In this video, I will be talking about Roku (ROKU -5.06%) and why I believe it will be a winner in 2022 now that its dispute with Google (GOOGL -0.15%) is over. You can find the video below, but here are some highlights.
- Roku recently announced that it's agreed to a multiyear extension with Google for YouTube and YouTube TV, putting the recent public dispute to bed.
- Despite the stock being down 50% since its all-time high earlier this year, Roku's business has been doing very well. Revenue grew 51% year over year (YOY) to $680 million, platform revenue increased 82% YOY to $583 million, and gross profit was up 69% YOY to $364 million. So if you were looking for an entry point, now might be a good time.
- In 2022, Sharp will reenter the US TV market in partnership with Roku.
- The new TCL Google TVs were supposed to be Roku killers but instead turned out to be buggy and slow. It was reported that Best Buy, the exclusive US retailer of the TCL Google TVs, has removed both models from its store listings.
- Every year, more people cut the cord and move to streaming services, and as more people move away from linear television, so will the advertising dollars. I can't think of a better platform to use than Roku when it comes to TV advertising.
- According to research company eMarketer, Americans on an average day will spend more time on streaming TV than on all major social media platforms combined: three times as much as on Facebook, twice as much as on YouTube, and roughly two and a half times as much as on Instagram, TikTok, and Snapchat combined.
For the full insights, do watch the video below, and consider subscribing.
*Stock prices used were the closing prices of Dec. 10, 2021. The video was published on Dec. 13, 2021.
