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What happened Shares of H&R Block (NYSE: HRB) dropped 5% on Friday, following the release of the tax preparation company's fiscal third-quarter results. 

What happened Shares of AMC Networks (NASDAQ: AMCX) slipped again last month as the parent of cable networks like AMC, SundanceTV, BBC America, and IFC posted disappointing results in its fourth-quarter earnings report. The report came out the same week that stocks were plunging

Roku (ROKU) stock fell along with the overall market when news came out that the coronavirus had spread considerably beyond China. Year-to-date, Roku is down nearly 24%, and investors are still expecting a volatile ride ahead so long as the coronavirus prevails.

RBC analyst Mark Mahaney, however, believes Roku is set up for further growth in 2020, after what can only be described as a mercurial ascent in 2019, in which Roku’s share price skyrocketed by almost 350%.

The 5-star analyst reiterated an Outperform rating on Roku shares, while keeping his $170 price target intact. Should the target be met, shares could be in for a 66% twelve-month gain. (To watch Mahaney’s track record, click here)

Mahaney recently held a conference call with Roku CFO Steve Louden to discuss the company’s future prospects and plans. Let’s look at some of the analyst's key takeaways:

The Long Term Plan

Roku’s road to profitability and expansion will be driven by two factors: Active Accounts and ARPU (average revenue per user). Right now, Roku’s 37 million active accounts generate ARPU of $23 each per year.

Roku sees its long-term monetization possibilities falling somewhere between the two current existing models. The traditional cable model which generates roughly $70 ARPU and the digital/YouTube model which generates roughly $250 ARPU. This implies considerable growth potential from Roku’s current $23 ARPU. Roku also stands to take a cut of revenue from SVOD and TVOD on its platform. As far as growing active accounts, Roku believes further monetization is set to come from the untapped international market. Netflix, for example, currently draws two thirds of its subscribers from foreign markets. Roku is only at the beginning of its international; expansion, indicating there’s massive room for growth.

The International Opportunity

Roku is currently available in one form or another in 20 countries. Mahaney goes on to count the ways Roku has an advantage when entering new markets: “a) Roku benefits from having a purpose-built TV streaming OS that translates into a BOM (bill of materials) cost advantage for OEMs (original equipment manufacturers) ; b) Roku is a neutral advertising platform, unlike Google or Amazon; c) Roku’s UI is easy to use and thus conducive to the TV experience; and d) ROKU has significant expertise in free ad-supported TV.”

The Roku Channel

Roku has another card up its sleeve, in the form of the Roku Channel. With 56 million viewers, more than 10000 movies, 40 subscription channels, and 55 linear channels, it is one of the top five apps on Roku. According to Mahaney, Louden noted that further investment is expected in content, product development and category expansion, amongst others.

Conclusion

Looking at the macro element of the story, Roku is in an enviable position where it stands to gain whether the coronavirus has a longer lasting impact on the economy or not. Should the virus abate, and the economy pick up, people will be upgrading to faster internet speeds to watch Roku’s ever-growing number of streaming services. Should the coronavirus spread any further, more people will be staying in to watch Roku content. Win-win.

Looking at the consensus breakdown, Roku’s 6 Buys, 2 Holds and 2 Sells coalesce into a Moderate Buy consensus rating. The average price target comes in at $150.56 and implies additional upside of nearly 50%. (See Roku stock analysis on TipRanks)

(RTTNews) - The Canadian stock market ended sharply lower on Friday as worries about the economic impact of the coronavirus outbreak, and a sharp plunge in crude oil prices triggered a sell-off across the board.

Ardelyx (ARDX) came out with a quarterly loss of $0.28 per share versus the Zacks Consensus Estimate of a loss of $0.34. This compares to loss of $0.45 per share a year ago. These figures are adjusted for non-recurring items.

Utilities are safe investment options as these are mostly regulated and remain more or less steady in the face of economic fluctuations. These stocks thus provide investors with stable earnings and performance along with regular dividend.Utilities are interest rate sensitive as

What happened Shares of performance-monitoring company New Relic (NYSE: NEWR) were down 14.8% in February, according to data provided by S&P Global Market Intelligence. The stock started falling from a lackluster earnings report on Feb. 5, and once Wall Street became volati

Consumers are going to see a curious new look on shelves at some shoe stores before the end of the month. Denim company Levi Strauss & Co. (NYSE: LEVI) has collaborated with shoe brand New Balance to make what it's calling an "authentically American sneaker." That is, a spec

President Donald Trump has signed an appropriations bill that allocates $8.3 billion to various arms of the federal government to fight the spread of SARS-CoV-2, the coronavirus that causes COVID-19. Trump's ratification of the Coronavirus Preparedness and Response Supplemental

What happened Shares of ANGI Homeservices (NASDAQ: ANGI) took a hit last month as the online home-improvement marketplace posted underwhelming fourth-quarter results at the beginning of the month and then fell on coronavirus fears toward the end of February. According to data

What happened Shares of JPMorgan Chase (NYSE: JPM) declined by 5% on Friday, after news broke that CEO Jamie Dimon required an emergency heart operation. 

Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which

Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which

Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which

Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which

Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which

The stock market lost ground on Friday, closing another tough week for major market benchmarks. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite saw their corrections deepen, having fallen nearly 15% from their respective highs less than a month ago.

(RTTNews) - After falling sharply early in the session, stocks remained firmly negative throughout most of the trading day on Friday but staged a notable recovery attempt going into the close. The major averages significantly pared their losses but still closed sharply lower.

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