Forecast Of The Day: Roku’s Average Revenue Per User
What?
Roku’s (NASDAQ:ROKU) Average Revenue Per User from its platform business rose from $23 in 2019 to around $41 in 2021. Trefis expects the metric to grow to over $55 by 2023.
Why?
- Will Cost Cuts and User Gains Power Roku’s Q2 Results
- Roku Stock Can Rise To $70 As Cash Flows Surge
- Is Roku Stock Attractive At $62 As Engagement Rises And Costs Decline?
- Down 37% This Year, Will Roku Stock Recover Following Q1 Results?
- Roku Stock Gained 56% Over The Last Three Months, Will It Rise Further Following Q4 Results?
- Up 40% Over The Last Week, Will Roku Stock Continue Its Strong Run?
Growth is being driven by rising advertising and content-related sales on the platform.
So What?
We think Roku stock is undervalued. We value Roku at $142 per share, about 40% ahead of the current market price.
See Our Complete Analysis For Roku
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
| Returns | May 2022 MTD [1] |
2022 YTD [1] |
2017-22 Total [2] |
| ROKU Return | 5% | -57% | 89% |
| S&P 500 Return | -1% | -14% | 83% |
| Trefis Multi-Strategy Portfolio | -3% | -19% | 217% |
[1] Month-to-date and year-to-date as of 5/18/2022
[2] Cumulative total returns since the end of 2016
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