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At 7x trailing gross earnings, ROKU stock is just too low-cost considering the long term development runway from the intelligent Tv set thesis.
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In spite of lapping difficult comparables, ROKU continues to drive strong growth in both of those Lively accounts and streaming several hours.
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This industry has punished businesses for margin contraction with minimal thought for long-expression normalization. However, I assume that the change from optimistic cash flows to destructive cash flows took lots of investors abruptly.
ROKU ended the quarter with $two billion of Web cash, generating up above 26% of the market cap. With these kinds of a strong balance sheet, I'm not worried about operating losses persisting for a number of quarters.
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