In the last week, Roku (NASDAQ:ROKU) soared by another 20%, bringing the stock up almost six-fold from its 52-week lows. As its user base grows, investor interest in ROKU stock will grow.
On Jan. 8, Roku said its television operating system was number one for smart-TV in the U.S. and Canada. Just as Netflix (NASDAQ:NFLX) stock rallied for years in the last decade on growing subscriptions, Roku is enjoying the same momentum. Roku does not have just a Roku TV. It has a Wireless Soundbar wireless reference design for consumers. It also has a subwoofer. The sound system will join companies like TCL, Hisense, and Enclave as it expands the product internationally.
Viewership and usage for Roku continue to impress. On Jan. 6, the company announced a milestone. It posted 51.2 million active accounts for the quarter ending Dec. 31, 2020. This is up from ~14 million in 2020. Streaming topped 58.7 billion hours in 2020.
With no end to the lockdown in sight, expect Roku usage to explode to the upside again this year.
Your Takeaway
Roku does not trade at favorable valuations. Neither does the market. So, should the coronavirus vaccine work and people return to work, viewership may fall. A return to work order is unlikely in the near-term. That gives Roku stock time to keep rising.
