Amazon's New TVs Are No Threat to Roku
A cruel summer for Roku (NASDAQ: ROKU) investors seemed to get worse last week when Amazon.com (NASDAQ: AMZN) introduced a new line of Fire TV flat-screens. Priced aggressively -- starting at $369.99 -- the Alexa-fueled HDTVs that include the first-ever sets built by Amazon itself are going to sell well in the coming months. The question here is if they will take market share from Roku or if the migration will be limited largely to folks who don't have a dedicated smart TV just yet.
Roku stock has been retreating on the news, and it's easy to see why at first. Amazon is a monster that isn't afraid to subsidize hardware to gain new users. "Your margin is my opportunity," is one of Amazon founder and former CEO Jeff Bezos' most enduring quotes.
However, a couple of analysts did step up after the Amazon announcement to back up Roku's market position. It may seem like a normal defense mechanism for Roku-bullish Wall Street pros to come to the streaming media pioneer's side, but their arguments do make sense.
Source Fool.com
