Roku spikes more than 10 percent on opening day of trading

Roku Roku TV IPO

The 15.7 million shares were priced at United States dollars 14 each, the top of the USD 12-14 price range. Its fiscal 2016 revenue of $398.6 million was up 25% from the $319.9 million in fiscal 2015.

Roku's S1 filing reveals that the video and audio streaming device company now has 15.1 million active accounts, up 43 percent from a year ago. And in the first six months of this year, revenues were $199.7 million, representing a 23% jump from the year-ago period. But the Los Gatos, Calif. -based company still loses money: It posted a net loss of $42.8 million in 2016, steeper than the $40.6 million the year before.

Snapchat owner Snap Inc (SNAP.N), and meal-kit delivery company Blue Apron Holdings Inc (APRN.N), which listed in the first-half of the year are trading well below their listing prices.

Roku was one of the first companies to make a device that lets users stream content from Netflix, Hulu, Amazon Prime, and Youtube to their TV sets. According to its IPO prospectus filed last month, the company hopes to increase the number of hours streamed by each user, and then monetize those hours through advertising.

Roku is poised to capitalize on the popularity of streaming content.




Similar concern is being raised about Roku the next tech company in line for an IPO on Thursday.

Roku is best know for selling low-priced boxes that allow consumers to stream Netflix, YouTube and other streaming video services to their televisions.

"We are in a golden age of TV", Roku said in its prospectus. That gives its users more choices for apps rather than being force fed Apple, Amazon or Google content. Roku's offering, on the other hand, plays nice with whatever service you want to watch.

Even though CEO Wood isn't anxious about his company's ability to compete, investors will have to decide if Roku's market share and option-oriented platform are enough to set the streaming device maker apart. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

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