Financial Performance Analysis of Roku Inc.

Roku Inc. is a company operating its business in the platform of television streaming. The company supports the users to connect with the streaming content, allows the content producers to form and monetize the audience, as well as providing advertisers which have the capabilities to engage the entire customers (roku.com, n.d.). The business platform of Roku Inc. enables its users to personalize their content assortment with an offer of cable television spare and extra streaming services that will suitable for their needs and financial budget.

Roku Inc. arrived in the public in September 2017 and has made hit more than  in only a session after it is launched. The following recession bottomed out in November has delivered a way to a drive-fueled improvement that slowed down in the higher  in December. In 2018’s second quarter, the company has set up the powerful level of trend that achieved a bigger  in October. The weakening into end of 2018 has wiped out achievements earned by the company between April and October, finding backup at  in the month of December, and at the same time, the following wave of recovery has completed a round journey into the previous upper in May 2019. Suddenly the stock broke out and resulting in sturdy rally waves that approached the most upper at  in the month of September. Most of the shareholders were going to exit, throwing down the stick over  despite the fact that the company has given up 100% of its rally wave that began in August (FARLEY, 2019).

The sell-off ended the first failure for Roku Inc. and has indicated an initial warning for the uptrend to end. On the other hand, the same indication in 2018 between March and December has failed severely, along with the stock hit the fresh highs in 5 months. Even though the same consequence might not appear this time, but at least, it has alarmed the market players to take an offer of profits opportunity. Thus, meanwhile the bounce in October has reversed, but Roku stock might post higher easily in November or else December. Still, there is an argument of short-term price outline against a vast improvement to the high in September, proposing range-bound activity into the innovative decade. The daily chart of Roku Inc, between 2018 and 2019 presented in the figure below.

Figure 1 Roku Stock Chart

Source: https://www.tradingview.com/symbols/NASDAQ-ROKU/

A stock analyst has proposed that Roku Inc. actually had earned strong. However, the company has aggressively spent and not allowing the profit to flow through. The total net profit of the company has risen up to $260.9 million, and also marginally better than the prediction of $173.4 million in the previous year (reuters.com/, 2019 ).

Meanwhile, from a report on the US Securities and Exchange Commission (sec.gov, n.d.), the filling detail of Roku Inc. can be seen from the figure below.

Source: https://www.sec.gov/Archives/edgar/data/1428439/000156459019041087/0001564590-19-041087-index.htm

Thus, from the financial performance of Roku Inc., we can conclude that the company can be measured as a profitable company.