Why Investors Should Consider Buying Roku Stock Now
1. Strong and improving user metrics
Roku demonstrated resilience during the economic downturn, reporting a 14% year-over-year revenue increase. The company added 10 million active accounts, reaching 80 million total, and saw viewing hours increase to 29.1 billion hours.
2. Market-leading scale
Roku holds a significant share in the connected TV advertising market in North America and Latin America. The company's focus on being the premier streaming delivery medium positions it well to benefit from the trend of viewers abandoning cable.
3. Digital advertising recovery
Roku is poised to benefit from the resurgence of digital advertising, particularly in programmatic ad spending, which is expected to grow significantly. With a focus on CTV advertising, Roku stands to profit as the leading provider in the U.S.
Bonus reason: A bargain-basement price
Roku stock is currently trading at a low valuation of 2 times forward sales estimates, presenting an opportunity for investors looking for undervalued stocks.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.