About Spanish Broadcasting System (SBS) Premier Latino Audiovisual Entertainment Destination to Reach Millions of Spanish-Speaking Viewers MIAMI, June 9, 2025 /PRNewswire/ -- Spanish Broadcasting System, Inc. (SBS), the largest Hispanic- controlled media and entertainment company in the United States, today announced that LaMusica, its top- ranked audiovisual entertainment app, will begin livestreaming as LaMusica TV on The Roku Channel. This summer, millions of Roku's Hispanic customers in the U.S. and Mex ...

Core Viewpoint - The market is recovering, but Roku's stock is significantly down, trading 84% below its peak from July 2021, raising questions about its long-term investment potential [1] Group 1: Industry Trends - The internet is reshaping industries, particularly in streaming entertainment and digital advertising [3] - Roku benefits from these trends by providing a platform that aggregates content, holding a top market share among smart TV operating systems in North America [4] Group 2: Company Performance - Roku reported a 16% revenue increase in Q1 2025, following an 18% growth in 2024, with 89.8 million memberships at the end of last year [5][6] - 86% of Roku's Q1 2025 sales came from its platform segment, which includes advertising revenue [6] Group 3: Financial Situation - Roku generated $242 million in net income in 2021, but has reported cumulative net losses of $866 million over the past nine quarters [8] - The company has a strong balance sheet with $2.3 billion in cash and no debt, reducing financial risk [9] Group 4: Valuation and Competitive Landscape - Roku's stock trades at a price-to-sales ratio of 2.7, which is 69% below its historical average, indicating a compelling valuation [10] - The competitive landscape includes major players like Alphabet, Amazon, and Apple, which poses challenges for Roku [11] Group 5: Long-term Outlook - Roku has the potential for significant growth due to its valuation, industry position, and growth prospects, making it a candidate for long-term investment [12]

Group 1: Roku - Roku's revenue increased by 16% year over year to $1 billion in the first quarter, with streaming hours reaching 35.8 billion, up 5.1 billion from the previous year [3][4] - The platform revenue, which includes ad-related sales, grew by 17% year over year, while the device segment saw an 11% increase [4] - Roku reported a net loss per share of $0.19, an improvement from the $0.35 loss in Q1 2024 [4] - The company is focusing on deepening engagement within its ecosystem, which is seen as a long-term opportunity despite potential tariff-related challenges [5] - Roku's forward price-to-sales ratio is 2.3, indicating reasonable valuation, and it is suggested that long-term investors consider holding the stock [7] Group 2: MercadoLibre - MercadoLibre is the leading e-commerce platform in Latin America, successfully competing against local and international players [8] - The company's net revenue increased by 37% year over year to $5.9 billion, with net income rising by 43.6% to $494 million [9] - The stock has increased by 48% this year, reflecting strong performance metrics [9] - MercadoLibre's forward price-to-earnings (P/E) ratio is 52.2, which is nearly double the consumer discretionary sector average of 27.9 [10] - Despite potential economic instability from trade policies, long-term growth in the e-commerce market in Latin America positions MercadoLibre favorably for future revenue and profit growth [11]

Group 1 - The article discusses the potential for investors to identify undervalued stocks that are mispriced by the market as the second quarter comes to an end [1] - It suggests that joining a specific investment platform, Out Fox The Street, may provide insights on positioning in these stocks [1] Group 2 - There are no specific companies or stocks mentioned in the article, and it emphasizes the importance of conducting personal research before making investment decisions [2][3][4] - The article does not provide any financial advice or recommendations regarding the suitability of investments for individual investors [4]

Core Viewpoint - Roku (ROKU) has reached a significant support level and shows potential for investors from a technical perspective, having recently broken through the 200-day moving average, indicating a long-term bullish trend [1]. Technical Analysis - The 200-day simple moving average is a critical tool for establishing long-term market trends for various financial instruments, including stocks [2]. - ROKU has experienced a rally of 21.6% over the past four weeks, and currently holds a Zacks Rank of 2 (Buy), suggesting it may be poised for further upward movement [2]. Earnings Estimates - The bullish outlook for ROKU is reinforced by positive earnings estimate revisions, with no estimates decreasing in the past two months and eight estimates increasing, leading to a rise in the consensus estimate [3]. - The combination of favorable earnings revisions and the achievement of a key technical level positions ROKU as a stock to watch for potential gains in the near future [3].

Core Viewpoint - Roku is positioned as a stronger player in the streaming market compared to Comcast, with significant growth in platform revenues and user engagement, while Comcast's Peacock is still facing profitability challenges and requires heavy investment to remain competitive [10][20][21]. Roku's Performance and Strategy - Roku's platform revenues increased by 17% year over year to $881 million, driven by growth in video advertising and streaming service distribution [3]. - The Roku Channel became the 2 app in the U.S. based on engagement, with streaming hours increasing by 84% from the previous year [4]. - Roku's user base exceeds half of all U.S. broadband households, with over 125 million daily users engaging with its Home Screen [3][5]. - The company focuses on enhancing content discovery and user experience, integrating Roku Originals and popular subscription services into its ecosystem [5]. Comcast's Performance and Strategy - Comcast's Peacock achieved double-digit revenue growth and reduced year-over-year losses by over $400 million, reaching 41 million paid users by the end of the quarter [6][9]. - Peacock's content strategy includes a diverse mix of programming, including NBCUniversal originals and live sports, aimed at attracting a broad audience [7]. - Despite subscriber growth, Peacock remains unprofitable, with total advertising revenues declining due to various factors, including the timing of sports events [8][9]. Comparative Analysis - Roku's stock has shown relatively strong investor sentiment, with a 12.4% decline over the past six months compared to Comcast's 20.2% decline [11]. - Roku's forward 12-month price-to-sales (P/S) ratio is 2.26X, indicating higher investor confidence in its growth potential compared to Comcast's 1.04X [14]. - Earnings estimates for Roku indicate a narrowing loss of 17 cents per share for 2025, with projected revenues of $4.55 billion, reflecting a year-over-year growth of 10.54% [17]. - In contrast, Comcast's earnings estimate for 2025 is $4.35 per share, with projected revenues of $122.07 billion, indicating a year-over-year decline of 1.35% [18][19]. Conclusion - Roku is expected to be the stronger investment choice for 2025, with rising revenues and improved engagement metrics, while Comcast's Peacock is still in a developmental phase and faces uncertainty regarding profitability [20][21].

Market Overview - The current market is described as jittery, with major indices experiencing significant volatility due to recent trade developments [1] - It is characterized as a stock-pickers' market, emphasizing the importance of careful stock selection for long-term investors [1] Analyst Background - Gary Alexander has extensive experience in covering technology companies on Wall Street and has worked in Silicon Valley, providing insights into industry trends [1] - He has been a contributor to Seeking Alpha since 2017 and has been quoted in various web publications, with his articles reaching popular trading apps like Robinhood [1]

Core Viewpoint - Roku's long-term outlook remains strong despite recent share price pressure, driven by growth in platform revenues, user engagement, and advertising innovation [16][17]. Group 1: Share Performance and Market Context - Roku shares have declined by 10.3% over the past three months, underperforming the Zacks Consumer Discretionary sector and the Zacks Broadcast Radio and Television industry's growth of 2.6% and 14.4%, respectively [1]. - Investor concerns regarding potential tariff impacts on Roku's Devices segment have contributed to the decline in share price [1]. Group 2: Manufacturing Strategy and Tariff Mitigation - Roku employs a diversified manufacturing strategy across multiple countries, providing agility and flexibility to mitigate tariff effects [2]. - The company has made minor price adjustments and does not anticipate significant changes to gross profit in the Devices segment, even if TV prices rise due to tariffs [2]. Group 3: Acquisition of Frndly TV - Roku announced the acquisition of Frndly TV on May 2, aiming to expand its subscription offerings and enhance user engagement [5]. - The acquisition is expected to be EBITDA-margin accretive in its first full year, indicating financial upside and strategic value [6]. Group 4: Advertising Business Growth - Roku's ad-supported streaming business has shown strong momentum, with platform revenues growing 17% year over year to $881 million [9]. - The Roku Channel has become the 2 app on the platform by engagement, with streaming hours increasing by 84% year over year [10]. Group 5: Financial Guidance and Performance Metrics - For 2025, Roku reaffirmed its guidance for platform revenues of $3.95 billion and adjusted EBITDA of $350 million, with a platform gross margin expected to be around 52% [11]. - The Zacks Consensus Estimate for 2025 total revenues is $4.55 billion, suggesting a year-over-year growth of 10.54% [12]. Group 6: Valuation and Investor Confidence - Roku's price-to-cash flow ratio is 33.94X, slightly above the industry average of 32.98X, reflecting investor confidence in the company's growth potential [13].

Economic Indicators - The U.S. Consumer Confidence Index rebounded to 98 in May, significantly above the Zacks Consensus Estimate of 86, after five months of decline [1] - The Present Situation Index rose to 135.9 in May from 131.1 in April, while the Expectations Index climbed to 72.8 from 55.4, although it remains below the recession threshold of 80 [4] - 44% of respondents expect stocks to rise over the next 12 months, up from 37.6% in April, and 19.2% expect more jobs in the next six months, compared to 13.9% in April [5] Consumer Discretionary Stocks - Investment in consumer discretionary stocks is expected to be fruitful, with five stocks highlighted: Netflix Inc. (NFLX), The Walt Disney Co. (DIS), Charter Communications Inc. (CHTR), Roku Inc. (ROKU), and Roblox Corp. (RBLX), all carrying a Zacks Rank 2 (Buy) [3] Netflix Inc. (NFLX) - NFLX beat the Zacks Consensus Estimate for earnings in Q1 2025, maintaining healthy engagement levels despite trade-related challenges [8] - The company launched its Ad Suite in the U.S. on April 1, with plans for international expansion, which is expected to drive subscriber and ARPU growth [9] - NFLX has an expected revenue growth rate of 14% and earnings growth rate of 27.7% for the current year, with a 3% improvement in the Zacks Consensus Estimate for earnings over the last 60 days [11] The Walt Disney Co. (DIS) - DIS reported steady Q2 fiscal 2025 results with year-over-year revenue and earnings growth, driven by domestic parks and experiences [12] - The company expects double-digit percentage operating income growth in fiscal 2025, with ESPN achieving significant viewership growth [13] - DIS has an expected revenue growth rate of 3.8% and earnings growth rate of 15.1% for the current year, with a 4.6% improvement in the Zacks Consensus Estimate for earnings in the last 30 days [15] Charter Communications Inc. (CHTR) - CHTR's Q1 performance benefited from a 33.5% year-over-year increase in mobile service revenues, adding 514K new mobile lines [16] - The launch of satellite-based services through a collaboration with Skylo is expected to drive growth [17] - CHTR has an expected revenue growth rate of 0.3% and earnings growth rate of 13.2% for the current year, with a 5.1% improvement in the Zacks Consensus Estimate for earnings in the last 30 days [19] Roku Inc. (ROKU) - ROKU benefits from increased user engagement, with the Roku OS being the 1 selling TV OS in the U.S. and streaming hours on The Roku Channel up 82% year over year [20] - The company has an expected revenue growth rate of 10.5% and earnings growth rate of 80.9% for the current year, with a 39.3% improvement in the Zacks Consensus Estimate for earnings in the last 30 days [21] Roblox Corp. (RBLX) - RBLX operates an online entertainment platform, offering tools for users to explore and create 3D digital worlds [22] - The company has an expected revenue growth rate of 22.5% and earnings growth rate of 2.1% for the current year, with a 4.1% improvement in the Zacks Consensus Estimate for earnings in the last 30 days [23]

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Roku (ROKU), and suggests that while the average brokerage recommendation (ABR) indicates a favorable outlook, investors should be cautious and validate this information with other tools like Zacks Rank [1][5][10]. Group 1: Brokerage Recommendations - Roku has an average brokerage recommendation (ABR) of 1.91, which is between Strong Buy and Buy, based on recommendations from 30 brokerage firms [2]. - Out of the 30 recommendations, 16 are Strong Buy and 2 are Buy, accounting for 53.3% and 6.7% of all recommendations respectively [2]. - Despite the positive ABR, studies indicate that brokerage recommendations often do not effectively guide investors towards stocks with the highest potential for price appreciation [5][10]. Group 2: Limitations of Brokerage Recommendations - Brokerage firms often exhibit a strong positive bias in their ratings due to vested interests, leading to a disproportionate number of Strong Buy recommendations compared to Strong Sell [6][10]. - The interests of brokerage firms may not align with those of retail investors, providing limited insight into future stock price movements [7][10]. Group 3: Zacks Rank as an Alternative - Zacks Rank categorizes stocks into five groups based on earnings estimate revisions, which have shown a strong correlation with near-term stock price movements [8][11]. - The Zacks Rank is a quantitative model that differs from ABR, as it is based on earnings estimates rather than brokerage recommendations [9]. - The Zacks Rank is updated more frequently than ABR, making it a timely tool for predicting future stock prices [12]. Group 4: Roku's Earnings Estimates - The Zacks Consensus Estimate for Roku has increased by 39.2% over the past month to -$0.17, indicating growing optimism among analysts regarding the company's earnings prospects [13]. - This increase in consensus estimates, along with other factors, has resulted in a Zacks Rank 2 (Buy) for Roku, suggesting a positive outlook for the stock [14].