Roku Stock May Rebound From Easing Supply Chain Issues

Supply Chain Impact to Roku Stock and Ad-tech Going Forward

Below, we discuss why Roku stock could be set to rebound when supply chain issues begin to ease due to extreme oversold conditions based on transient headwinds. We also discuss more in depth the supply chain rebound we are forecasting for some time around the second half of 2022.

Chart: 50-year Trend of Changes in Private Inventories
Chart: Roku’s valuation and forward estimates

More Data Supports Supply Chain Issues Easing in Q3

Please reference our first article “Supply Chain Issues Could Recover In Q3 2022for additional data points.

Chart: Aggregate Automotive Raw Materials to Inventory Ratio
Chart: Aggregate Automotive Work-in-Process to Inventory Ratio
Chart: Aggregate Automotive Finished Goods to Inventory Ratio

Automotive semiconductor OEMs report rising inventories and increasing capex

IHS Markit estimated that North American vehicle production in 2021 increased just 1% YoY to 13.1 million. In 2022, vehicle production is expected to rebound and increase 13% YoY to 14.7 million units in 2022 but remain below the 15 million vehicles produced in 2019.

Chart: Raw Material Inventories for Automotive Semiconductor Producers
Chart: TTM Capex from Automotive Semiconductor Producers



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Beth Kindig

Beth Kindig

CEO and Lead Tech Analyst for the I/O Fund with cumulative audited results of 141%, beating Ark and other leading active tech funds over four audit periods in 2