Josh Kohn-Lindquist's avatar
$8.4m follower assets
Two Reasons I Really Like $ROKU
I took a look at two stats that jumped off of Roku's Q1 shareholder letter, which reinforced my long-term investment thesis in the company.


First, the ten largest advertising customers spent 80% more on Roku YoY.

Second, Roku retained 96% of advertisers spending $1M+ on their platform and saw a 50% sales increase among returning customers.

Whether placing ads on The Roku Channel or shopping for them to put it in an ad-supported streaming service, Roku has positioned itself beautifully in this niche.

Through its content distribution business (putting streamer services apps on the Roku platform), the company already has strong ties with these customers and should be able to continue deepening these relationships.

As long as Roku doesn't overspend on content creation for its Roku Channel, I feel that its platform and its unique flywheel create a great opportunity over the long haul.
Will Roku beat the S&P 500 over the next decade?
74%Of course
25%No way
0%Who is Roku?
31 VotesPoll ended on: 05/21/22
ROKU is underrated 😎. Very strong numbers in these times
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Nathan Worden's avatar
$312.8m follower assets
Roku stock pitch by Neil (Couch Investor)
@couch_investor gave a great pitch on Roku which you can watch HERE
Or read the pitch below ⤵

$ROKU is the gatekeeper to the streaming world and is also a play in the ad revolution and not just the streaming wars.

So how does it make money?

There is platform revenue and play revenue.

Platform revenue is everything on the Roku operating system. Whether it's advertisements, content, distribution, every placement of the streaming giants costs money. Netflix is the first thing you see there. They paid for that. Or the advertising— if there is some new movies and that's on the front page, whether it's for Disney for Netflix, doesn't matter. That's how Roku makes money.

Play revenue: why is it down 19%?

Well supply chain issues, not a lot of people want to buy new TVs, new sticks, new remotes, etc. And they're also taking a hit themselves rather than making it more expensive for their customers, people might actually buy it instead of more expensive ones, which also one of the ways that they're gaining market share.

Now the platform revenue, that's actually up 39% year over year. So that's quite nice. And then the Roku flywheel: Roku channel is free to view, but it's an ad supported channel. So how does it work? There's content on there, lots of engagement, more audience, which would bring more advertisers, more money to create more content.

And the flywheel goes round and round.

Now, like I said, there is an advertising play here as well. Basically, you're watching a football game on cable. You don't see an ad there, but then you go and stream a movie on the Roku channel. Suddenly you see an ad there.

It also works across device where you can see something on mobile, then go on your laptop. Then you actually make your purchase on that laptop as well. And then the last step: something that will be repeated by advertisers is optimizing the campaign so that you spend the same amount of money, but have a better results.

Nice for the market-share the share of big screen. As you can see here, I know we've heard for the last couple of months, years, or something that Roku might be losing market share, but actually not that much, to be honest.

The reach for TV streaming surpassed legacy TV and paid TV in the United States for the first time. Expect this to rise in the future as well.

Then a couple of bearish points:

1) Can Roku replicate its US success worldwide?

2) The competition, and then

3) Supply chain issues.
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6 Additions for This Week
Through my regular dollar-cost averaging in my $HOOD account on Monday and my Stash account Thursday, I added to the following stocks: $TTD, $SHOP, $MELI, $U, $UPST, and $SE.

These may be my single highest conviction stocks and make up a portion of my core 34 holdings.

Trade Desk will benefit from the steady shift to connected TV, alongside $ROKU.

Shopify, MercadoLibre, and Sea are fascinating at these prices and offer increasingly strong optionality as time goes on, it seems -- not to mention they dominate their niches already.

Unity faced a significant issue regarding its advertising, but it appears to be a one-off event. I cannot like this company's optionality more.

Upstart's sell-off completely confuses me. While risks remain, the risk/reward potential for the company has become far too interesting.

tl:dr

These are six great businesses with high growth optionality for the long term, now trading at significant discounts.

I am also planning to add to one of my "higher-risk" core holdings Monday -- who would you all pick?
Which riskier stock should I buy Monday?
12%$TDOC
32%$SOFI
8%$GLBE
48%$RBLX
25 VotesPoll ended on: 05/16/22
@joryko what a great list you have here. I’ve purely been technicals, but want to add fundamentals into my game. Any suggestions on good reading material to start off? Thanks.
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Neil's avatar
$18.2m follower assets
Streaming wars
The more the merrier for the likes of $ROKU and $TTD

Ad supported tiers will be a common thing across all big streaming giants and these two will benefit from it greatly (so will the consumer).
I'm curious to see how the allocation of spending will break out between these two same companies.

Like $NFLX, for example, already has historical ties to $ROKU, but $TTD seems like quite a force in the CTV space of late as well.

Does Roku's ties to the streaming industry give it a leg up, or does Trade Desk's massive customer base make it more interesting?
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Samuel Meciar's avatar
$7.7m follower assets
Portfolio changes - update 2
Let's get things started tomorrow!

I made a decision today, I'll be selling my $NFLX and $DIS shares tomorrow, and let me explain my rationale behind this:

I bought both to catch the inevitable transition towards streaming space. The space is very tough, capital intensive and competitive since it's by a large part based on the top hits. No doubt both Netflix and Disney will play a significant role there.

BUT - I decided to consolidate to 2 of my other holdings because I see them as a better R/R at this point:

$ROKU due to its huge market lead in connected TV, streaming agnostic so they win no matter which streaming service really succeeds. The more streaming, the better for them.

$TTD is a phenomenal company on its own, but as many services go for ad-supported tiers, Trade Desk is one of the best players to provide ads to those services in case they don't want to build up their proprietary tech for that.

Netflix CEO said that they'd rather look for outsourcing of that as opposed to in-house development and chances are TTD will be the chosen player for Netflix's ad-supported tiers. $DIS already partnered with TTD for Disney Channel and would expect them to do same for Disney+.

I hope you understand. Share your thoughts below!
Samuel Meciar's avatar
$7.7m follower assets
Brief news 4/5/22
$AMD reported earnings, here visualized:

$ABNB reported earnings, here visualized:

Airbnb's CEO Brian Chesky also announced a large event coming in a week on May 11 where the company should unveil the largest changes to the platform in a decade.

$AFRM to become a first BNPL partner fully integrated to Carat operating system from enterprise payment provider $FISV.

$COIN opened up their NFT Marketplace to everyone.

$CRM ranked as #1 CRM provider by IDC for 9th year in a row.

$DOCU hires Steve Shute, a former SAP leader with over 25 years of experience to help DocuSign scale beyond e-signatures; grow Agreement Cloud.

$PATH announced integration with $CRM's MuleSoft.

$PLTR won a $90m 5-year contract with HHS.

$ROKU announced new shoppable ad experiences in OneView, new collaboration with $MSFT + new Roku Originals and Roku Brand Studio programs.

$S completed an acquisition of Attivo Networks, a leading identity security provider.

$SQ and $RAD partnered to provide Afterpay's BNPL for everyday items.
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Nathan Worden's avatar
$312.8m follower assets
'The Market' Stock Pitching Game is Friday, May 13th @ 12:00pm EST
"The Market" stock pitching game is a bracket-style elimination tournament for investors.

Six brave contestants will each give a three minute pitch on an investment idea.
Quality discussion ensues—
The audience decides the best pitch of the day!

Here's an example of the kind of discussion that goes down at the game: VIDEO

Sign up to get the Zoom link for the Friday, May 13th game HERE

Here's the awesome lineup!:

Leandro @invesquotes
Adyen $ADYEY

Green Candle @greencandleit
Block $SQ

Bastiaan @picolinie
Topicus OTCMKTS: $TOITF, CVE: $TOI

Nikki Dunn @shetalksfinance
Pinterist $PINS

Yonathan Daniel @y4l.investing
Greenland Resources

Neil Couch Investor @couch_investor
Roku $ROKU

What is the best investment idea of the month? The Market will decide!
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