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Roku (ROKU) Records More Than 70 Million Active Accounts Globally
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Roku (ROKU - Free Report) recently reported that the number of its global active accounts has surpassed 70 million as of January 2023 and created a milestone for the company.
The streaming hours for the full year 2022 were recorded at 87.4 billion, which was 19% up year over year. This helps Roku retain its number-one position in streaming platforms in the United States, Canada and Mexico.
Roku has immensely benefitted from the ongoing cord-cutting as consumers are shifting their preference to TV streaming. Per Zippia, the estimated cord cutters in America in 2022 have been around 4.9 million. For the first time in 2022, time spent on streaming had surpassed cable, according to Nielsen.
It is also expected that cable TV subscribers could fall from 71 million in 2020 to 56 million in 2025. This provides a wide opportunity for streaming platforms like Roku.
Roku to Gain From Its Streaming Content
Besides cord cutting, there are other parameters that could further aid growth at Roku. Being a streaming operating system, Roku is home to top OTT platforms like Netflix (NFLX - Free Report) and Walt Disney (DIS - Free Report) . Both these companies have launched their advertising video-on-demand model recently. This makes Netflix and Disney+ available to users at a decreased price and is expected to gain traction.
The growing userbase for Netflix and Disney would also increase engagement at Roku’s operating system and thus could further boost its top line.
In addition to this, Roku is also enhancing its own content library on the Roku Channel, which witnessed 90% year-over-year growth in streaming hours in third-quarter fiscal 2022.
The Roku Channel recently sealed a one-year deal to be the official English language home channel for the Miss Universe beauty pageant, which will start streaming live from New Orleans on Jan 14.
The Roku Channel has also added two renowned film trilogies, Ice Cube’s comedy series Barbershop whose first movie made a whopping $77 million at the box office in 2002, and Kate Beckinsale’s action horror Underworld series.
Despite the exciting expansion of content on the Roku Channel, the company has been facing curtailed spending by advertisers due to macroeconomic factors such as high inflation and interest rates. It is expected that this threat will persist in the upcoming quarters as well and since the Roku channel’s revenues are solely dependent on ads, it might hurt its top line.
Shares of Roku have declined 78% in the last year compared with the Zacks Consumer Discretionary sector, which fell 31.9% in the same period.
A better-ranked stock in the same sector is Liberty Media (FWONK - Free Report) sporting a Zacks Rank #1 (Strong Buy).
Liberty Media’s share price decreased 2.6% year over year. The Zacks Consensus Estimate for earnings is pegged at 10 cents, which has moved up by 42% over the past 30 days.
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Roku (ROKU) Records More Than 70 Million Active Accounts Globally
Roku (ROKU - Free Report) recently reported that the number of its global active accounts has surpassed 70 million as of January 2023 and created a milestone for the company.
The streaming hours for the full year 2022 were recorded at 87.4 billion, which was 19% up year over year. This helps Roku retain its number-one position in streaming platforms in the United States, Canada and Mexico.
Roku has immensely benefitted from the ongoing cord-cutting as consumers are shifting their preference to TV streaming. Per Zippia, the estimated cord cutters in America in 2022 have been around 4.9 million. For the first time in 2022, time spent on streaming had surpassed cable, according to Nielsen.
It is also expected that cable TV subscribers could fall from 71 million in 2020 to 56 million in 2025. This provides a wide opportunity for streaming platforms like Roku.
Roku to Gain From Its Streaming Content
Besides cord cutting, there are other parameters that could further aid growth at Roku. Being a streaming operating system, Roku is home to top OTT platforms like Netflix (NFLX - Free Report) and Walt Disney (DIS - Free Report) . Both these companies have launched their advertising video-on-demand model recently. This makes Netflix and Disney+ available to users at a decreased price and is expected to gain traction.
The growing userbase for Netflix and Disney would also increase engagement at Roku’s operating system and thus could further boost its top line.
Roku, Inc. Price and Consensus
Roku, Inc. price-consensus-chart | Roku, Inc. Quote
In addition to this, Roku is also enhancing its own content library on the Roku Channel, which witnessed 90% year-over-year growth in streaming hours in third-quarter fiscal 2022.
The Roku Channel recently sealed a one-year deal to be the official English language home channel for the Miss Universe beauty pageant, which will start streaming live from New Orleans on Jan 14.
The Roku Channel has also added two renowned film trilogies, Ice Cube’s comedy series Barbershop whose first movie made a whopping $77 million at the box office in 2002, and Kate Beckinsale’s action horror Underworld series.
Despite the exciting expansion of content on the Roku Channel, the company has been facing curtailed spending by advertisers due to macroeconomic factors such as high inflation and interest rates. It is expected that this threat will persist in the upcoming quarters as well and since the Roku channel’s revenues are solely dependent on ads, it might hurt its top line.
Shares of Roku have declined 78% in the last year compared with the Zacks Consumer Discretionary sector, which fell 31.9% in the same period.
Zacks Rank & Stock to Consider
Roku currently has a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A better-ranked stock in the same sector is Liberty Media (FWONK - Free Report) sporting a Zacks Rank #1 (Strong Buy).
Liberty Media’s share price decreased 2.6% year over year. The Zacks Consensus Estimate for earnings is pegged at 10 cents, which has moved up by 42% over the past 30 days.