Roku, Inc. was originally established as a limited liability company in Delaware in October 2002 and subsequently registered in Delaware in February 2008. The company pioneered television programming. Roku, Inc. connects users with the streaming content they love, enables content publishers to build and monetize among a large audience, and provides advertisers with unique capabilities to engage consumers. The company is now large in scale. The disruptive content distribution model of TV streaming is changing billions of dollars in economic value. Roku, Inc. is capitalizing on this enormous economic opportunity by providing a leading TV streaming platform for users, content publishers, and advertisers.
ROKU exhibits a strong intermediate-term bullish trend but is currently in a short-term overbought condition, suggesting a hold with a bias towards adding on weakness rather than new purchases at current levels.
Valuation metrics are exceptionally high, with a TTM P/E of 93.81 and P/B of 7.08, indicating the market prices in significant future earnings growth. The current price of $126.67 is near the upper end of the recent trading range and aligns with the upper bound of a reasonable base case valuation.
