Holiday Amusement: Cord Cutting

Roku best stock of the year

As the Cord Cutting decade draws to a close, it is fitting that the year’s best performing stock among companies worth over $5 billion is Roku, up 355%. The company will report an annual revenue growth rate of 49% despite the fact that the company is yet to earn a profit. The company enjoys the largest market share for streaming devices (39%) and has a growing advertising business, but is playing in an increasingly competitive business. CNBC

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dis-rup-shun: What a great company — Roku has continued to do what it was founded to do — provide a streaming alternative to TVs not designed to receive streaming content. The simplicity of its mission as well as its controls have made it a Wall Street winner. But what about the profit thing? When will lack of profits impact Netflix and Roku as they have Uber and friends? The new video industry is still in the midst of creative destruction (chaos) and the companies that are grabbing the most eyeballs are valued the highest — likely with the expectation that they will be acquired by a company that can generate profits. So enjoy the ride and keep streaming with Roku.

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