is Roku stock a good investment?
7/12/2024 03:30pm
**Roku stock does not appear to be a good investment at this time**, and there are several reasons for this conclusion:
1. **Financial Performance**: Roku's financials show a net loss of $50.86 million and a negative diluted EPS of $-0.35 for the quarter ending March 31, 2024. The company's net income year-on-year growth rate is 73.73%, which is quite high, but it is important to note that it is based on a small base and may not be indicative of future performance.
|Ticker|Name|Total Revenue|Net Income|Diluted EPS|Date|code|market_code|
|---|---|---|---|---|---|---|---|
|ROKU.O|Roku|8.81469E8|-5.0855E7|-0.35|2024 Q1|ROKU|185|
|Ticker|Name|Net Income year-on-year growth rate|Total Revenue year-on-year growth rate|Diluted EPS QoQ growth rate|Date|code|market_code|
|---|---|---|---|---|---|---|---|
|ROKU.O|Roku|73.73246420528503|18.958285536916826||20240331|ROKU|185|
2. **Valuation Metrics**: Roku's P/E ratio is -15.43, which is negative and suggests that the company is not profitable as currently constituted. The price-to-sales ratio of 2.48 and price-to-book ratio of 3.71 are also high, indicating that the stock may be overvalued relative to its sales and book value.
3. **Technical Indicators**: The stock's 5-day, 10-day, and 20-day moving averages are 61.65, 61.35, and 57.97, respectively. The fact that the shorter-term moving averages are above the longer-term averages can sometimes indicate a bearish trend.