Value Play Or Value Trap?: Roku, Inc., (NASDAQ: ROKU)

Intraday Trading of Roku, Inc.:

If one intends to pursue a career as a trader, then one must understand and choose between two basic categories of trading i.e. day trading vs swing trading. Nevertheless, the eventual aim in the case of a day trader or a swing trader remains the same which is to generate profits.

However, the holding period and the technical tools which are being used to achieve the ultimate aim differ between the two classes of traders which will be the topic of discussion in this article. Besides, there are several other factors which a trader needs to take into account in order to select the conducive trading strategy and these factors include (not exhaustive) time invested, personality trait, size of the account, trader skill level and level of commitment among others.

On 15-11-2019 (Friday), Shares of Roku, Inc., (NASDAQ: ROKU) displayed a change of 5.78 after which it closed the day’ session at $157.3. The volume amounted to 26600096 shares which compares with the average volume of 19.47M shares. Roku, Inc., a USA based Company, belongs to Services sector and CATV Systems industry. The shares of Roku, Inc. was among the active stocks of the last trading sessions.

Performance Review:

To clear the blur picture shareholders will need to look a little deeper. The LiveRamp Holdings, Inc. has shown a weekly performance of 29% and monthly performance stands at 13.11%.

The stock has shown a quarterly performance of 16.55% and a half-year performance stands at 88.77%. Analyst recommendation for this stock stands at 413.38.

Technical Analysis:

The stock price moved with change of 0.6038 to its 50 Day low point and changed -0.109 comparing to its 50 Day high point.

Profitability Ratios:

Looking into the profitability ratios of ROKU stock, the investor will find its ROE, ROA, ROI standing at -9.8%, -5.3% and -5.2%, respectively. The current relative strength index (RSI) reading is 63.6.

Target Price ROKU:

Target Price informs the investors, a stock survey at which a trader is willing to buy or sell a stock. Target pricing at which a trader projects that a buyer will buy a product. Analyst’s mean target price for the company is $137.29.


The stock price volatility remained at 6.03 in recent month and reaches at 6.21 for the week. The Average True Range (ATR) is also a measure of volatility is currently sitting at 8.78.

Simple Moving Averages ROKU:

The moving average is easy to calculate and once plotted on a chart, is a powerful visual trend-spotting tool. In theory, there is an infinite number of simple moving averages but the most common are three SMA20, SMA50 and SMA200. SMA20 is the last stop on the bus for short-term traders. Its distance from 20-days simple moving average is 14.81% and its distance from 50-days simple moving average is 21.6% while it has a distance of 60.88% from the 200-days simple moving average.

Most Important details of Roku, Inc. (EPS):

EPS in next five year years is expected to touch 0% while EPS growth in past 5 year was 0% along with sales growth of % in the last five years. EPS growth in next year is estimated to reach 86.8% while EPS growth estimate for this year is set at 86.8%.

About Kyle Johnston

Kyle Johnston has a Master’s degree in economics from San Diego State University (2012), eight years of publishing experience and over a decade of cumulative investment experience. He focuses on writing about individual stocks, frequently in the services industry. He works as a mid-level executive in the insurance industry on the portfolio management side. He is an experienced stock investor, and he is eager to share my industry expertise and what he has learned about investing with others.

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