Roku has crossed a significant milestone of fifty million energetic subscribers in the course of the fourth quarter, in line with preliminary figures.
The video streaming platform is scheduled to report its 4Q leads to February. Following the replace, Roku (ROKU) inventory closed 2.3% greater on Wednesday.
Roku mentioned that it expects to succeed in 51.2 million energetic subscribers within the fourth quarter, which is above analysts’ expectations of fifty.3 million subscribers. The corporate mentioned that its customers streamed 17 billion hours in the course of the fourth quarter, in comparison with the Avenue’s expectations of 16.3 billion streaming hours and 55% greater than throughout the identical interval final yr.
As for 2020, Roku noticed an addition of 14 million subscribers in its energetic consumer base. Furthermore, customers streamed for about 58.7 billion hours in the course of the yr, reflecting a rise of 55% year-over-year.
In 3Q, Roku’s streaming hours totaled 14.8 billion. The corporate added 2.9 million energetic subscribers, ending the quarter with 46 million subscribers. In the meantime, it reported 3Q earnings of $0.09 per share, versus analysts’ expectations for a lack of $0.42 per share. Its revenues of $452 million additionally exceeded the Avenue’s estimates of $369 million. (See ROKU stock analysis on TipRanks)
Following the preliminary numbers, Benchmark Co. analyst Daniel Kurnos maintained a Purchase ranking and a worth goal of $410 (19.6% upside potential) on the inventory. In a notice to buyers, Kurnos mentioned that Roku is one in all his prime picks for 2021 and he would purchase the inventory on any weak spot.
Total, the inventory scores a cautiously optimistic outlook from the remainder of the Avenue. The analyst consensus of a Reasonable Purchase relies on 12 Buys, 6 Holds and 1 Promote. In view of the 149.4% share rally over the previous yr, the typical price target of $290.50 implies draw back potential of about 15.3% to present ranges.
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