Not a great year for the FAANG stocks is it?
Facebook (FB) is changing its name, Apple (AAPL) is barely beating market expectations, Amazon (AMZN) has issues due to the supply chain crisis, Netflix (NFLX) is getting battered by the competition and Google (GOOG), well, Google isn’t doing too badly…
But the others are not having the best 2021 – and some of us, I’m sure – can relate.
However, of the FAANG stocks – Netflix has been taking a beating – as competition from Disney (DIS), Amazon’s Prime, Hulu and others – has brought this once high-growth tech stock into the realm of the Blue Chippers…
Which isn’t exactly a bad thing – but it ain’t ideal either.
That said, Netflix just got some more recent news that may have left management scratching its heads – looking for an answer.
Roku (ROKU) recently announced its earnings – and while its numbers were GREAT for Roku – it’s just something else that Netflix has to deal with.
And you have to wonder…
What is Roku doing so right?
Now, we all know that streaming is HUGE – as there’s barely a household without some kind of streaming service set up inside…
It’s becoming so popular – that many more and more families are getting rid of classic cable – and going strictly online for their home entertainment needs.
And while there are plenty of choice out there…
A lot of households are turning to Roku for their streaming needs.
How do we know this?
Well, because Roku when reported its earnings last week, it should have been a HUGE win for the company…
But this is 2021 – and weird things are happening.
After reporting its quarterly earnings and beating expectations – the company raised its guidance for next quarter…
And then watched as their stock seemed to get flushed and go swirling as many investors decided that NOW was the best time to take their profits.
Roku delivered impressive numbers – mostly beating analysts’ targets – but the stock still dropped like a rock due to the inconceivable power of a little greed.
Honestly, it makes no sense…
Shares should have shot UP on the numbers that were reported – but that’s not what happened.
Get this, Roku’s revenue JUMPED 51% year-over-year to reach $680 million – coming in just under the Street’s target of $683.4 million…
But earnings, on the other hand, came in at $0.48 per share and obliterated estimates for $0.06 per share – that’s an 800% gain.
Roku users are using the service too as streaming hours were up 21% year-over-year – some of that is obviously due to the pandemic…
But right now, Roku users are streaming an average of 3.5 hours of content on a daily basis!
Which means ROKU gets to take advantage of all of those hours of streaming by monetizing its advertising…
But Roku is just not growing fast enough for analysts liking – because even though its active base is a whopping 56.4 million subscribers – the 1.3 million it added to its base this quarter represents a slowdown…
As analysts wanted to see Roku hit 56.7 million active accounts – because they do not understand that there aren’t an unlimited number of subscribers for some reason.
All this good news, and ROKU shares were STILL down as much as 9% after the report – until some investors came to their senses and realized what a steal Roku was at that lowered price.
Roku now expects fourth-quarter revenue will come in at $893 million — a whole 37% jump from the year prior – but again, that’s not enough for Wall Street – where analysts think Roku is coming in short and wants it to hit $948.5 million in revenue next quarter.
Are they crazy?
Are they trying to set the company up for failure?
Either way, while this news is actually GOOD for Roku – it’s one of those reports that you know Netflix just didn’t want to hear.
Roku’s come up may be the nail in Netflix’s proverbial high-growth coffin – as Roku gains and more and more grown on the undisputed leader.
This is one of those weird events that turn investors off…
Which is why GorillaTrades exists in the first place – our trading matrix wouldn’t have worried about the quick profit-taking – we’d have been able to look at the data and told our subscribers to stay the course.
That’s the beauty of the GT service…
Emotional sell-offs won’t register on our radar enough to make follow suit – especially when the data is there to support the stock reaching new heights.
We’d love to show you how it works – but, as with many things of this nature – you have to be on the inside to get a real feel of it…
Which is why I’m asking you to subscribe today.
Of course, we understand if you’d rather blaze your own path – but wanted to extend the invitation to you regardless.
Either way – do yourself a favor and take a good look at Roku…
It could replace Netflix in your own portfolio!
“If some mystical occurrences happen to us, don’t we “normally” and fearfully prefer to call them strange coincidences? Or try to persuade ourselves it was only an indication of our overactive imagination? Aren’t we “normally” closing our eyes and ears, refusing to face the truth?” — Sahara Sanders
Not a great year for the FAANG stocks is it?
Facebook (FB) is changing its name, Apple (AAPL) is barely beating market expectations, Amazon (AMZN) has issues due to the supply chain crisis, Netflix (NFLX) is getting battered by the competition and Google (GOOG), well, Google isn’t doing too badly…
But the others are not having the best 2021 – and some of us, I’m sure – can relate.
However, of the FAANG stocks – Netflix has been taking a beating – as competition from Disney (DIS), Amazon’s Prime, Hulu and others – has brought this once high-growth tech stock into the realm of the Blue Chippers…
Which isn’t exactly a bad thing – but it ain’t ideal either.
That said, Netflix just got some more recent news that may have left management scratching its heads – looking for an answer.
Roku (ROKU) recently announced its earnings – and while its numbers were GREAT for Roku – it’s just something else that Netflix has to deal with.
And you have to wonder…
What is Roku doing so right?
Now, we all know that streaming is HUGE – as there’s barely a household without some kind of streaming service set up inside…
It’s becoming so popular – that many more and more families are getting rid of classic cable – and going strictly online for their home entertainment needs.
And while there are plenty of choice out there…
A lot of households are turning to Roku for their streaming needs.
How do we know this?
Well, because Roku when reported its earnings last week, it should have been a HUGE win for the company…
But this is 2021 – and weird things are happening.
After reporting its quarterly earnings and beating expectations – the company raised its guidance for next quarter…
And then watched as their stock seemed to get flushed and go swirling as many investors decided that NOW was the best time to take their profits.
Roku delivered impressive numbers – mostly beating analysts’ targets – but the stock still dropped like a rock due to the inconceivable power of a little greed.
Honestly, it makes no sense…
Shares should have shot UP on the numbers that were reported – but that’s not what happened.
Get this, Roku’s revenue JUMPED 51% year-over-year to reach $680 million – coming in just under the Street’s target of $683.4 million…
But earnings, on the other hand, came in at $0.48 per share and obliterated estimates for $0.06 per share – that’s an 800% gain.
Roku users are using the service too as streaming hours were up 21% year-over-year – some of that is obviously due to the pandemic…
But right now, Roku users are streaming an average of 3.5 hours of content on a daily basis!
Which means ROKU gets to take advantage of all of those hours of streaming by monetizing its advertising…
But Roku is just not growing fast enough for analysts liking – because even though its active base is a whopping 56.4 million subscribers – the 1.3 million it added to its base this quarter represents a slowdown…
As analysts wanted to see Roku hit 56.7 million active accounts – because they do not understand that there aren’t an unlimited number of subscribers for some reason.
All this good news, and ROKU shares were STILL down as much as 9% after the report – until some investors came to their senses and realized what a steal Roku was at that lowered price.
Roku now expects fourth-quarter revenue will come in at $893 million — a whole 37% jump from the year prior – but again, that’s not enough for Wall Street – where analysts think Roku is coming in short and wants it to hit $948.5 million in revenue next quarter.
Are they crazy?
Are they trying to set the company up for failure?
Either way, while this news is actually GOOD for Roku – it’s one of those reports that you know Netflix just didn’t want to hear.
Roku’s come up may be the nail in Netflix’s proverbial high-growth coffin – as Roku gains and more and more grown on the undisputed leader.
This is one of those weird events that turn investors off…
Which is why GorillaTrades exists in the first place – our trading matrix wouldn’t have worried about the quick profit-taking – we’d have been able to look at the data and told our subscribers to stay the course.
That’s the beauty of the GT service…
Emotional sell-offs won’t register on our radar enough to make follow suit – especially when the data is there to support the stock reaching new heights.
We’d love to show you how it works – but, as with many things of this nature – you have to be on the inside to get a real feel of it…
Which is why I’m asking you to subscribe today.
Of course, we understand if you’d rather blaze your own path – but wanted to extend the invitation to you regardless.
Either way – do yourself a favor and take a good look at Roku…
It could replace Netflix in your own portfolio!
“If some mystical occurrences happen to us, don’t we “normally” and fearfully prefer to call them strange coincidences? Or try to persuade ourselves it was only an indication of our overactive imagination? Aren’t we “normally” closing our eyes and ears, refusing to face the truth?” — Sahara Sanders
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