The information provided in this article is for general reference only and does not constitute any personalized investment solicitation or advice. The author does not hold the mentioned stocks.
From Roku ( $Roku Inc (ROKU.US)$) since its IPO in September 2017, its stock price has increased 30 times. This streaming media device and platform company went public at $14 per share, with an opening price of $15.78. Now, the stock is trading around $420. With such significant gains, some investors may wonder if it is too late to buy Roku now.
In my view, investors should consider buying this stock for three very good reasons, but there is also a convincing reason to be cautious.
1. Impressive growth in Roku's user base and revenue
When Roku went public, skeptics warned that the company's streaming media hardware would face fierce competition from Amazon Fire TV, Apple TV, Google Chromecast by Alphabet, and other incumbents and new entrants.
However, since the IPO, Roku's rapid growth in active accounts, average revenue per user (ARPU), and total revenue has quickly silenced the naysayers.
As people are mostly staying at home and seeking entertainment such as streaming content, Roku's growth has accelerated throughout the entire pandemic. But even as the situation in the USA is returning to pre-2020 normal levels, analysts still expect the company's revenue...