Roku and Spotify

Both stocks have been up and down recently, and Roku had quite a significant short position before the price drop. If you like the Roku story it is just a question of valuation.
Beth Kindig thinks that Roku will be over $100 within two years, so if you have the chance to buy at $50 or close this might be quite a good entry point. As the shorts will wish to cover, a rally relative to the market will announce that the clever short traders have closed.
As regards Spotify, mostly owned by Private Equity since it came to market, I was interested to read that Hedge Funds had taken long positions. The way that successful Private Equity works after getting a market listing is to gradually sell out, enabling a return of capital to investors – who in turn give this capital back for investment in new private equity funds.
Hedge Funds should not have really been involved at recent valuations – unless they thought that a takeover was on the cards. But if their shorts worked on other stocks, maybe the hedge fund dealers will fall back on their karaoke anthem “The first cut is the cheapest” I never thought that a takeover offer would work for Spotify because private equity fund managers are so difficult to deal with – always finding reasons to turn down offers until a very full price is paid.

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