2 Reasons to Buy Roku Stock, and 1 Reason to Sell

Investors have thrown in the towel on (NASDAQ: ROKU). The pandemic-era favorite is off close to 90% from all-time highs as Wall Street continues to worry about profitability and its competitive positioning in the streaming TV (CTV) sector. Even though nobody is talking about this stock anymore, the CTV platform is growing market share in the United States and around the world. It just reported strong growth yet again in the first quarter of 2024, but shares are selling off and down 34% year to date (YTD), potentially creating a buying opportunity for patient investors.

Here are two reasons to buy Roku stock, and one reason to sell.

Roku is the leading CTV platform in the United States and Mexico. Last quarter, there were 81.6 million Roku streaming households around the globe. Compared to a competitor like Comcast with 13.6 million video customers in the United States, Roku has gained considerable scale for its CTV platform in the last decade. Its users are moving in the right direction, too. Streaming households grew 14% year-over-year last quarter and have been growing at a double-digit rate for many years now. Competitors like Comcast are losing video customers, likely to people who are switching to CTV services such as Roku.

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Source Fool.com