As the mega cap giants of Amazon, Alphabet, Apple and Microsoft continue their journey of world domination, a smaller tech company name Roku (ROKU) quietly became the number 1 streaming platform in the United States and Mexico. They have over 73 million users and have just begun to scratch the surface of utilizing their proprietary data to monetize engagement. At the nadir of the sell off you could have bought ROKU at a $4.5B market cap and today it’s at around $10B before market opens.
But not for long, as the larger investment world will soon understand that while the streaming wars may be fought at a fever pitch, ROKU sits outside the fray as they operate as a connecting hub for streaming services, advertisers and viewers. They are in a win-win-win-win situation; the happier the three sides of their business are, the more successful they are. And now that ROKU has over 73 million users, they can really start to scale up with targeted programmatic advertising and upfronts to tap into the large audience base.
Roku City wasn’t built in a day and many investors may have gotten burned during the recent sell off… but don’t ignore the fact their platform continues to be the best-in-class OS for streaming television.
“The stock market is a no-called-strike game. You don’t have to swing at everything — you can wait for your pitch.” –Warren Buffett