StockStory Backs Roku at $124, Flags Match and LendingTree as Sells
Updated
Updated · Financial Content · May 19
StockStory Backs Roku at $124, Flags Match and LendingTree as Sells
2 articles · Updated · Financial Content · May 19
Summary
Roku was singled out as the buy call, with shares at $124.34 and StockStory arguing its streaming scale and improving profitability give it a durable edge.
31.8% annual EPS growth and a 25-point jump in free-cash-flow margin underpinned that view, while rising total hours streamed suggest Roku can add revenue without matching customer-acquisition costs.
Match Group was tagged a sell as competition erodes its dating platforms: payers fell 4.5% annually, average revenue per user dropped 12.1%, and sales are projected to slip 1.1% over the next year.
LendingTree also landed on the sell list because heavy marketing spending points to costly customer acquisition, even with the stock valued at just 0.4x forward price-to-gross profit.
The calls come as consumer internet stocks have fallen 13.2% over six months, badly lagging the S&P 500's 11.6% gain and sharpening the focus on companies that can keep growing through weaker spending.