to curl
RSI just coming out of oversold territory.
Keep this on your watchlist.
- Factor Four
Roku stock fell after earnings.
Operating income also fell from the previous quarter to $69 million.
Those numbers beat estimates, but user growth was seen as slow.
For many people who are invested in Roku it was just time to take profits.
Roku has 37% of the U.S. streaming market, but its global share is dropping.
Europe, Asia and South America are the new growth markets and Roku isn’t a player there (as of yet)
When we look at the technical side of things, Roku is still sitting in a nice uptrend.
We have a long term ascending triangle on the daily.
We’re sitting right at support which gives a nice RR ratio.
We have a double top on the daily.
MACD about to curl
RSI just coming out of oversold territory.
Keep this on your watchlist.
- Factor Four