Is Roku The Next Microsoft???

On Wednesday, Roku reported their first quarter earnings. Although net loss of $9.7 million, or 9 cents a share, revenue rose to $207 million from $137 million a year earlier ago.  Also, active-account base grew by 2 million users sequentially, reaching 29.1 million in the first quarter.  And for the full year, Roku forecast $1.03 billion to $1.05 billion in revenue, slightly ahead of expectations.

This opportunity in the large streaming trend makes ROKU a great position to increase its number of users, the analysts said. As a result of its leadership in the sector, ROKU shares could soar three to five times over the next three to five years.

ROKU got its start in streaming hardware, with a “stick” that would allow users to access their streaming services. Now, “smart-TVs” are on the rise with services like Netflix (NFLX) already built in.

But ROKU has become a leader in smart-TV software, allowing the company to take advantage of this trend as well. ROKU will benefit even more from the shift to smart-TVs, especially as services like NFLX, Amazon Prime (AMZN), and Disney+ (DIS) battle to get their streaming services in front of as many eyes as possible. No matter which streaming service comes out on top, ROKU should benefit.

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Microsoft licenses its operating systems to manufacturers of computers back in the day.  Today, the name Microsoft is synonymous with PCs and laptops. 

Roku estimates that more than a third of all smart TVs sold in the U.S. during the quarter had Roku’s operating system built in and whenever TV watcher uses its streaming service and watches ad-supported programming, they get a check. So will Roku be the next Microsoft? We shall see, in the meantime,where is the stock price heading next, lets go to the charts?

On the news, price broke through the daily supply and is now at all-time highs.

Thus, based on previous measured move, price could reach $100 by Oct.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.