Is Latch the Next Roku?
Smart-lock and real estate software company Latch's (NASDAQ: LTCH) business model holds one fundamental commonality with digital media player manufacturer and streaming platform Roku (NASDAQ: ROKU): Both companies seek to derive growth from operating lucrative subscription services tied to the devices they manufacture and sell.
However, an earnings miss and delays on product implementation led to Latch's stock price falling by close to 25% on the trading day after its Feb. 24 earnings report. Now, with Latch stock down more than 70% from its 52-week high, can its subscription service help the stock become the next Roku, or should investors avoid the SaaS stock?
Image source: Latch.
Source Fool.com
