New Trade - 11/7/19
ROKU reported a strong quarter, as usual a bit noisy, there are a lot of moving parts but the secular theme of cord cutting and digital ads migrating to SVOD platforms is early in its life cycle. The stock is down 17% at the open and offers a strong buying opportunity for long term investors and traders.
Buy here at $117.4 for a trade back to $130
Leave a little room to add under $115 but I think the RR is pretty solid right here. This wide channel has a bottom around $110 area and the machines could easily press it down to there where a more robust bounce could occur.
Here’s the full report on the company post-earnings https://www.globalbrandsmatter.com/roku-roku
OLD TRADE - Now closed
Roku - ROKU
Entry: $102.15
Targets: $108-110+ See below
Roku is probably the most mis-understood brands in the 200 Brands Index. This one is a show-me stock but is wedged in the middle of one of the most powerful trends: media consumption. The stock certainly could fall to the $90 solid support but it would just make me more aggressively long. If the stock breaks $90, the bottom of the Bollinger band at $80 could happen very quickly but don’t get shaken out of this stock, buy the dips, carefully and in small tranches given how volatile the stock has been.
10/9/19
Roku caught an upgrade today while there’s rumors of a “skinny trade deal”, whatever that means. I still love Roku’s long-term opportunities but this is a trade log so an 8% gain in this crazy market is a worthwhile gain at the current pre-market level over $111. Who knows if this rally holds, I suspect by the close the averages are flat to down.
