Warner Bros. Discovery WBD announced that the HBO Original three-part documentary series, SAVIOR COMPLEX, is set to debut on Sep 26.The first episode of the docuseries will be available on Sep 26 at 9 p.m. ET/PT on HBO, followed b
Walt Disney (DIS ), the world’s largest entertainment company, fell to a 3-1/2 year low today as the company struggles to overcome numerous headwinds. Disney is facing (1) losses in its online video businesses, (2) the negative impact of the Hollywood actors and writers strikes, and (3) a fee dispute...
Since the dawn of streaming video roughly 15 years ago, the media landscape has undergone a paradigm shift. Viewers are no longer saddled with "appointment" television and movies, having embraced online content delivery. Netflix (NASDAQ: NFLX) is the principal architect of that e
While many tech stocks fell today, Roku (
NASDAQ:ROKU
) stock was a standout – a rare spot of green in a sea of red. While the bulls’ burst of confidence is justified, Roku isn’t a darling of the market. However, I’m bullish on ROKU stock because new cost-reduction plans and an optimistic revenue outlook indicate that Roku’s comeback story is just getting underway.
Headquartered in California, Roku sells equipment and related software to help users stream video and audio content, such as from a Netflix (
NASADQ:NFLX
) subscription.
Although Roku isn’t currently profitable, at least the company is taking specific steps to improve its bottom line. If Roku follows through with reduced expenditures and enhanced sales in the coming quarters, ROKU stock should have a lengthy runway to higher prices, in my opinion.
A Disappointing Day for ROKU Stock – Or Was It?
I must admit that I was pretty excited when ROKU stock burst 11% higher after the opening bell rang on Wall Street this morning. However, the stock only finished about 2.9% higher. This wasn’t Roku’s fault, though, as the market was generally dumping tech stocks throughout the day.
In any event, mature investors should focus on the long game, not intra-day share-price action. For example, DA Davidson analyst Tom Forte recently
raised his price target on Roku stock from $81 to $100 and maintained a Buy rating on the shares. According to
TheFly, Forte cited Roku’s innovative advertising efforts, including the company’s partnership with Shopify (
NYSE:SHOP
).
For a hot minute, it looked like ROKU stock might actually reach Forte’s $100 price target today. That’s not in the cards, though, so investors will need to be patient. Still, patience could pay off big-time, as Roku just delivered a
cost-cutting action plan along with an earnings beat.
Roku’s second-quarter 2023 net loss of $0.76 per share might not sound spectacular, but it’s a lot better than Wall Street’s
call for a loss of $1.27 per share. In addition, Roku reported $847 million in
revenue, up 11% year-over-year and a perfectly respectable result, if you ask me.
Building Up by Cutting Back
Perhaps these decent quarterly results prompted Macquarie analyst Tim Nollen to reiterate his Outperform rating on ROKU stock and publish a $93 price target on it. Plus, there’s another bullish consideration — Roku’s specific plan, revealed in a Form 8-K filing, to “implement additional measures to continue to bring down its year-over-year operating expense growth rate.”
In other words, Roku is getting serious about reducing its financial outlays this year. That’s a welcome development since generating strong revenue is only part of the equation; cutting costs is just as important in the final analysis.
Don’t get the wrong idea. Roku certainly expects to generate robust revenue. Compared to the company’s previous projection of $815 million in current-quarter revenue, Roku now expects to generate revenue of $835 million to $875 million for the third quarter.
However, it’s also encouraging to learn that Roku’s management knows exactly what needs to be done to cut costs in 2023. Specifically, the company plans to reduce its “office space utilization,” perform a “strategic review of its content portfolio,” reduce “outside services expenses,” slash its workforce by “approximately 10%,” and limit new hires. These measures may be uncomfortable in the short term, but they’re probably necessary in order to improve
Roku’s balance sheet.
Is ROKU Stock a Buy, According to Analysts?
On TipRanks, ROKU stock comes in as a Moderate Buy based on eight Buys, eight Holds, and two Sell ratings assigned by analysts in the past three months. The
average ROKU stock price target is $81.50, implying 5.4% downside potential.
If you’re wondering which analyst you should follow if you want to buy and sell ROKU stock, the most accurate analyst covering the stock (on a one-year timeframe) is
Jason Helfstein of Oppenheimer, with an average return of 67.1% per rating and a 69% success rate. Click on the image below to learn more.
Conclusion: Should You Consider ROKU Stock?
There’s plenty of headroom between the current Roku share price and its 2021 high. I’m not suggesting that the stock will reclaim its prior peak this year, but it feels like there’s a favorable risk-to-reward balance here.
Moreover, Roku’s management envisions strong current-quarter sales and is implementing a slew of cost-cutting measures throughout the year. Consequently, I feel that investors should consider ROKU stock for a buy-and-hold position.
Disclosure
In the latest trading session, Netflix (NFLX) closed at $445.76, marking a -0.65% move from the previous day. This move was narrower than the S&P 500's daily loss of 0.7%. Meanwhile, the Dow lost 0.57%, and the Nasdaq, a tech-
Peloton stock fell to all-time lows in August, and is now priced at a deep discount to its all-time highs. While the company faces several unique headwinds - and is not out of the woods yet - PTON might be a risk worth taking at these prices.
We're now into September, and that means many investors wonder if the September effect will be in place. This speaks to the historical trend of stocks underperforming in September compared to other months.
How you approach September may depend on whether you're an optimist or
Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Netflix Inc (Symbol: NFLX), where a total of 155,969 contracts have traded so far, representing approximately 15.6 million underlying shares. That amounts to about 347.4
Wall Street's main indexes were poised for a lower open on Tuesday as higher Treasury yields weighed on major growth stocks, while downbeat data on services activity in China stoked worries over demand in the world's second largest economy.
U.S. stock index futures fell on Tuesday as higher Treasury yields weighed on major growth stocks, while downbeat data on services activity in China stoked worries over demand in the world's second largest economy.
The SPDR S&P 500 ETF Trust (
SPY
) is a viable option for investors looking for a cost-effective, transparent, and highly liquid alternative to the S&P 500 Index (
SPX
). It closely mirrors the S&P 500, offering investors a diversified portfolio of large-cap U.S. stocks without the need to purchase them individually. Importantly, the SPY ETF boasts a favorable Outperform Smart Score on TipRanks, signaling positive performance signals. Additionally, the analysts’ average price target suggests there is potential for further growth.
SPY ETF: Key Factors to Consider
One of the major factors worth considering is the SPY ETF’s considerably low fees in comparison to actively managed mutual funds. It has an expense ratio (the cost of managing the ETF) of 0.09%, which makes it an appealing investment.
Furthermore, SPY is a highly liquid investment option with a substantial trading volume. This high liquidity ensures that investors can easily buy or sell shares of the ETF as needed, contributing to its attractiveness.
Additionally, the ETF has delivered an average annualized return of 12.73% in the past decade as of June 2023. Moreover,
SPY pays a 1.45% annual dividend yield, which enhances investors’ returns over the long run.
Favorable Smart Score
According to TipRanks’ Smart Score System,
SPY has a Smart Score of 8 out of 10, which indicates that the ETF could outperform the broader market over the long term. It is worth highlighting that more than 50% of its holdings boast an Outperform
Smart Score (i.e., a score of 8 or higher).
As per the data, retail investors have displayed a
Very Positive signal towards the stock. About 16.9% of TipRanks’ retail investors increased their holdings of the SPY in the last 30 days. This suggests an active interest and engagement by retail investors in the stock.
Furthermore, the SPY ETF enjoys bullish sentiment from bloggers and Positive news sentiment on TipRanks.
Is SPY a Good ETF to Invest in?
SPY has a Moderate Buy consensus rating on TipRanks. Further, the
average SPY stock price target of $515.43, based on the consensus analyst ratings on its
505 holdings, implies 14.2% upside potential.
Based on TipRanks’ easy-to-read technical summary signals, the
SPY ETF stock is a Buy in the one-day time frame. This is based on 12 Bullish, six Neutral, and four Bearish signals.
Top 10 Performing Stocks in SPY ETF
Several holdings within the SPY ETF have delivered robust returns over the past year. We present to you the top 10 stocks that stand out as notable winners with gains exceeding 80%. Importantly, analysts believe there is further upside potential for most of them.
Nvidia Corporation (
NVDA
)
Royal Caribbean Cruises (
RCL
)
Pultegroup (
PHM
)
Fair Isaac Corporation (
FICO
)
General Electric (
GE
)AVGO,
Netflix, Inc. (
NFLX
)
Meta Platforms, Inc. (
META
)
Eli Lilly And Company (
LLY
)
Axon Enterprise, Inc. (
AXON
)
Broadcom, Inc. (
AVGO
)
Disclosure
U.S. stock index futures fell on Tuesday as higher Treasury yields weighed on growth stocks, while a slow pace of expansion in services activity in China stoked worries over demand in the world's second largest economy.
In recent trading, shares of Netflix Inc (Symbol: NFLX) have crossed above the average analyst 12-month target price of $439.97, changing hands for $440.04/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuat