Rokushort
Roku Grapples with Second Major Security BreachRoku Inc.( NASDAQ:ROKU ), the leading streaming platform, finds itself embroiled in a cybersecurity crisis yet again as it discloses its second major security breach of the year, exposing the personal information of a staggering 576,000 users. This alarming revelation has sent shockwaves through the company and its customer base, underscoring the urgent need for robust cybersecurity measures in an increasingly digital world.
The breach, announced on April 12, has dealt a severe blow to Roku's reputation as a guardian of user data, coming hot on the heels of a previous incident just a month prior. In March, the company revealed that 15,363 customers had fallen victim to a similar breach, wherein sensitive information including credit card details, passwords, and usernames were compromised.
In the latest breach, malicious actors capitalized on vulnerabilities within Roku's security infrastructure, exploiting loopholes to gain unauthorized access to customer accounts. While Roku ( NASDAQ:ROKU ) reassures users that no full credit card numbers or complete payment information were compromised, the severity of the breach cannot be understated. In nearly 400 cases, unauthorized purchases of streaming service subscriptions and Roku ( NASDAQ:ROKU ) hardware products were made using stolen payment methods, sparking fears of financial loss and identity theft among affected users.
In response to the crisis, Roku ( NASDAQ:ROKU ) has taken decisive action to mitigate the fallout. The company has initiated a comprehensive security overhaul, including password resets for all affected accounts, refunds or reversals for unauthorized charges, and the implementation of two-factor authentication for all users, irrespective of their involvement in the breach. These proactive measures aim to restore trust and confidence in Roku's commitment to safeguarding user data.
Amidst the turmoil, Roku's ( NASDAQ:ROKU ) stock performance reflects investor apprehension, with shares plummeting in the wake of the security breaches. The company's stock has struggled to regain its footing since February, signaling investor concerns about the long-term implications of the cybersecurity incidents on Roku's financial health and market standing.
Nevertheless, amidst the turbulence, Roku ( NASDAQ:ROKU ) offers a glimmer of reassurance by confirming that certain patent applications, including the controversial proposal to run ads on devices connected to Roku TVs via HDMI ports, are not currently being pursued. This clarification may provide some solace to customers amidst the uncertainty surrounding the company's cybersecurity posture and strategic direction.
As Roku ( NASDAQ:ROKU ) navigates the fallout from its recent security breaches, the incident serves as a stark reminder of the ever-present threat posed by cybercriminals and the critical importance of robust cybersecurity measures in safeguarding user privacy and trust. Moving forward, Roku ( NASDAQ:ROKU ) must redouble its efforts to fortify its defenses and reassure customers of its unwavering commitment to protecting their sensitive information in an increasingly interconnected digital landscape.
ROKU Trading Above The Buy ZoneNASDAQ:ROKU has lost support at the yellow trendline and has approached a key green support zone. The price is currently trading above the buy zone, and I would look for an entry within the green zone preferably around the lows at $54.
ROKU Trading Above the Buy ZoneNASDAQ:ROKU has lost support at the light blue trendline and has approached a key green support zone. The price is currently trading above the buy zone, and I would look for an entry within the green zone preferably around the lows at $54.
Roku's Rocky Road Ahead: Navigating the Storm of Streaming GiantRoku Inc. ( NASDAQ:ROKU ) finds itself at a crossroads, facing formidable challenges from industry heavyweights that threaten to disrupt its once-dominant position. The recent tumble in Roku's ( NASDAQ:ROKU ) stock price, plummeting nearly 23.86% after a bleak outlook for the first quarter, underscores the daunting hurdles ahead for the streaming service provider.
Roku's ( NASDAQ:ROKU ) struggle to fend off competition from giants like Netflix and Amazon reflects the intensifying battle for advertising dollars in the streaming space. With streaming behemoths encroaching on Roku's ( NASDAQ:ROKU ) territory, the company is grappling with a shifting paradigm, as the transition from smart devices to smart televisions diminishes demand for its devices.
Analysts, like Michael Nathanson from Moffett Nathanson, aptly describe Roku ( NASDAQ:ROKU ) as being "at the precipice of being squeezed by the emergence of challengers on all flanks." This sentiment highlights the existential threat looming over Roku as it faces mounting pressure from multiple fronts.
The potential acquisition of rival Vizio by retail titan Walmart adds another layer of complexity to Roku's ( NASDAQ:ROKU ) predicament. Walmart's interest in Vizio signals the emergence of yet another well-scaled competitor in Roku's ( NASDAQ:ROKU ) crucial retail channel. Moreover, Walmart's unparalleled relationship with major brands and its vast reservoir of shopping data pose a significant challenge to Roku's market incumbency.
Roku's ( NASDAQ:ROKU ) forecast of a steeper-than-expected first-quarter loss further compounds its woes. The company's struggle to meet analysts' expectations reflects the harsh reality of a fiercely competitive landscape and the adverse effects of external factors, such as the Hollywood strike, which have disrupted spending on media and entertainment promotions.
Despite these challenges, Roku ( NASDAQ:ROKU ) remains resilient, leveraging its innovative capabilities to navigate turbulent waters. The exclusive deal with Walmart to sell products fulfilled by the retail giant on its devices underscores Roku's ( NASDAQ:ROKU ) strategic partnerships and its commitment to maintaining relevance in a rapidly evolving industry.
Looking ahead, Roku ( NASDAQ:ROKU ) must adopt a proactive approach to address its vulnerabilities and capitalize on emerging opportunities. The company's ability to innovate, adapt, and forge strategic alliances will be pivotal in its quest to regain momentum and secure its position in the fiercely contested streaming arena.
As Roku ( NASDAQ:ROKU ) charts its course forward, investors and industry observers remain cautiously optimistic, with the average rating of 33 brokerages covering the stock hovering at "hold," accompanied by a median price target of $85. However, the path ahead remains fraught with uncertainty, as Roku ( NASDAQ:ROKU ) navigates the storm of streaming giants in its pursuit of sustained growth and success.
ROKU Options Ahead of EarningsIf you haven`t sold ROKU`s double top:
Or bought the dip here:
Then analyzing the options chain and the chart patterns of ROKU prior to the earnings report this week,
I would consider purchasing the 75usd strike price puts with
an expiration date of 2023-8-25,
for a premium of approximately $7.45.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Looking forward to read your opinion about it.
ROKU short ideaROKU potential short play
Nasdaq listed stock Roku shares dipped 1.8% in pre-market after Truist downgraded the company to a hold from a buy rating, saying that the streaming stock is hypersensitive to a tough macro environment given that a large chunk of revenues are tied to advertising.
Do people even use ROKU, we think it the offering is pretty lacklustre to be honest, a short for us.
Price action subject to a breakout from this flag pattern after running into resistance in the early $50 territory.
ROKU setting up a SHORT TRADE ROKU double topped on November 14 and December 2 and then dropped in a downtrend
until 12/28 and reversed. The mid Fib levels of the retracement a drawn onto the chart
are being approached.
I look for ROKU to bounce down off the Fib Level at 52. 2 and drop to approach the SMA 200 ( Red Line)
after first crossing under the SMA 100 ( Blue Line ) and then to the POC line of the volume profile
where buyers should take over and support price. Overall three targets ( SMA 100, SMA200, POC)
and a three tier take profit scheme for a very conservative trade.
ROKU Inc Options Ahead of EarningsIf you haven`t shorted the Double Top Bearish Chart Pattern:
or the Q2 earnings:
then you should know that looking at the ROKU Inc options chain, i would buy the $50 strike price Puts with
2022-11-4 expiration date for about
$3.35 premium.
If the options turn out to be profitable Before the earnings release, i would sell at least 50%.
Looking forward to read your opinion about it.
ROKU WOLFE WAVE SETUP OVER THE WEEKENDThere is a wolfe wave setup on the 78 min time frame (ah=on) . The projected target is calculated by extending a linear line between pivot 1 and 4 and projecting the line. This is represented as the green perforated line, as shown in the chart. The projected target is approx 75 which is expected to reach this price target before Sept 16. Projected targets are defined by identifying the apex of the wolfe wave and projecting a vertical line toward the green perforated projection tgt which is extending from left to right. Using the customizable gap finder indicator there are sets of gaps along the way toward up to 80.
ROKU: Bears still in control!!Roku
Short Term - We look to Sell at 77.50 (stop at 91.34)
Our outlook is bearish. Broken out of the wedge to the downside. There is scope for mild buying at the open but gains should be limited. Reverse trend line resistance comes in at 77.50. Preferred trade is to sell into rallies.
Our profit targets will be 41.57 and 30.00
Resistance: 80.00 / 110.00 / 140.00
Support: 55.00 / 40.00 / 20.00
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$ROKU Earnings Report$ROKU destroyed in AH Trading after Earnings Report
Hight Likely to visit POC Volume profile at $40
ROKU options ahead of earningsIf you haven`t sold the double top on ROKU:
Looking at the ROKU options chain today, i would buy the $65 puts with
2022-7-29 expiration date for about
$0.32 premium.
Looking forward to read your opinion about it.
We will we will ROKURoku
Short Term
We look to Sell at 98.40 (stop at 107.29)
Preferred trade is to sell into rallies. Bespoke resistance is located at 98.40. Posted a Bearish Outside candle on the Daily chart. This is negative for sentiment and the downtrend has potential to return.
Our profit targets will be 73.29 and 61.10
Resistance: 100.00 / 140.00 / 178.00
Support: 86.00 / 73.00 / 50.00
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WAS ROKU sell-off predictable??Of course it was! The Double Top is one of the most obvious chart patters you can find:
And i think it might go just where it all started: at the Covid lockdown level of $59.
I know that today ARK bought around 400K shares, but i think they are wrong, ROKU hasn`t bottomed yet!
Looking forward to read your opinion about it.
ROKU: 90 then 300 then 30Roku will not be returning to new ATHs anytime soon. If you are LTBH, stay far away. Traders can make some $ on the B-Wave bounce
Was the ROKU sell-off predictable?I warned you about than since i saw the Double Top Bearish Chart Pattern of ROKU last year:
and then the Netflix earnings, thinking ROKU, as a former Netflix project, will be next:
Now, after the earnings, i see a retracement to the May 2019 level.
Net Sales: $865.3 million vs. $894 million expected
Diluted EPS: $0.18 vs. $0.05 expected
For 2022 Roku sees adjusted EBITDA similar to 2020 levels of $150 million vs The Street estimates of $535 million in adjusted operating profits.
Roku Analysis 09.02.2022Hello Traders,
welcome to this free and educational analysis.
I am going to explain where I think this asset is going to go over the next few days and weeks and where I would look for trading opportunities.
If you have any questions or suggestions which asset I should analyse tomorrow, please leave a comment below.
I will personally reply to every single comment!
If you enjoyed this analysis, I would definitely appreciate it, if you smash that like button and maybe consider following my channel.
Thank you for watching and I will see you tomorrow!
ROKU the next Netflix ? In terms of selloff i mean.
If you remember, Roku was a Netflix project in 2007.
Roku TV founder Anthony Wood created Roku and started the streaming boxes without Netflix taking a risk.
ROKU is embarking on its original content journey in a market with strong competitors.
Waiting for the stock to come to the high volume buy area.
No clear bottom for ROKUIn this post I will lay out what I believe the bull and bear cases are for ROKU while showing a pattern I noticed this week on the 4-hour timeframe that is holding steady on the daily, weekly and monthly charts.
NASDAQ:ROKU Technical analysis
ROKU is in freefall territory with no clear bottom in sight. When I looked at the 4-hour timeframe at the end of the year, I saw a potential head & shoulders pattern emerging since late December. Additionally, ROKU has already been in a steady declining channel since late July. ROKU just recently broke a low not seen Nov of '20 (see the yellow arrow).
If we look at the MACD we see that the signal line has not crossed back over. This lends itself to confirm that the bigger downtrend is still intact.
Additionally, we are consistently hitting lower lows and lower highs more often than not on both short term and longer-term timeframe charts. Most notably the 4-hour (not pictured), daily, weekly, and monthly charts (not pictured).
The RSI indicates oversold values. One could make the contrarian argument that this represents a buying opportunity. The problem I see with this bullish stance is that the longer-term trend has yet to reverse itself.
Bull case: ROKU is a streaming device platform company that is aligning itself strategically with companies that are primarily hardware device manufacturers for the integration of its players/platform and accessories. ROKU is still a relatively young company as it was founded in 2002 and is going through similar growing pains that other early-stage alternative technology entertainment companies have gone though. ROKU is also maintaining partnerships with other media companies that are leaders in original content such as YouTube TV and Apple TV. The revenue is growing in the right direction.
Bear case: ROKU recently has seen declining growth in its subscription service and that has helped accelerate a downward decline in the stock price. While companies that largely rely on subscribers and advertising revenue do not report subscription data in a format that is easy to compare, the sentiment with ROKU as of late has largely been negative due to the numbers the company has reported. It is hard to compare ROKU to any other technology company because it is not successfully separating itself from any would be competitors (even as it tries to align itself with those same companies). Most of these companies (Netflix, Apple, Alphabet, etc) will not see significant upside or downside by aligning or competing directly with ROKU as it is a relatively small player in terms of market capitalization. Alphabet is a much broader and larger tech company that also creates its own streaming devices. Apple does the same and also creates its own original content. ROKU is neither an OEM nor carved out a niche as an original content creator. When's the last time anybody heard serious buzz regarding a show you could only watch on ROKU?
This is where ROKU falls short. Unless it can find a way to set itself apart by creating original content and/or innovating its platform as a host to content providers the business itself appears unsustainable. While the company's revenue is growing, so is its debt. The FCF and revenue are growing at a much faster rate, but this can largely be explained by the work-from-home boom that many companies such as ROKU benefited from during the pandemic.
Since Q1 '21 the quarterly profit margin has been on a decline and the debt to asset ratio has started a positive trend over the last 2 quarters when it appeared it was decreasing and leveling off. Additionally, the stock still trades at a very high EPS, even after being down by more than 50% from all-time highs.
Summary
In its current form, it is hard to picture a future where ROKU successfully plays a middleman of sorts in a digital online entertainment driven world as more and more consumers move towards cutting the cord. Content is king and anybody with an internet connection and an HDMI cable can connect their laptop to an HDTV to stream any service(s) they subscribe to. Additionally, most OEMs make their own smart TVs and enabled devices. And as stated above, there are a range of dongles that provide the ability to cast one's phone or computer over their home Wi-Fi network. I project more pain for ROKU ahead and no clear bottom in sight.
ROKU: Bearish retest of the 50d? ROKU trying to break out over $237.44. Over that and the 50d ema looms at 257. Could be a great trade this week.
ROKU Daily Wolfe Wave Setup There is a wolfe wave setup on the Daily time frame in ROKU. The projected target is calculated by extending a linear line between pivot 1 and 4 and projecting the line. This is represented as the green perforated line, as shown in the chart. The projected target is 315 and then 330 gap fill . The price is expected to reach these targets within 14 days. There are several gaps above near 330 and 415. The yellow wolfe wave pattern uses a different length input value and identifies additional upside price tgt up to 415. There is a gap that is still open, it may or may not fill and just remain open into 2022. However, if the gap below 267 and the daily wolfe waves continue to display the present target prices, then the probability of success that both wolfe waves are correct become more likely to develop into a successful trade with excellent risk and reward.
