Roku Inc is valued at circa 14.5 billion USD currently, after today's 25 % up till now drop of its stock price following disappointing revenue guidance by Roku.
In my opinion, Roku is worth 100 billion USD. Streaming is slowly augmenting television. And Roku has found an ingenious way of riding the streaming boom via its streaming facilitating gadgets. What is more, Roku's advertisement business is growing strongly which is a way for Roku to provide content as well.
Not long ago Netflix, the pioneer in TV streaming, was valued at more than 300 billion USD.
Roku's revenue is forecast to grow at around 30 % year on year in 2022 which is an excellent growth rate.
And Roku is profitable as well.
The indiscriminate selling of technology stocks by panicky investors going on at the moment is already providing pockets of huge value opportunity.
Roku is just one example where there is large probability of great future value to be realised. Roku has great technological edge in streaming, that is viewing TV via the internet, an already established name in the briskly growing and currently also huge in terms of revenue market for streaming services.
Essentially, TV viewing over the internet services are a cloud service for television and Roku is a innovative player in this new, transformative field of computing.
Roku's price and market value could objectively fall a lot more from current levels. In the long run Roku's place in the streaming industry and the nature of the streaming TV industry should insure Roku's long-term success.
In short, Roku's unique position in the streaming market makes me believe Roku's intrinsic value is 100 billion USD.
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