Roku is not yet available in the U.K. and I thought that it would be a good idea to postpone changing my rather old Samsung until Roku Smart TVs are here. My daughter has an ancient Sony and has supercharged this by buying a firetvstick.
So when I was having delays with cabled Netflix etc I bought one to try it out – and it works so well that the picture quality has definitely improved.
So my point is to ask why Roku are leaving the European markets wide open to Amazon ? They seem to have won a court battle in Mexico, a country not worth the healthy bones of a single Pomeranian grenadier, as Bismarck might have remarked.
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.
During my research I came across articles written by Beth Kindig. You can find her work at https://beth.technology in full now that Seeking Alpha are making things difficult to read without a subscription.
You should read her views on why Apple is unlikely to manufacture cars – why the Roku user base is likely to continue its relentless expansion – and why Spotify could turn out to be a disappointing investment at recent valuation.
She also gives the reasons why Samsung’s Smart TV offering is such a miserable failure. Just as well that I never got round to replacing my 2006 Samsung in the U.K. which still gives an excellent picture – I will wait for Roku.