ROKU - IPO in Sept. 2017, 800% gains -
If you think streaming is the way we are going to consume entertainment in the future, you can look to invest in Roku (ROKU - Get Rating). Shares of Roku have gained a staggering 800% since its IPO in September 2017.
Roku is the largest selling smart-TV operating system in North America and is platform agnostic which allows you to access several streaming applications including Disney+, Netflix, and Amazon Prime as well as a number of ad-supported content platforms.
In the second quarter, Roku sales were up 42% year-over-year, while the number of active accounts grew 41% and the number of streaming hours jumped 65%. However, Roku remains unprofitable and reported a net loss of $43 million in the June quarter, up from a loss of $9.3 million in the prior-year period.
Roku continues to trade at a premium and has a price to sales multiple of 20. However, we can see that the company’s valuation is supported by robust growth.
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