Shawn O’Malley and Daniel Mahnke break down Roku (ticker: ROKU), an aggregator of digital content in the world of TV streaming, with a footprint in nearly 90 million households. Roku is the gateway to streaming, and its devices have famously turned any TV into a Smart TV, but now Roku does much more than that.

In this episode, you’ll learn why the market has soured on Roku, how much its honeypot of first-party data could be worth, how Roku makes money for driving subscriptions to services like Disney+, how Roku is monetizing its uniquely positioned business, what has powered The Roku Channel’s surge toward ad-supported streaming dominance, plus so much more!

Prefer to watch? Click ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠here⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ to watch this episode on YouTube.

IN THIS EPISODE, YOU’LL LEARN

00:00 - Intro
01:34 - How Roku is a unique combination of being like a streaming service, device manufacturer, and digital advertising exchange.
03:38 - Why Roku’s financials look so poor and why the market has soured on Roku post-pandemic.
10:21 - How Roku has been able to sustain its massive market share over competitors like Amazon and Google in connected streaming.
21:24 - Why Roku’s intrinsic value is so volatile given small changes in assumptions about its future.
23:21 - What makes Roku’s founder/CEO so special.
51:07 - Why Roku may be sitting on a gold mine of digital real estate.
01:00:01 - The biggest competitive threats facing Roku.
01:08:20 - Whether Shawn and Daniel add Roku to their Intrinsic Value Portfolio.
And much, much more!

*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.

BOOKS AND RESOURCES

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• Business Breakdowns podcast on Roku.


• Roku’s Q1 2025 shareholder letter.
  


• Jim Collins' book: Good to Great.


• CEO Anthony Wood on CNBC, discussing Roku’s Q4 2024 results.


• Explore our previous Intrinsic Value breakdowns: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Uber,⁠⁠Nike,⁠ ⁠Reddit,⁠ ⁠Nintendo⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Airbnb⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠AutoZone⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Alphabet⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Ulta⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠John Deere⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, and ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Madison Square Garden Sports⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠.


• Check out the books mentioned in the podcast ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠here⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠.


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