Can a Takeover Save Roku Stock?
Can a Takeover Save Roku Stock?
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Is$Roku Inc(ROKU.US)$going to be acquired?
Not yet. But rumors persist that $奈飞(NFLX.US)$is looking to buy the manufacturer of internet-connected television sets and other devices.
When the rumors of a takeover first surfaced on June 8, ROKU stock jumped 10% as investors grew excited about the prospect of a Netflix/Roku combination. But since then it's been crickets. No formal announcement has been made, leaving analysts and investors wondering what's next for Roku and its beleaguered shareholders.
ROKURoku, Inc. $94.49
Back In the Fold?
Should Netflix actually make a play for Roku, the streaming giant would be returning Roku to its fold. This is because Roku was created within Netflix before it was spun off in 2008. Roku founder and chief executive officer (CEO) Anthony Wood was developing a set-top box for Netflix. But the streamer didn't follow through with the idea over concerns that the device would prevent it from launching its streaming service on multiple platforms.
Acquiring Roku now does make some sense for Netflix as it would give it access to Roku's advertising sales platform as it transitions away from a subscription-only business model. Multiple analysts have said that Netflix buying Roku makes sense given that it would enable the streamer to run targeted advertising for the first time in its 25 year history.
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Plus, the timing could work as the 65% decline in ROKU stock this year has brought its market capitalization down from $60 billion to $13 billion, making it an easier pill for Netflix to swallow.
Other Issues
While the speculation of Netflix acquiring Roku might sound good, there are reasons why a deal might not materialize. The main reason is that Netflix has been weakened this year as its share price has plunged 70% on poor financial results and a drop in subscriptions. The very reason that Netflix is planning to add advertising to its service (something it previously said it would never do) is because $175 billion has been wiped off the company's market capitalization this year.
Another concern is that Netflix's balance sheet is under stress because of the $33 billion it has committed for content development this year. Analysts seem to agree that any bid for Roku would be an all-stock transaction as the company doesn't have the cash needed for an acquisition. Still, Roku shareholders might welcome a buyout from Netflix given that ROKU stock is currently 81% below its 52-week high of $490.76.
Roku's video-advertising platform, which generated $647 million in revenue during this year's first quarter, is the company's main revenue generator now that sales of its physical streaming devices has slowed markedly coming out of the pandemic.
Wait on ROKU Stock
Now is not the time for investors to take a position in Roku stock. The uncertainty surrounding a potential takeover by Netflix is further weighing down Roku's share price, which was under pressure before rumors of an acquisition surfaced.
Investors should also consider that Netflix and its stock have been badly beaten up this year on news of slowing growth and an uncertain outlook. Until we know what will happen with Roku, investors should remain on the sidelines. ROKU stock is not a buy.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post Can a Takeover Save Roku Stock? appeared first on InvestorPlace.
InvestorPlace-股票市場新聞、股票建議和交易提示
$Roku Inc(ROKU.US)$會被收購嗎?
還沒。但有傳言稱,$奈飞(NFLX.US)$正在尋求收購這家聯網電視機和其他設備的製造商。
6月8日,當收購傳言首次浮出水面時,由於投資者對Netflix/Roku合併的前景感到興奮,Roku的股價上漲了10%。但從那時起,它就成了蟋蟀。目前還沒有正式的聲明,這讓分析師和投資者想知道Roku及其陷入困境的股東的下一步是什麼。
ROKUROKU公司,94.49美元
回到圈子裏了?
如果Netflix真的與Roku展開合作,這家流媒體巨頭將把Roku送回自己的懷抱。這是因為Roku是在2008年Netflix剝離之前在Netflix內部創建的。Roku創始人兼首席執行官(CEO)安東尼·伍德正在為Netflix開發一款機頂盒。但由於擔心該設備會阻止其在多個平臺上推出流媒體服務,該流媒體公司並未貫徹這一想法。
現在收購Roku對Netflix來説確實有一定的意義,因為這將使Netflix在擺脱僅限訂閲的商業模式之際,能夠進入Roku的廣告銷售平臺。許多分析師表示,Netflix收購Roku是有意義的,因為這將使這家流媒體公司在其25年的歷史上首次能夠投放有針對性的廣告。
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此外,今年Roku股價下跌65%,市值從600億美元降至130億美元,這讓Netflix更容易接受。
其他問題
雖然Netflix收購Roku的猜測聽起來可能很好,但交易可能無法實現是有原因的。主要原因是Netflix今年表現疲軟,由於財務業績不佳和訂閲量下降,其股價暴跌70%。Netflix之所以計劃在其服務中添加廣告(此前Netflix曾表示永遠不會這麼做),是因為該公司今年的市值蒸發了1750億美元。
另一個令人擔憂的問題是,Netflix的資產負債表正面臨壓力,因為它今年承諾在內容開發上投入330億美元。分析師似乎一致認為,對Roku的任何收購都將是全股票交易,因為該公司沒有收購所需的現金。不過,考慮到Roku的股價目前較52周高點490.76美元低81%,Roku的股東可能會歡迎Netflix的收購。
Roku的視頻廣告平臺在今年第一季度創造了6.47億美元的收入,由於其實體流媒體設備的銷售在疫情結束後明顯放緩,該平臺是該公司的主要收入來源。
等待Roku股票
現在不是投資者持有Roku股票頭寸的時候。圍繞Netflix潛在收購的不確定性正在進一步打壓Roku的股價,在收購傳言浮出水面之前,Roku的股價一直承壓。
投資者還應該考慮到,由於增長放緩和前景不確定的消息,Netflix及其股票今年遭受了沉重打擊。在我們知道Roku會發生什麼之前,投資者應該保持觀望。Roku股票是不買到了。
出版之日,喬爾·巴格洛沒有(直接或間接)持有本文所述證券的任何頭寸。本文中表達的觀點是作者的觀點,受InvestorPlace.com發佈指南的約束。
這篇文章可以拯救Roku股票嗎?最先出現在InvestorPlace上。
譯文內容由第三人軟體翻譯。
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