Gadget maker Roku's stock soars after IPO raises $219M

Gadget maker Roku's stock soars after IPO raises $219M”

CNBC reported yesterday that Roku's $2 billion stock market value, following its opening-day pop, gives the company a price-to-sales ratio of 5.2, according to FactSet, marking a big premium over out-of-favour hardware companies FitBit and GoPro.

On Thursday, over-the-top (OTT) TV set-top-box maker Roku witnessed almost a 70% gain from its $14 opening price. Statista reported earlier in September that Roku's household penetration in the almost three times that of some competitors like Apple Inc (NASDAQ: AAPL)'s Apple TV and 2 percent higher than Amazon's streaming stick. With its software, Roku is trying to get into the more lucrative advertising business.

"When we sign up a customer to a subscription service or Hulu or Netflix, we get a revenue share as well", Wood said. In 2016, Roku said it had $400 million in revenue.

Other market commentators were left stupefied by what exactly investors see in the company, a platform that enables users to stream content directly to their televisions.

Those numbers, however, have not translated into profitability as the company pumps cash into marketing and R&D. In the quarter ended June 30, the company posted a net loss of $15.5 million, deeper than its $14.1 million loss in the year-ago quarter.

Roku's shareholders include Menlo Ventures, Fidelity and Rupert Murdoch's Twenty-First Century Fox.

Shares of Roku, an early player in streaming-video gadgets, soared Thursday after its initial public offering of stock raised $219 million.

Like this


29 September 2017
Analyzing today's market share for - International, Ltd. (NASDAQ:CTRP)
Highstreet Asset Management bought a new stake in stocks of worldwide through out the Fiscal Q2 worth at about $121,000. The stock of Ctrip.Com International Ltd (ADR) (NASDAQ: CTRP ) earned "Outperform" rating by Oppenheimer on Wednesday, August 5.

29 September 2017
Nebraska Supreme Court dismisses appeal, liquor stores will remain closed
The Nebraska Supreme Court delivered a victory Friday to those opposed to beer sales in the border town of Whiteclay, Nebraska. Still, the stores were forced to remain closed as the case went before the state Supreme Court.

29 September 2017
India's fiscal deficit reaches 96% of full-year target in August
Garg told reporters that the Rs25,000 crore capital expenditure will be over and above the Rs3.85 trillion budgeted for 2017-18. The revenue deficit during the period under review was over Rs 4.30 lakh crore, or 133.9 per cent, of the estimates.

29 September 2017
'Big decisions' needed on rebuilding Puerto Rico, says Donald Trump
Maria, the most powerful storm to hit Puerto Rico in almost 90 years, has killed at least 16 people on the island and more than 30 across the Caribbean.

29 September 2017
Patriots fans burn team gear over National Football League kneeling protests
The American Civil Liberties Union of Rhode Island weighed in Wednesday, asserting that both the Patriots players and Shane have the first amendment right to protest.

29 September 2017
Ariel Winter's Mom Accuses 'Modern Family' Star Of Reigniting Feud For Attention
Workman said Winter is making up information for attention and "headlines". Workman's relationship with her daughter has been strained for years.

29 September 2017
Nevada's first month of pot sales nets US$3.7 million taxes
The state reeled in $2.71 million from the 10% tax tacked on to the sale of all recreational marijuana sales at the register. The state has also pulled in $6.5 million for marijuana license and application fees.

29 September 2017
Celebs share embarrassing photos for hurricane fundraiser
Everyone knows that Puerto Rico is now in a bad situation after being decimated by a hurricane. Stephen Colbert is taking social media throwbacks to a whole new level.

29 September 2017
Lynda Carter fires back at James Cameron over 'Wonder Woman' comments
James Cameron added that the " Terminator " hero was not treated an objectified icon , unlike Gal Gadot's character. However, instead of backing down, Cameron said he stands by his beliefs.

29 September 2017
Bed Bugs Love to Travel in Your Dirty Clothes, Science Finds
Previous research has noted physiological and behavioral changes in bed bugs when they're near a breathing human. A new research reveals bed bugs's preference for dirty laundry .