Is ROKU a Great Long-Term Investment?

LRT Capital Management, an investment management firm, published its third-quarter 2021 investor letter – a copy of which can be downloaded here. A return of -6.71% was recorded by the LRT Economic Moat strategy for the month of November 2021, extending its 12-month returns to +23.06%. Year-to-date, LRT Capital was able to post a gain of +17.91%. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

LRT Capital Management, in its Q3 2021 investor letter, mentioned Roku, Inc. (NASDAQ: ROKU) and discussed its stance on the firm. Roku, Inc. is a Los Gatos, California-based traded company with a $30.8 billion market capitalization. ROKU delivered a -30.95% return since the beginning of the year, while its 12-month returns are up by -30.71%. The stock closed at $229.25 per share on December 10, 2021.

Here is what LRT Capital Management has to say about Roku, Inc.  in its Q3 2021 investor letter:

“Roku, Inc. (ROKU) – the streaming TV company is currently trading at the lowest valuation it has been in many years, despite reporting 50% revenue growth, and over 80% growth in its most important and profitable “Platform” segment. Ostensibly the risk of increased competition is weighting on the stock, in practice we believe Roku’s recent underperformance has more to do with it being the 4th largest holding in Cathy Wood’s ARKK ETF, which has been hammered by outflows in recent weeks. We wrote about Roku in our July Investor Letter.”

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Based on our calculations, Roku, Inc. (NASDAQ: ROKU) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. ROKU was in 57 hedge fund portfolios at the end of the third quarter of 2021, compared to 61 funds in the previous quarter. Roku, Inc. (NASDAQ: ROKU) delivered a -30.17% return in the past 3 months.

Earlier this year, we also shared another hedge fund’s views on ROKU in another article. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.

Disclosure: None. This article is originally published at Insider Monkey.