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-股票市场新闻、股票建议和交易提示
$Roku Inc(ROKU.US)$会被收购吗?
还没。但有传言称,$奈飞(NFLX.US)$正在寻求收购这家联网电视机和其他设备的制造商。
6月8日,当收购传言首次浮出水面时,由于投资者对Netflix/Roku合并的前景感到兴奋,Roku的股价上涨了10%。但从那时起,它就成了蟋蟀。目前还没有正式的声明,这让分析师和投资者想知道Roku及其陷入困境的股东的下一步是什么。
ROKU公司,94.49美元
回到圈子里了?
如果Netflix真的与Roku展开合作,这家流媒体巨头将把Roku送回自己的怀抱。这是因为Roku是在2008年Netflix剥离之前在Netflix内部创建的。Roku创始人兼首席执行官(CEO)安东尼·伍德正在为Netflix开发一款机顶盒。但由于担心该设备会阻止其在多个平台上推出流媒体服务,该流媒体公司并未贯彻这一想法。
现在收购Roku对Netflix来说确实有一定的意义,因为这将使Netflix在摆脱仅限订阅的商业模式之际,能够进入Roku的广告销售平台。许多分析师表示,Netflix收购Roku是有意义的,因为这将使这家流媒体公司在其25年的历史上首次能够投放有针对性的广告。
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此外,今年Roku股价下跌65%,市值从600亿美元降至130亿美元,这让Netflix更容易接受。
其他问题
虽然Netflix收购Roku的猜测听起来可能很好,但交易可能无法实现是有原因的。主要原因是Netflix今年表现疲软,由于财务业绩不佳和订阅量下降,其股价暴跌70%。Netflix之所以计划在其服务中添加广告(此前Netflix曾表示永远不会这么做),是因为该公司今年的市值蒸发了1750亿美元。
另一个令人担忧的问题是,Netflix的资产负债表正面临压力,因为它今年承诺在内容开发上投入330亿美元。分析师似乎一致认为,对Roku的任何收购都将是全股票交易,因为该公司没有收购所需的现金。不过,考虑到Roku的股价目前较52周高点490.76美元低81%,Roku的股东可能会欢迎Netflix的收购。
Roku的视频广告平台在今年第一季度创造了6.47亿美元的收入,由于其实体流媒体设备的销售在疫情结束后明显放缓,该平台是该公司的主要收入来源。
等待Roku股票
现在不是投资者持有Roku股票头寸的时候。围绕Netflix潜在收购的不确定性正在进一步打压Roku的股价,在收购传言浮出水面之前,Roku的股价一直承压。
投资者还应该考虑到,由于增长放缓和前景不确定的消息,Netflix及其股票今年遭受了沉重打击。在我们知道Roku会发生什么之前,投资者应该保持观望。Roku股票是不买到了。
出版之日,乔尔·巴格洛没有(直接或间接)持有本文所述证券的任何头寸。本文中表达的观点是作者的观点,受InvestorPlace.com发布指南的约束。
这篇文章可以拯救Roku股票吗?最先出现在InvestorPlace上。
译文内容由第三方软件翻译。
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