Even with the recent decline of Roku stock price, the shares are still not cheap, as they have a trailing price-sales multiple of 10.75. But then again, Roku stock deserves a premium, given the company’s growth rate and its dominance of its industry. According to Parks Associates, ROKU has about 37% of the streaming media player market, versus Amazon.com’s (NASDAQ:AMZN) 28% and Apple’s (NASDAQ:AAPL) 15%. Keep in mind that the market is expected to double by 2022.

From the article "Has the Pullback of Roku Stock Created an Opportunity?" by Tom Taulli.

Previous: Streaming TV Is Alphabet’s ‘One That Got Away’

Be the first to leave a comment.

Have a comment? Login or create an account to start a discussion.