Roku Sees Growth Rebound But Faces Ongoing Margin Pressures Amid Fierce Competition
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Roku's growth is reaccelerating but competitive position and margins remain concerns. International expansion progress disappointing so far.
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Cost cutting starting to reduce burden of elevated operating expenses. Cash flows also improving.
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Video ad revenues recovering but some ad verticals like financial services still weak. Roku Channel growing quickly but appears to be dragging on margins.
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Roku maintaining share gains in US TV market. Launch of Roku-branded TVs and devices seems aimed at protecting market position.
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Valuation reflects doubts about growth and margins. But stock could move higher if growth accelerates further and macro environment remains stable.