Is Roku Stock a Buy After a Brutal 2024 Sell-Off?

Core Insights - Roku's stock has significantly declined, starting 2024 at an 81% discount from its all-time highs in 2021 and dropping another 45% year to date [1][2] - Despite the stock decline, Roku's business shows strong growth potential, with an increase in active customers and revenue [1][2] Financial Performance - Roku added 2 million streaming households in Q2, reaching a total of 83.6 million active customers [1] - Platform revenue grew 11% year over year to $824 million, while device sales surged 39$144 million [1] - The company reported a $71 million operating loss, an improvement from a$126 million loss in the same period last year [1] - Cash from operations was $332 million, representing 34$15 million in Q2 2023 [1] Market Position and Competition - The narrative that Roku's ad business is struggling or that it faces overwhelming competition is being challenged, as the company shows solid growth in both services and hardware [3][4] - Competitors like Amazon and Alphabet are present, but Roku continues to gain traction in the market [3][4] Investment Outlook - The current market valuation of Roku does not reflect its business growth and product popularity, suggesting it remains an attractive investment opportunity [5][6] - The company is expanding internationally and experiencing increased sales of its devices, indicating a positive trajectory [7] - There is optimism that Roku's stock will eventually recover as the market recognizes its underlying business health [8]