Roku IPO is Gopro & Fitbit 2.0

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Well i didn’t even want to have to do a roku video i really didn’t but you guys in that comment section i’ve been asking about this roku ipo and should you buy in and this and that so i’m like i really got looking into this company i’m looking into this roku company and boy do i not like what i see guys i was looking into and i was like i need to short this i

Haven’t shorted it because i hate to short stocks and i might not short it but i’m like dude i can make so much money short and stock if i actually had the cojones to do it okay so let’s talk about roku and why it reminds me it’s like it reminds me literally of gopro and fitbit.fitbit 2.0 it honestly it reminds me so much of gopro and fitbit when they went public

It is like sick guys it is absolutely sick so first off let’s look at how these stock price has done so roku just went public last week his stock was winless it was supposed to come out at $14 it shot up to $29 over $29 a share like that over double like so fast it was ridiculous guys oh you know what there was another stock that went up superfast whose name was

Gopro gopro came public around $24 a share four months later yes four months later it was at $98 a share $98 year by the way gopro is $11 stock now so we can have to see what’s happened there fitbit okay this company i cannot remember the specific price that came out i think it was around $17 okay this stock went to $50 over $50 in a very rapid pace now it’s a $6

Stock okay so we’re just off the stocks you can kind of see that some of these hardware tech companies that go public that are tech they can be hot they can go up just because they go up in the short term does not mean they’re crate investments long term believe me so a lot of traders that play with these and they feel like they can make some money they push it up

Then they short it and then maybe they go long again then they short it again down to whatever price okay so let’s see some similarities that are with all these companies okay first off roku what is it it’s a hardware company at the end of the day that’s the main business they sell they sell those little roku devices they have a few different models of them if you

Go on amazon best sellers on the electronic section you’ll see several roku devices on there they are a hardware company that is the main way they make their income our name say income the main way they make their revenue go pro it was the same deal go pro all they sold was cameras back then they didn’t even sell they didn’t sell drones or vr cameras or anything

That stuff they get into now all they sold was basic cameras they just came out with the hero4 silver right after they had went in public and the hero4 silver or the hero4 black and the hero4 silver they had just come out with those right after they went public and that was basically their entire business that’s all they did was just sell those those hero force fit

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Better same thing there’s a hardware company they even have smartwatches when they went public they just sold those basic you know bands and a few different models and whatnot they kept track your polls in your heart rate and all that good stuff guys fitbit hardware company that’s how they made all their money and that’s still how they make all their money too no

Let’s talk about let’s go down from here from the the bottom and go up now there was promises about there can be something better than just a hardware company okay and all three of these companies were kind of selling the dream that were more than a hardware company were more than a hardware company okay fitbit sold the dream that it could be in a major apps player

Maybe they could even sell apps or something like that they would be so big in the healthcare space that maybe insurance companies would like force people to get fitbit’s and whatnot it’s a really tough sell and guess what they do have a great app it’s a free app that comes with fitbit so although it’s really good they don’t make any money off that in the end and

Then the go pro they sold the dream that they’re gonna be a media company a huge media company they sold that dream they sold that dream we’re gonna be a media company well the issue is gopro is a media company but they’re not a media company in the sense of they’re a multi billion dollar media company they haven’t created like a disney or something like that they

Have huge fan bases here on youtube on instagram and twitter like you can look on any major platform there’s a million gopro followers or 10 million plus gopro followers you know if you combine them all up and that’s that’s worth something absolutely but it’s not worth billions of dollars people thought that was going to transform them into like a multi-billion

Dollar business or whatever it’s just a great place to advertise and sell your products to your fan base and keep them excited about the types of things you sell it’s not worth billions of dollars absolutely not but some people thought wow gopro is gonna become a billion-dollar media company no absolutely not and that’s part of the reason why the stock shot up to

$98 and i was just watching i’m just like people have no clue what’s going on out there and then roku they sell the dream of you know we’re just gonna keep selling products and services through the roku devices so if you buy a movie or buy a show or or whatever you rogue who makes money on that and then that’s their dream right now and that’s what’s growing a lot

For roku but there’s some issues with that work they get to in just a second oh why that dreams a little bit of a false dream as well okay so let’s start from here at the bottom what did what issues did these these stocks come into the ewald fitbit and gopro what issues did they come into and what do i see for seed for roku having issues well fitbit ran into apple

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All of a sudden apple watch came out right around two years ago maybe two and a half years ago it might have been now and ever since then for roke therefore a fitbit it’s just been a downward spiral guys you it’s so hard to compete with apple especially if it’s a category that apple is competing very seriously on if apple really cares about that which apple does

You go into any apple store go into any apple store and see what the the things are at the very front of the store in huge glass cases that go along the very middle of the store the main walkway what are they they’re apple watches apple cares tremendously about the apple watching getting sales up there guys and fit is a direct competitor to them that’s tough it is

Tough to compete with apple man answers that samsung one of the most powerful companies in the entire world one of the most profitable companies in the entire world samsung knows how hard it is to compete with apple fy samsung can’t even move as many you know tablet units as i see em some can’t even move as many high-end smartphones on the lower end samsung does

Great on the high end you know with the galaxy devices and the notes they don’t they don’t outsell apple devices so you know ask them about how hard it is compete with apple nevermind a company as small as fitbit that’s a tough that’s a things go program into the problem of there’s only so many people that want to buy gopros there’s only so many so in at that time

When they would ipo they didn’t have any other products like i said they didn’t have drones didn’t have vr cameras they didn’t have apps they didn’t have anything else man and their accessories are even limited at that time they didn’t have handheld gimbals earning that stuff so they were they were just a camera company that’s all they had to sell was those little

Cameras and if they even sell that they had nothing else to sell it another day and there’s only so many people that want to buy that maybe there’s only 3 to 5 million people a year who watch you want to buy a gopro camera so that’s fine now that the stock is way down here but when it was $98 it’s not so oh ok ok and roku what’s the issue with roku what do i see

Roku running into here well tvs smart tvs almost every tv out there also it has all these apps already installed in them even a lot of them even have systems where you can actually buy movies and stuff through the apps now so that’s a huge competitor i mean i have 2013 vizio smart tvs laying down there on the floor which i never even used while it’s laying down

There on the floor and that tv was ahead of its time you know that was like really cool with 2013 to have a smart tv now it’s like just commonplace for the tvs to be smart tvs and have netflix and all these at different apps installed another issue roku has their direct competitor with apple apple is taking the apple tv more and more serious over the last couple

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Years it was kind of like just a little pet project for them you know prior to about two years ago now they’re taking up way higher levels so they’re directly competing with apple and guess what happens when you directly compete with apple usually not good things for you usually not good things and roku devices hardware devices sales work she down through the

First six months this year down guys so not only are there already going down so that is a really bad sign guys it’s not fun to compete with apple especially directly now let’s talk about where these companies i’m actually making any money where the making profits or taking losses well on fitbit’s case and we’re profitable they were actually making money on the

Bottom line same thing with gopro they were profitable they were actually making money on the bottom line roku has never made a profit in its 15 years of in the existence never made a profit always unprofitable always unprofitable and i feel like their business is gonna get tougher and tougher as time goes on guys that’s not such a good sign so as we see here

Roku is just one of those stocks that absolutely i will not be buying i can’t see myself buying this for any reason unless somehow they come out with something that’s not directly related to something they already have and that exists already and maybe it’s something so exciting but i cannot see myself buying that stock well as short it probably not because i get

Scared of shorting stocks sometimes i buy put options on stocks but because of ipo there’s very little put option action even out there so that’s probably not that interesting to me if it did skyrocket up again i probably would short at some point because it was just the insane guys but we can see like this is literally gopro and fitbit 2.0 it literally is guys in

Stock – you know flew up here and it’s just it’s a hardware company then a day and i just think their business is gonna get tougher and tougher so maybe there’s value about that somewhere but it sure as heck is not in the 20s it’s not even at what it went ipo doubt in my opinion because you got remember when companies don’t like i’ll always remember this they’re

Usually overvalued 100% almost 100% of the time like 99.9% time that’s why i never ever buy an ipo yeah you can maybe make a great game but you if you’re a fundamental investor you don’t buy overpriced companies that’s what they are when they go public they’re already overpriced because who’s gonna go public without an overpriced valuation no one you were just a

Private company have done it today guys so i hope you enjoyed learning about roku and kind of how it’s you know gopro and fitb fitbit 2.0 thank you for watching guys and have a great day

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Roku IPO is Gopro & Fitbit 2.0 By Financial Education

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