Is Roku Inc. (NASDAQ: ROKU) Worth An Investment?

Roku Inc.(NASDAQ: ROKU) has experienced -25.52% of loss in the previous five days of trading. Roku reached at its lower price for the period of the last 52 weeks after a decline in the market. Roku shares went up 2.7% in the premarket trading on Thursday after the loop capital managing director and analyst Alan Gould changes the stock rating from sell to neutral.
ROKU stocks up 9.50% at $74.01 in the trading session of Thursday. Roku has a trading volume of roughly $4,095,478 compared to its average volume of roughly $12.91 million. The total market capitalization of ROKU is $8.562 billion. The company has a day low and high range of $67.2201- $74.89, respectively. Roku has a 52 week low and high moving average of $55.02 – $176.55, respectively.
Stocks soared as Loop Capital Analyst Aland Gould changes the rating. He said: “As compared to other media companies Roku will be less impacted by the coronavirus pandemic. However, we are also reducing our platform revenue predictions for the company based on network checks and the view that advertising will drop due to the sudden stop of the economy.”
He further said that it is difficult for the company to reduce the cost to match the speed of the economic downturn. There are currently 3 sell ratings, 3 hold ratings and 15 buy ratings for the stock, which has resulted in an overall rating of ‘Buy.’
Gould has a $68 price target in a Roku’s stock, which has dropped 47% over the past month, as the S&P 500 has dropped 29%.
Roku, Inc. operates a TV streaming platform. The company operates in two segments, Platform, and Player. Its platform allows users to discover and access various movies and TV episodes, as well as live sports, music, news, and others. As of December 31, 2018, the company had 27.1 million active accounts. It also provides advertising products, including video ads, brand sponsorships, and audience marketplace programs; and manufactures, sells, and licenses TVs under the Roku TV name.