Is Roku a Safe Stock?
Roku (NASDAQ: ROKU) is generally seen as a high-octane growth stock. In many ways, this is a value investor's worst nightmare.
The media-streaming technology expert's stock skyrocketed as much as 723% higher during the COVID-19 lockdown phase. That surge was followed by an equally dramatic plunge, and Roku currently trades 90% below last year's all-time highs.
Roku isn't always profitable, but when it is, shares are changing hands at nosebleed-inducing price-to-earnings (P/E) ratios. Even its price-to-sales (P/S) ratio often sits in double-digit territory -- a rare feat that long-term growth phenomenons like Netflix (NASDAQ: NFLX) only rarely reached and Apple (NASDAQ: AAPL) never did:
Source Fool.com
