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Is Roku Stock a Buy Following the Streaming Platform’s Third-Quarter Report?
For many people, the streaming video platform Roku (ROKU) is the gateway to internet television. Investors have taken notice of its pivotal role, particularly when the number of individuals who needed its services increased during the Covid-19 epidemic. Is Roku stock, however, a good investment right now?
The San Jose, California-based firm began as a division of Netflix (NFLX), producing the company’s first set-top box. Netflix, on the other hand, opted to be hardware neutral and sold the company in 2007.
Roku continued to make set-top boxes and introduced streaming sticks after the sale, allowing customers to access internet video services like Netflix, Hulu, and Amazon (AMZN) Prime Video. Manufacturers of smart TVs were later granted licenses to use its operating system.
Roku now makes the majority of its money through advertising on its platform, which includes promotions for ad-supported services like its own Roku Channel. It also gets a cut of income from third-party services sold on its platform, including pay-per-view and subscription fees. Roku stock is linked to the transfer of television ad money from traditional broadcast and cable services to streaming services.
