Has Roku Earned Its Expensive Valuation?
Roku (NASDAQ: ROKU) has been one of the hottest stocks in the market over the last year. Its shares are up over 230% in 12 months. That has led its stock to be selling at expensive valuations.
The company has many things going for it, to be sure. For one there is a long-run secular tailwind from linear TV to streaming content. Then, unsurprisingly, advertisers are following viewers and increasing spending on connected TV. Finally, Roku is successfully expanding internationally. But is it all enough to earn its expensive valuation? Let's find out.
Roku's stock is up over 230% in the last 12 months. Image source: Getty Images.
Source Fool.com
