I want you to ask yourself a question:
How valuable are the things we pay attention to?
**Half** of American households have a Roku device.
Roku is the leading streaming TV distributor in the U.S., reaching nearly 120 million people.**Roku's audience is larger than the subscribers of the six largest traditional pay-TV providers combined.** It is the #1 smart TV streaming OS in the US, Canada and Mexico.
Source: https://developer.roku.com/docs/features/features-overview.md
As of the third quarter of 2024, Roku has 85.5 million active accounts worldwide, which is the company's highest ever, a 12.8% increase from Q3 2023.
Streaming time per active user: 246.8 minutes per day in Q3 2024, a 5.8% increase from Q3 2023
As part of Roku’s privacy policy, they collect:
“Information about your activities, like the channels you install or access (including usage statistics such as what channels you access, the time you access them, and how long you spend viewing them), and information about the videos and other content you select and stream within these streaming services. If you use the Roku Media Player to view your video or photo files or listen to your music files, Roku will collect data about the files viewed within the Roku Media Player, such as codecs, and other metadata of the local files you play.”
https://docs.roku.com/published/userprivacypolicy/en/us
Why do you think they practically give away their streaming sticks? The money isn’t in their devices, it’s in the data they collect on you.
Google’s in a similar business. They have 4.97 billion users, and their market cap is 2.14 Trillion. The valuation is 428x the amount of users.
If we applied the same multiples, that means $ROKU is worth around a 37 Billion dollar market cap, putting $ROKU at $250 a share.
I’d venture to say it’s more around $750 a share, given the majority of Roku’s users are in the US.
Let’s see what this holds.