I know some of you

    Posted by jdaswani on 28th of Jul 2020 at 02:40 pm

    I know some of you play ROKU - Off Briefing 



    ROKU

    Roku: Rising tensions with content publishers highlight potential risks for long term earnings power -- Morgan Stanley  (152.40 -3.57)

    Analyst Benjamin Swinburne said, "We continue to believe Roku's valuation embeds a level of earnings that will be difficult to achieve unless it reaches a substantially greater level of scale and market share. At a $20bn EV and ~25x our '21E gross profits, we believe the market is already pricing in global success and largely ignoring rising risks. The key debate for Roku shares at these levels is not, in our view, whether the consumer and advertisers are shifting to streaming - they are. Rather, it is Roku's ability to monetize this shift as a platform connecting consumers (audience) with content (publishers). This ability hinges primarily on its ability to drive scale, which it can translate into leverage. The larger its user base and market share of connected TV consumption, the greater leverage ithas over publishers in extracting an economic rent. Similarly, the greater share of streaming advertising inventory it can sell, the more effectively it can monetize."

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