Roku

[engineering]

EPS -6.17
The kind of crap reminds me of the dot com bubble.

Their numbers seem a bit suspicious too.
Capital expenditures growth rate 5yr
77.3%
Tangible book value growth rate 5yr
74.75%

Just what did they buy that has no noticable depreciation in 5 years? Gold bricks?
It seems like anything you're going to buy as capex for a streaming business is going to be either rapidly depreciating IT equipment or streaming content itself which I would expect to, on average, lose value with time.
I wonder if they're losing more that they say they are and covering it up by inflating their assets.

 

[Pricechange]

EPS -6.17
The kind of crap reminds me of the dot com bubble.

Their numbers seem a bit suspicious too.
Capital expenditures growth rate 5yr
77.3%
Tangible book value growth rate 5yr
74.75%

Just what did they buy that has no noticable depreciation in 5 years? Gold bricks?
It seems like anything you're going to buy as capex for a streaming business is going to be either rapidly depreciating IT equipment or streaming content itself which I would expect to, on average, lose value with time.
I wonder if they're losing more that they say they are and covering it up by inflating their assets.

Indeed... I couldnt agree more. The dot com bubble had the same type of Ticker darlings that could do no wrong...until they crashed and burned to near zero

 

[The_Krakenite]

I decided to take a little gamble today. Shorted a PUT-LEAP into 2026. Quite a bit of premium for a strike at 70.

Some analysts are claiming by 2026 Roku will be profitable. LOL, we'll see. For now, I'll sit on the cash until interest rates drop (if they ever do).

 

[mervyn]

I decided to take a little gamble today. Shorted a PUT-LEAP into 2026. Quite a bit of premium for a strike at 70.

Some analysts are claiming by 2026 Roku will be profitable. LOL, we'll see. For now, I'll sit on the cash until interest rates drop (if they ever do).

not sure it is a good trade so far into the future. i’d consider deep in the money leap call for a rebound trade.

 

[The_Krakenite]

I really don't have that kind of conviction though. Paying ~60 IV for 700 days on a one-way bet with Roku, lol. I also try to avoid DEEP options.

Very rarely do I go long calls. Bitcoin and its miners is one of those exceptions.

 

[mervyn]

I really don't have that kind of conviction though. Paying ~60 IV for 700 days on a one-way bet with Roku, lol. I also try to avoid DEEP options.

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Very rarely do I go long calls. Bitcoin and its miners is one of those exceptions.

For example, you can spend 33 bucks on a delta 70 call $50, that’s $13 over the current price. Roku will bounce back in a quarter or 2 for sure. Known name always do, when wood starts to buy again.

 

[mervyn]

bought 1 jan17'25 70 call at 15.55, will buy more if it drops around 50-60 range. if it bounces this week, will sell a monthly covered $80.

 

[The_Krakenite]

What a shit day for me. Everything I wanted to go down in price shot up like crazy, and everything else I wanted up went down. lol

Not going to lose sleep over it though. Let's see what Mr. Market brings later on this week.

 

[mervyn]

What a shit day for me. Everything I wanted to go down in price shot up like crazy, and everything else I wanted up went down. lol

Not going to lose sleep over it though. Let's see what Mr. Market brings later on this week.

for stocks, you just have to wait.