UpstateAg said:

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Would you go after calls before close today on either for next week? Maybe 50 for ROKU?

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Quote:

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Roku finds defenders as stock plunges toward worst day on record
12:59 pm ET November 8, 2018 (MarketWatch)

By Emily Bary

Analysts aren't concerned by disappointing third-quarter platform metrics

Shares of Roku Inc. were on track Thursday for their largest single-day percentage drop since the company went public after it missed expectations on a few key financial metrics, but analysts are as upbeat as ever about the company's prospects.

Roku (ROKU) on Wednesday beat top- and bottom-line estimates (http://www.marketwatch.com/story/roku-stock-plunges-after-earnings-beat-weak-profit-forecast-2018-11-07) with its third-quarter results, though the company's platform revenue of $100.1 million came up about $3 million shy of the FactSet consensus. Roku's platform segment, which includes advertising and licensing revenues, is a fast-growing business that's of keen interest to investors.

The company also reported $4.56 in average revenue per user, which represented a slight deceleration and came as a disappointment to some investors.

Shares are currently down 18.5% in Thursday's session. A drop of more than 17.7% at the close would constitute Roku's worst one-day stock performance. The company has been public since September of 2017.

See also: Square shares dip as earnings beat, but December forecast comes up short (http://www.marketwatch.com/story/square-shares-dip-after-earnings-beat-but-december-forecast-that-comes-up-short-2018-11-07)

Needham analyst Laura Martin defended the stock after earnings, writing that platform revenue was impacted by "lumpy" factors and that the metric doesn't reflect the overall health of Roku's ad business. She also argued that average revenue per user is being affected by the growth of the Roku Channel, a curated, ad-supported hub for content.

The Roku Channel has given Roku greater access to ad inventory, according to Martin, though it's changed the way the company approaches ad revenues. Prior to the Roku Channel's emergence, the company sold ads at a lower cost but kept all of the revenue, she said. Now, Roku has a larger ad inventory and charges more for spots, but shares revenue with the content owner.

This suggests higher overall revenue and earnings before interest, taxes, depreciation, and amortization but lower average revenue per user, Martin said. She rates the stock a buy with an $85 price target (http://www.marketwatch.com/story/roku-stock-gains-after-needham-boosts-target-to-85-2018-10-01).

William Blair analyst Ralph Schackart called Thursday's selloff an "overreaction" given encouraging momentum across Roku's business, and he echoed some of Martin's thoughts regarding chief investor concerns.

"Management indicated that this quarter, video ad sales more than doubled, and have been consistently strong for several quarters," he wrote. "Content distribution, which includes revenue sharing from SVOD [streaming video on demand] and TVOD [TV on demand] purchases on the platform, is a little lumpier due to revenue recognition and grew closer to account growth."

Schackart has an outperform rating on the stock.

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oldarmy1 said:

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They just announced black friday deals. Ok

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Prognightmare said:

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IrishTXAggie is in timeout but he just PM'd me. DBX beat and is moving up in the AH.

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Prognightmare said:

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Very good my friend, but DBX isn't big enough to switch market momentum. I'm in SQ and ROKU, so I hope I'm wrong.

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gougler08 said:

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The Fed just needs to keep its mouth closed

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UpstateAg said:

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I'm ready for some more leaps into 2020 and beyond with JD. China is just getting lower and lower and it's going to go vertical one day..... as CTH says......"soon"

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Seor Chang said:

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SN is down big today, almost 20%.

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Prognightmare said:

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Welcome back my friend.

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UpstateAg said:

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ROKU trying to rebound.

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gougler08 said:

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UpstateAg said:

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ROKU trying to rebound.

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Bounced off that 43.50 line just like in late July/early August...hope it can hold as resistance this time as well

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