2 Cathie Wood Stocks Down 20% or More to Buy on The Dip

Roku is also disrupting an industry. The company is helping redefine the way we entertain ourselves in front of the television — and other screens, for that matter. It’s no secret that people are increasingly ditching cable in favor of streaming. Roku is helping facilitate the switch through its platform, which is home to most of the leading streaming services. Roku’s primary business isn’t to compete directly with streaming services — it’s merely to provide a platform for them to reach viewers.

The company’s ecosystem has grown considerably. It now boasts nearly 90 million streaming households and facilitates well over 100 billion viewing hours annually. Naturally, Roku has become a favorite target for advertisers who follow viewers wherever they go. True, the company has encountered some issues in recent years. It is not yet consistently profitable, while key metrics, including average revenue per user, have stalled. There is a good reason for that, though.

Roku has never been hesitant to sell its namesake hardware devices at a loss because once consumers find their way into its ecosystem, it can more than make up for its less-than-profitable hardware business. Roku has become the leading connected TV company in regions like North America and Mexico through this strategy, which it is now implementing in other markets.

And just as its monetization efforts eventually ramped up in North America, they also will elsewhere. Roku’s prospects look attractive, especially considering the whitespace available in the streaming market. Investors should strongly consider buying the stock while it is still down.

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Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Block and Roku. The Motley Fool has a disclosure policy.

2 Cathie Wood Stocks Down 20% or More to Buy on The Dip was originally published by The Motley Fool