Is Roku the Next Great Internet Platform, or Just a Commodity? With Alex Morris (Ticker: ROKU)
Listen On:
Show Notes
This week we brought back Alex Morris (the Science of Hitting) to discuss Roku. Here are some questions we asked him:
Can you describe what’s been going on with Roku lately? Just trying to get listeners up to speed with the current situation
Platform revenue has 5x’ed over the past three years. Why is that?
Thoughts on the original content and Roku Channel strategy? How could this help or hurt the business?
International expansion. Why has it largely been a dud? Could that change?
Is there a path for the advertising business to scale up? Is it possible for them to gain negotiating leverage with YouTube and Netflix?
You mentioned that you think new video services are at a disadvantage to established players. Can you describe why that is?
You believe the CTV industry will play out like the pay-tv (cable) industry. Why?
If you’re long Roku, do you need to be (theoretically) short Netflix?
Thoughts on valuation at a market cap below $7 billion?
Disclosure: The author and podcast guests are not your financial advisors. Ryan Henderson and Brett Schafer are general partners and portfolio managers at Arch Capital. Clients of Arch Capital may hold securities discussed on this show.