O’keefe Stevens Advisory, an investment advisory firm, released its first-quarter 2024 investor letter. A copy of the letter can be downloaded here. Soft-landing expectations drove the S&P 500’s 11% gain in Q1. Despite geopolitical tensions, the market is cool, however, inflation is still a concern for the firm. The top five positions accounted for almost 34% of the assets held by O’keefe Stevens Advisory. In addition, please check the fund’s top five holdings to know its best picks in 2024.
O’keefe Stevens Advisory featured stocks like Roku, Inc. (NASDAQ:ROKU) in the first quarter 2024 investor letter. Headquartered in San Jose, California, Roku, Inc. (NASDAQ:ROKU) operates a TV streaming platform. On May 10, 2024, Roku, Inc. (NASDAQ:ROKU) stock closed at $57.91 per share. One-month return of Roku, Inc. (NASDAQ:ROKU) was -3.32%, and its shares gained 7.78% of their value over the last 52 weeks. Roku, Inc. (NASDAQ:ROKU) has a market capitalization of $8.685 billion.
O’keefe Stevens Advisory stated the following regarding Roku, Inc. (NASDAQ:ROKU) in its first quarter 2024 investor letter:
“Roku, Inc. (NASDAQ:ROKU) – An idea that would have seemed unthinkable just a few years back when low P/E or low multiple meant the stock was cheap. Roku is free-cash-flow positive, EBITDA breakeven, and GAAP Net Income unprofitable. Historically, investors tend to shy away from unprofitable businesses. Deeming them too risky. Roku has a $2B net cash position and is reinvesting in the business, grabbing Connected TV market share. Geographic expansion takes time and capital. They have a dominant share and have many tailwinds. Walmart’s acquisition of Vizio adds to the already heightened uncertainty. We can’t remember seeing a company with such “negative” sell-side coverage. 9 buys, 10 holds, and 4 sells. Nearly all reports discuss weighting for clarity, which is why the opportunity exists. Wells Fargo has the lowest price target at $45, or 26% downside. We see a reasonable case for a $100 stock in the near term and long term, owning a compounder with an attractive business model, secular tailwinds, and dominant market share that can translate into a desirable return over the next several years.”
A large movie theatre filled with people enjoying a film streaming on a smart TV.
Roku, Inc. (NASDAQ:ROKU) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held Roku, Inc. (NASDAQ:ROKU) at the end of the fourth quarter which was 31 in the previous quarter.
We discussed Roku, Inc. (NASDAQ:ROKU) in another article and shared the list of best streaming service stocks to buy. Cathie Wood has added Roku, Inc. (NASDAQ:ROKU) to her recent stock portfolio and Woods’ ARK Investment Management holds $818.3 million worth shares of Roku, Inc. (NASDAQ:ROKU). In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
