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I'm surprised to see Roku as such a big holding for them. I wonder what their thesis. Apparently I'm not the only one confused by this https://www.reddit.com/r

I'm surprised to see Roku as such a big holding for them. I wonder what their thesis. Apparently I'm not the only one confused by this https://www.reddit.com/r/investing/comments/f3my4w/why_would_anyone_be_bullish_on_roku/ https://www.reddit.com/r/investing/comments/f3my4w/why_would... https://investorplace.com/2020/08/roku-stock-is-poised-for-long-term-gains-as-streaming-crushes-old-tv/ https://investorplace.com/2020/08/roku-stock-is-poised-for-l...

hrez 6y ago
It's not like they bought it big. It grew up. Same as TSLA.
- pedalpete 6y ago
  But they've kept it as a big portion of their holdings, which means they believe it still has more to go. Ark dropped all their shares in Illumina because they didn't see that company as continuing it's growth rate.
webinvest 6y ago
Yeah Roku confuses me more than any of the other holdings but apparently it has also outperformed the S&P500 so it turned out to be a good pick.
AznHisoka 6y ago
The basic thesis is: As more people quit cable, advertising dollars move from cable TV to ad supported content on Roku.
01100011 6y ago
As someone who is kicking himself every day for turning down a job with Roku a while back... I think the impression is that Roku has built a durable brand and will continue to capitalize on it going forward. Roku has not generated much profit yet, but AFAICT their expenditures are low and they can scale quite well. They are part device mfg and part advertising company, and we all know the market loves ad companies(Facebook, Google, etc). As a cynical embedded guy who has worked in settop boxes for the last 20 years, I see them as having easily replaceable tech and facing stiff competition from Amazon, Google and Apple(along with unforeseen foreign competitors) in the future. I specifically avoided them because I thought they were a flash in the pan(well, it was also a brogrammer shop and I wanted to avoid that). I think they've proven themselves to have some staying power, but I think their current valuation, like a lot of the market, is just flat out silly.
- justicezyx 6y ago
  > As someone who is kicking himself every day for turning down a job with Roku a while back... Same here. I am not too bothered. Reflecting on the decision, I think the prestige of working at Google is the main reason I turned down Roku. And precisely because that Roku is a promising company, because they are focused on building a business, not building a prestige, for example, a fancy office. That's one good lesson to learn from this event. Good enough for me.
throwaway1777 6y ago
A high percentage of tvs come with roku built in now. They have benefited greatly from the stay at home trend. There was actually an acronym ZARP for this, Zoom Amazon, Roku, Peloton.
isthispermanent 6y ago
This is all useful information. Roku has always been a bit puzzling to me. Might be because I don't use it and therefore don't understand the functionality.

hrez 6y ago

It's not like they bought it big. It grew up. Same as TSLA.

pedalpete 6y ago
But they've kept it as a big portion of their holdings, which means they believe it still has more to go. Ark dropped all their shares in Illumina because they didn't see that company as continuing it's growth rate.

webinvest 6y ago

Yeah Roku confuses me more than any of the other holdings but apparently it has also outperformed the S&P500 so it turned out to be a good pick.

AznHisoka 6y ago

The basic thesis is: As more people quit cable, advertising dollars move from cable TV to ad supported content on Roku.

01100011 6y ago

As someone who is kicking himself every day for turning down a job with Roku a while back... I think the impression is that Roku has built a durable brand and will continue to capitalize on it going forward. Roku has not generated much profit yet, but AFAICT their expenditures are low and they can scale quite well. They are part device mfg and part advertising company, and we all know the market loves ad companies(Facebook, Google, etc). As a cynical embedded guy who has worked in settop boxes for the last 20 years, I see them as having easily replaceable tech and facing stiff competition from Amazon, Google and Apple(along with unforeseen foreign competitors) in the future. I specifically avoided them because I thought they were a flash in the pan(well, it was also a brogrammer shop and I wanted to avoid that). I think they've proven themselves to have some staying power, but I think their current valuation, like a lot of the market, is just flat out silly.

justicezyx 6y ago
> As someone who is kicking himself every day for turning down a job with Roku a while back... Same here. I am not too bothered. Reflecting on the decision, I think the prestige of working at Google is the main reason I turned down Roku. And precisely because that Roku is a promising company, because they are focused on building a business, not building a prestige, for example, a fancy office. That's one good lesson to learn from this event. Good enough for me.

throwaway1777 6y ago

A high percentage of tvs come with roku built in now. They have benefited greatly from the stay at home trend. There was actually an acronym ZARP for this, Zoom Amazon, Roku, Peloton.

isthispermanent 6y ago

This is all useful information. Roku has always been a bit puzzling to me. Might be because I don't use it and therefore don't understand the functionality.