Roku opens its IPO at $14 in September 2017 and manages to generate $1.3 billion dollars in stock market values.
Roku is a California based digital sharing company known for its video streaming devices. The devices enable users to access Netflix, Amazon, YouTube, and dozens of online channels.
Roku competes with other streaming devices such as the Apple TV and the Amazon Fire TV stick. However, popular opinion holds that Roku is the best bet.
The reason for Roku’s popularity can be put down to the fact that it does not discriminate between apps. While Amazon’s Fire stick promotes Amazon’s products and Apple TV promotes Apple’s, Roku remains unaffected. Thus viewers have access to every company’s product. It is up to them to decide which app they prefer.
Roku considered filing for an IPO in 2014, but later decided to wait. The company finally took the step in 2017 and set its IPO price at $14 per share.
This is a relatively low number when one considers that other companies have opened IPOs at much higher rates. For instance, General Motors set its IPO rate at $33 in 2009 while Facebook opened in 2012 at $38.
Roku’s goal was for the IPO revenue to reach $1billion. The company has surpassed its own expectations with stock market values estimating closer to $1.3 billion.
However, Roku’s competitors Amazon and Apple set prices closer to its own. Amazon opened in 1997 at $18 and Apple opened at 1980 at $22.
The company generated $199.7 million in revenue between January and June of 2017. The company saw a 23 period jump from same the time period in 2016. The company’s loss during that stretch narrowed from $33.2 million to $24.2 million.
The company has raised over $200 million in private funding so far.