Buy ROKU before earnings?
Thursday, after market close, $ROKU (Roku Inc) will report itโs Q4 earnings. It can be interesting to buy this stock before earnings.
๐ง๐ต๐ถ๐ ๐ถ๐ ๐๐ต๐:
Roku is the number 1 TV operating system in the Mexico, Canada and the U.S.
๐ฆ๐๐ฟ๐ฒ๐ฎ๐บ๐ถ๐ป๐ด ๐ต๐ผ๐๐๐ฒ๐ต๐ผ๐น๐ฑ๐
In itโs latest earnings report Roku announced that itโs streaming households rose with 13%. It has 85 million streaming households vs 75 million same quarter last year.
So they are doing a good job in adding new customers. And when you become a Roku customer, itโs likely you stay as a custumor for a longer time. This because you bought a TV with a Roku operating system or you bought a device to connect to itโs operating system. A TV is not something you replace very fast.
Now we already know that Roku reached the milestone of 90 million streaming households. They announced this early january! This is good!
๐๐๐๐ถ๐ป๐ฒ๐๐
Roku has 2 segments:
1. Platform segment
2. Device segment
If you look at the device segment, they are operating at a loss. But once Roku gets you in the ecosystem, the platform gross profit margin is much better. Around 50%. In the latest earnings you can see this. The platform gross profit margin was up 30% YoY.
The device gross profit was negative compared to the year before. What that means is that Roku is willing to take losses in order to get people in their ecosystem. And the the profits go up as people spend money and time on the platform.
Now another interesting thing is the decrease in operating expenses. This decreased 28%. So they increased their revenue and decreased their expenses. Also the loss from operations decreased by 90% YoY. That is impressive!!
๐ง๐ต๐ฟ๐ฒ๐ฎ๐๐ต๐
Now the most notable threath is the competition. The company $TTD (Trade Desk Inc) is developing a TV operating system, coming out soon. It remains to be seen how good that system is and if it can take market share.
๐๐๐ ๐ฏ๐ฒ๐ณ๐ผ๐ฟ๐ฒ ๐ฒ๐ฎ๐ฟ๐ป๐ถ๐ป๐ด๐:
We already know that Roku reached the 90 million streaming households milestone, but we do not know the rest of the numbers. Of they continue with the same growth it is likely to be good as well.
So do I think itโs a buy? Yes!
But I advice two things:
๐ญ. Buy 100% before earnings (highest risk)
๐ฎ. Buy 50% before earnings and 50% after earnings (to lower risk)
The second option is ofcourse the safest. At this point I do not have Roku in my portfolio, but I am planning on buying.
Please follow for more of these posts. Currently up +12,5% ๐ข
$DIS (Walt Disney)$NFLX (Netflix, Inc.)... Show More
Nice! I'm patiently waiting on earnings! :) ... Show More
.
We use our own and third-party cookies on our websites to enhance your experience, analyze traffic, and for security and marketing. For more info, see our Cookie Policy or go to Manage Settings.
Privacy Preference Center
When you visit any website, it may store or retrieve information on your browser, mostly in the form of cookies. This information might be about you, your preferences or your device and is mostly used to make the site work as you expect it to. The information does not usually directly identify you, but it can give you a more personalized web experience. Because we respect your right to privacy, you can choose not to allow some types of cookies. Click on the different category headings to find out more and change our default settings. However, blocking some types of cookies may impact your experience of the site and the services we are able to offer.
More information
Manage Consent Preferences
Strictly Necessary Cookies
Always Active
These cookies are necessary for the website to function and cannot be switched off in our systems. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms. You can set your browser to block or alert you about these cookies, but some parts of the site will not then work. These cookies do not store any personally identifiable information.
Performance Cookies
These cookies allow us to count visits and traffic sources so we can measure and improve the performance of our site. They help us to know which pages are the most and least popular and see how visitors move around the site. All information these cookies collect is aggregated and therefore anonymous. If you do not allow these cookies we will not know when you have visited our site, and will not be able to monitor its performance.
Functional Cookies
These cookies enable the website to provide enhanced functionality and personalisation. They may be set by us or by third party providers whose services we have added to our pages. If you do not allow these cookies then some or all of these services may not function properly.
Targeting Cookies
These cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.
Cookie List
label
ConsentLeg.Interest
label
label
label
Sat Dec 13 2025 19:41:12 GMT+0000 (Coordinated Universal Time)
