Roku is a stock that is still new to the stock market and could have a bright future.
How much can you make with Roku stock?
Get up-to-date and precise information on Roku stock with its current price, dividend yield, analysis and our opinion.
This page is for information purposes only and does not constitute investment advice. Remember that investing can be risky.
Want to buy shares in Roku: Our key take-aways
- Stock exchange: Nasdaq
- Stock index: Nasdaq 100
- Dividend 2021: $0
- Dividend forecast 2022: $0
- Performance over 1 year: -68.92%
Should I buy Roku stock?
Investors looking for a stock with long-term promise should consider Roku stock.
With a 100% increase in value since its listing on the stock market three years ago, the stock has performed well as part of a growth strategy.
Moreover, while Roku does not currently pay dividends to its shareholders, this policy may change in the coming years.
Buying Roku stock now and at a low price may therefore be a good idea.
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How can I buy shares in Roku ?
To buy Roku on the stock market:
- Find an online broker offering stock investments.
- Open your trading account by filling out a simple form.
- Deposit funds into your account.
- Search for the stock
- Place a buy order to add Roku to your stock portfolio.
How much are Roku shares?
See price chart below to follow Roku stock price in real time.
Ready to invest in Roku? Shop for through Qtrade.
Why Roku shares could go up:
Roku Group currently enjoys several advantages that could allow its stock to gain many points in the future including:
- Large market share: Roku currently holds the largest share of the advertising market with 59% of streaming devices, making it one of the leaders in this industry.
- favourable trend: The company is also benefiting from the current trend of consumers switching from cable TV channels to streaming formats, which is a significant growth driver.
- Increasing margins: Over the past 3 years, Roku has significantly increased its gross margins, allowing it to turn a profit.
- Strong Balance Sheet: With current assets exceeding current liabilities, the company has a comfortable cash position that can be used for strategic investments.
- International Expansion Opportunities: Roku has the ability to expand into many regions of the world and gain further growth and market share.
- Strategic acquisitions: With the acquisition of Dataxu in 2019, Roku had already demonstrated its ability to make strategic investments. This type of acquisition could happen again in the future.
Why Roku shares could go down:
On the other hand, the Roku group also has some weaknesses that could bring down its stock price:
- High expenses: the group's expenses, mainly in research and development, are still high at the moment and the total expenses exceed the gross profits which weighs on its profitability.
- High debt: Due to lack of profitability, Roku Group has issued common stock to expand its growth and the issuance of new stock may dilute shareholders.
- Easy-to-copy technology: While Roku has obviously made its mark among the major streaming players, the barriers to entry in this sector are low and new entrants could take market share.
- Strong competition: The already strong competition in this sector represents a real threat for Roku which has to face global market giants like Google or Amazon. Competition in the game console sector is also a threat.
- Restrictive regulations: New government regulations may increase Roku's costs in some countries.
- Negative impact of the economic crisis: The global economic recession following the Covid-19 pandemic could also impact Roku's advertising revenues.
Can I buy Roku stock online?
Yes! You can buy Roku shares online. For many buys this is the best way to do it. Here's why:
- The commissions are lower
- You can choose your own investments
- You benefit from analysis and decision support tools
- You can invest in stocks directly or through derivatives like ETFs.
How can I sell my Roku shares?
Canadian registered investment vehicles only permit the sale of Roku shares that are owned and do not permit short selling.
However, it is possible to sell short through a margin account.
Finally, you can use derivatives such as options or CFDs to speculate on decline in Roku's stock price.
What investment vehicles in Canada can hold Roku stock?
Roku shares can be placed in several different savings vehicles including"
- RRSPs: these registered retirement savings plans offer funds that are accessible at the time of retirement and offer an income tax deferral.
- TFSAs: tax-free savings accounts is an incredibly popular short-and long-term tax-free investment vehicle.
- Margin accounts: This account offers leverage and allows you to borrow against the value of the securities you hold to make other investments. It allows you to sell short.
- Cash accounts: This account allows you to trade stocks on North American markets only.
Most investors who choose to buy Roku stock add it to their portfolio individually by placing a purchase order from their online brokerage platfor.
But if you wish, you can also further diversify your investments by investing in a mutual fund or exchange-traded fund that includes Roku stock and other similar securities.
Roku share price history over 10 years:
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Roku dividends and payment dates
In 2021, the Roku Group did not pay a dividend to its shareholders.
Since its IPO, the company has never paid its shareholders for several reasons.
First, the company is not yet fully profitable and is just starting to make a profit with a high debt load.
More importantly, Roku intends to reinvest its profits in strategic investments in order to increase its growth more quickly.
While no dividend has been announced for 2022, it's possible that Roku will decide to change its distribution policy in the future.
What is the dividend yield for Roku over the last 10 years?
The yield on Roku shares is obtained by dividing the annual dividend by the annual average price.
A stock's yield provides key information about a company's dividend policy and its evolution over time and performance.
Annual gross shareholder return = Total dividend for the year ÷ average share price for the same year
The 10-year average return = Sum of annual returns ÷ 10
What analysts are saying about Roku stock:
A critical analysis of Roku stock:
Fundamental analysis data on Roku stock shows mixed signals with the following indicators:
- An attractive growth track record: Based on the current consensus of several leading analysts, in terms of future revenue, Roku is among the best growth stocks in the market.
- Strong financial position: The company's financial position appears to be strong with significant investment capacity.
- Positive consensus: The analyst consensus is mostly positive on this stock with Buy or Overweight recommendations.
- High price target: Analysts' average price target for Roku stock is relatively far from its current price, suggesting attractive upside potential.
- Above-expectation releases: The company has mostly released above-expectation results with a positive surprise rate.
- Low profitability: the group's margins in relation to total sales remain relatively low, indicating low profitability.
- High valuation: in relation to tangible assets and cash flow, the company's valuation appears high.
- Lowered estimates: In recent months, analysts' revenue and earnings estimates have been revised downward.
- Divergent views: Finally, analysts' views of Roku's business and its evolution show significant divergence, indicating a difficulty in analysing this stock.
A technical analysis of Roku stock:
As for the technical analysis of Roku shares in the medium to long-term, the signals are rather negative with the following:
- The RSI is currently near 37.32, which is sending a strong sell signal.
- The short and medium-term stochastics as well as the long-term stochastic are sending an oversold signal.
- The MACD is at the negative level of -7.32, which is another sell signal.
- The MA5, MA10, MA20, MA50 simple and exponential moving averages and the MA100 exponential moving average are sending sell signals. The other simple moving averages MA100 and MA200 are sending buy signals.
- The next technical supports for this stock are currently located at 101.58 and 78.10 while the next technical resistances are located at 145.09 and 164.92.
Who is Roku?
Roku Group Inc. is an American media company. Specifically, the company operates a streaming television platform with streaming players and television-related audio devices available in the United States and certain other countries through retail sales and licensing agreements with service operators.
Roku TV models are also available in the U.S. and certain other countries through licenses with television brands.
The service allows users to access a variety of streaming content and content publishers to reach users with active accounts and use billing services and data analysis tools.
The company also offers the Roku Channel, which provides free content including movies, TV series and news channels.
Finally, Roku also markets smart soundbars and Roku Streambars with an integrated streaming player that automatically connects to the platform.
Currently, Roku employs 3 000 people and generates more than 82.6% of its revenue through its platform, with the remaining 17.4% coming from hardware.
Who are Roku’s competitors?
While Roku operates in a booming industry, it also faces some major competitors, including the following:
- Amazon: Amazon offers Amazon Fire TV streaming media players that allow users to access streaming content.
- Google: With its Chromecast multimedia sector, Google is also a serious competitor to Roku. This line of internet-enabled devices allows users to stream audio and video content to their TV.
- Comcast: this is an indirect competitor to Roku that offers cable television services, a segment in which it is the leader in the United States with more than 190 000 employees.
- Apple: with the Apple TV, Apple also offers a digital multimedia player and a micro-console and offers audio and video streaming on television. The group has strong financial capabilities in the face of Roku.
- Nvidia: this company also offers the Nvidia Shield TV media player that allows you to stream content and play video games.
- Hulu: This premium streaming service offers live and on-demand movies, series and TV shows. It was acquired in 2019 by Walt Disney and now employs over 2 900 employees.
- AT&T: With an eplateform similar to Hulu's, AT&T TV provides access to regional sports networks by package. It currently has over 656 000 subscribers.
- Netflix: Finally, streaming and video-on-demand giant Netflix is of course to be counted among Roku's opponents. It is the most popular VOD service of the moment with over 200 million subscribers.
Who are Roku’s partners?
In order to accelerate its growth and reputation, Roku has established numerous strategic alliances with other companies. Key partners include
- GlobalLogic: Hitachi Group's leading digital engineering company has partnered with Roku to develop over 150 channels on its platform
- Nielsen: Roku recently announced the acquisition of Nielsen's Advanced Video Advertising division, an advertising technology company that will enhance its position in segmented TV advertising.
- TCL: The two companies announced that TCL smart TVs that use Roku's operating system will be distributed in Europe and South America after being successful in North America.
- CTV: Both companies announced the launch of CTV on Roku through a partnership with Bell Media for Canadian users.
- Google: Finally, a partnership agreement was also put in place with Google to keep YouTube and YouTube TV on its streaming platform.