Roku: Embrace Q4 Volatility
Update - Nov. 3, 2023
Roku reported an impressive quarter, but the most important aspect was guidance for Q4.
- Forecast $955 million in Q4 net revenue, better than the consensus $951.3 million
- Adj. EBITDA $10 million
Original article posted on Oct. 24
- Roku's Q4 sales targets may be difficult to achieve due to writer and actor strikes reducing content for the video streaming market.
- Despite potential Q4 weakness, investors should focus on Roku's active accounts and streaming hours growth for long-term value.
- ROKU stock is cheap at only 2x '24 sales targets with a bonus cash balance of $1.8 billion.