Roku is set to go public this week in one of the most highly anticipated IPOs of 2017. However, before investors dive in head first, memories of disastrous 2017 IPOs Snap Inc SNAP 2.03% and Blue Apron Holdings Inc APRN 1.74% have them taking a closer look at Roku and exactly what they will be getting themselves into.
Roku’s S1 filing reveals that the video and audio streaming device company currently has 15.1 million active accounts, up 43 percent from a year ago. Roku is averaging $11.22 in annual revenue per user, which is also up 35 percent year-over-year. Roku has delivered 11.9 billion total streaming hours in the past 12 months, more than double its 5.5 billion streaming hours in 2015.
Roku is expecting to price its IPO in the $12 to $14 range and raise roughly $220 million. The Wall Street Journal estimates an IPO price in that range would value the company at roughly $1 billion.
According to eMarketer, Roku beat out Alphabet Inc GOOG 0.38% GOOGL 0.32%’s Chromecast, Amazon.com, Inc. AMZN 0.38%’s Fire TV and Apple Inc. AAPL 0.17%’s Apple TV in terms of total users in the month of July. Roughly 39 million people used a Roku device at least once during the month compared to 37 million who used Chromecast, 36 million who used Fire TV and 21 million who used Apple TV.
U.S. household penetration data reveals similar market share numbers. According to Statista, Roku’s U.S. penetration rate is 16 percent of households, better than Fire TV (14 percent), Chromecast (8 percent) and Apple TV (6 percent).
One thing long-term investors will want to watch closely is…
Click here to continue reading
Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!
