Diamonds and Dogs

5/9/19

Roku (ROKU) firing on all cylinders. The number 1 smart TV system is up 25% to new highs following earnings. Earnings easily beat expectations as sales rose 51% to $206.7 million, ahead of estimates. Roku added 2 million new customers to end the quarter with a totoal of 29.1 million. The company also raised guidance for the current quarter and full year. One in three TVs sold in the U.S. in the first quarter used Roku's operating system. RBC Capital Markets analyst Mark Mahaney upgraded the stock with a $90 price target. 

Stamps.com (STMP) getting stomped. The online stamp company is down 54% even though they beat earnings estimates, but then dramatically lowered guidance going forward due to potential short and long term adverse amendments, renegotiations, changes, or termination of certain contracts between the USPS and certain strategic partners who are part of the USPS's reseller program. This is the second time this year the stock has declined 50% and is down 86% since last summer. Not good.