Roku: Back On The Cathie Wood Path

 

Update - Mar. 10

Roku Should get most of the cash back, but definitely an interesting development to have nearly $500M of cash at Silicon Valley Bank. 

• Roku stock (NASDAQ:ROKU) turned 3.5% lower after hours after the company stated that it held about 26% of its cash and equivalents at Silicon Valley Bank, which failed Friday and was closed down by California.
• Roku has total cash and equivalents of $1.9B, of which $487M was held at SVB - deposits that are "largely uninsured."
• "At this time, the Company does not know to what extent the Company will be able to recover its cash on deposit at SVB," Roku said.

Original article posted on Feb. 17

• Roku, Inc. reported Q4 2022 numbers that beat analyst estimates while guiding better than expected for Q1'23.
• The video streaming platform reported solid active accounts and streaming hours growth, supporting the ARK Invest base case.
• Roku stock is cheap at $70 at 2x forward sales, but Roku has to hit the new targets of returning to adjusted EBITDA positive in 2024.
• This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More » 

As previously pointed out, the market got far too negative on the story being developed by Roku, Inc. (NASDAQ:ROKU). The macro environment in the digital advertising market was clouding the long-term growth story presented by ARK Investment Management LLC (ARKK) and Cathie Wood. My investment thesis remains ultra-Bullish on the long-term story, with the streaming video platform growing both active accounts and the engagement of those viewers.

Read the full article on Seeking Alpha. 

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