How to invest in Roku

The growth of this stock has been impressive, but is now the right time to buy?

To answer this question, we need to assess both the stock market trend and the company’s revenues and profits. After reading our guide, you will have all the necessary information to decide on this investment.

How to invest in Roku? Here are the three steps to follow:

Register with a CFD broker such as eToro.

Select Roku stock.

Click on Buy to go long (or on Sell to go short).

This guide will not only provide you with the data needed to evaluate the investment, but also suggest the best broker to use for buying Roku shares safely and intuitively, even for beginners.

Why invest in Roku

Roku is listed on the Nasdaq, but this is not a barrier for those who want to buy Roku shares.

Direct purchase:
Buying shares directly is one of the most common investment methods, but also one of the most limited.

The reasons are:

Economic: People usually turn to bank brokers, which charge rather high fees (especially for traders with small capital).

Operational: Direct investment allows you to profit only if the stock price rises.

A solution to overcome the first disadvantage is to use eToro to purchase real shares. The broker (which we will analyze in detail later) allows the direct purchase of stocks on its platform under more favorable conditions compared to bank brokers.

3 Solutions

The best way to choose among these 3 solutions is to use the free demo accounts offered by these brokers. This way, you can evaluate the features, trading platforms, and services offered before depositing real money.

Once you have chosen, to invest in Roku stocks, you just need to:

Buy Roku to profit from a stock price increase.

Sell Roku CFDs to profit from a price decrease.

Once your target is reached, you can close the trade and cash in your net profits without paying any commission.

Is it worth buying Roku shares?

The year 2022 was very positive for Roku, with the streaming platform’s shares rising by over 130% during the year, outperforming both the Nasdaq and the S&P 500.

The platform recorded a strong increase in usage, partly due to COVID-19 lockdown measures, and investors were rewarded.

However, with this very high valuation (Roku has a price-to-earnings ratio of 25), the company must find new ways to monetize its platform.

Between 2020 and early 2021, Roku reported 46 million active accounts, up 43% compared to the previous year, and 14.8 billion streaming hours on its platform, up 54%.

These high double-digit growth rates show how quickly the company is becoming essential in the streaming platform landscape.

Currently, Roku holds about 49% of the streaming device market, beating Chromecast, Amazon Fire TV, and Apple TV.