Roku is the best media company in the world - Watch out!
For the record I typically own Roku stock. I don't right now and I didn't get the big bump today so I am pissed. Here is why Roku is the best media company in the world.
There are rumors that Comcast is thinking of buying Roku. First of all good idea for Comcast but this would be a horrible thing for the world. A better idea is Roku buying Comcast's library of media and sell the legacy cable and internet business to Cox.
Roku is unstoppable and if there is a way to stop a hostile takeover, they will never sell to Comcast or any media company. They are following the Netflix playbook and the Netflix play says that you need to stay neutral so that you can get a little bit from everyone.
Roku isn't going to sell, Comcast will need to develop its own box and make its own deals with TV companies. Maybe it is using this as a way to get a better price on ViacomCBS. I would make no sense for Roku to sell to Comcast. All Comcast would do is slow Roku down and make everyone watch The Office reruns.
Roku's price of its stock is pretty high but you need think a few years out. Roku doesn't make money from selling little boxes. Roku makes money being the family Gateway to streaming TV. Roku know what channels you have and what you watch. They know if you have kids or not and they know how old they probably are. They probably know if they are boys or girls. My boys watch a lot of dinosaurs, talking cars, and talking trains. Roku knows that. Roku gets a small piece of every movie you rent or buy through its platform. They get a piece of every ad you see and every subscription you sign up for. They make money off everything and they have the best user data and the most hours watched of any device.
Roku is the most valuable home entertainment company in the world. People just don't know it yet. I am scared of the stock at this multiple but long term watch out. People will have Roku's everywhere in the world. Its interface is the best and the price is cheap. Next best is Apple but that doesn't have as many options for channels.