The Ark Invest founder Cathie Woodremains firm in its investment in Roku-A making a new purchase of 81,327 shares valued at 4.4 million dollars on June 21 for its Ark Innovation fund according to Dan Weil in The Street.
Roku reported that its Net loss in the first quarter narrowed to $50.9 million, or $0.35 per share, from $193.6 million, or $1.38 per share, in the year-ago quarter. The Revenue increased 19% year-over-year to $882 million.
“Roku had a very good first quarter, with impressive user engagement driving a strong revenue growth and Ebitda that is performing better than our full-year forecast“wrote the Morningstar analyst Matthew Dolgin.
But that hasn’t stopped the stock from falling 40% so far this year, to $54.65. Dolgin places the fair value at 50 dollars.
Dolgin sees a fundamental problem in Roku’s business model: “Your strategy is to continue being a leading provider of streaming devices by keeping prices low and accepting losses in its device segment“.
“His intention is generate profits from Roku user accounts. Are skeptical that this is a viable strategy because we do not see competitive advantages that can make the company make enough profits after a history of generating losses,” Dolgin added.
Wood obviously thinks differently. on Roku. It represents the third-largest stake in Ark Innovation, valued at $485.8 million at close of June 24.
On Roku-A, the 70-period moving average remains above the latest candles, RSI up at 44 points and MACD lines below the zero level.
Medium-term resistance is at $66.55. Meanwhile, Ei indicators are mixed.
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