Can Roku Catch Up to Amazon and Other Mega-Cap Tech Competitors? No, But Here's Why It Doesn't Need To.
At first glance, Roku (NASDAQ: ROKU) might appear weak competitively. The streaming platform competes with the largest companies in tech, including Amazon, Google parent Alphabet, and Samsung. This places Roku at a size disadvantage as the liquidity of each of these mega-tech companies far exceeds Roku's $12 billion market cap.
Meanwhile, Roku continues to look for ways to cut costs. In a regulatory filing on September 6, the company announced it will lay off 10% of its workforce (about 360 people) by the end of the year. It's Roku's third round of layoffs in the last year.
But despite its small size and cost-cutting actions, the entertainment stock has built a strong case that it can at least compete with these tech giants on the streaming front. Three factors may make it a compelling investment despite its sizable competitors.
Source Fool.com
Roku Stock
Currently there is a rather positive sentiment for Roku with 33 Buy predictions and 6 Sell predictions.
With a target price of 93 € there is a hugely positive potential of 54.18% for Roku compared to the current price of 60.32 €.
