Can Roku’s Revenues Double By 2020?

Can Roku’s Revenues Double By 2020?

Municipal bond funds are great for beginning investors because they provide diversified exposure without the investor having to analyze individual bonds. According to the Financial Industry Regulatory Authority (FINRA), muni bonds may be bought individually, through a mutual fund or an exchange-traded fund (ETF). You can consult with a financial adviser to find the right investment type for you, but you may want to stick with those in your state or locality for additional tax advantages. However, like other mutual funds, the fund itself is not government-backed and is subject to risks like interest rate fluctuations and inflation. If interest rates rise, prices of existing bonds drop; and if interest rates decline, prices of existing bonds rise.

The lower the P/E the better the value, but be careful to only compare similar companies. Indeed, Roku has repeatedly raised its full-year gross profit target this year as previous platform investments are paying off nicely. Currently, Roku expects full-year gross profit to be between $489 million and $494 million. Not only is this up from $332 million in 2018, but it's also well above management's initial outlook for 2019 gross profit to be between $445 million and $460 million.

But it's been quite a bumpy ride, as investors have puzzled over the streaming company's future. Lower interest rates put upward pressure on stock prices for two reasons. First, bond buyers receive a lower interest rate and less return on their investments. It forces them to consider buying higher-risk stocks to get a better return.

The first two stocks, AT&T and Verizon, together dominate the U.S. telecommunications market -- both wireless and the legacy landline. As our data, telecommunications, and media needs continue to grow, these two are poised to profit. Buzzwords like Internet of Things, 5G networks, and cloud computing all provide opportunities for these two. The first three stocks are all "FAANG" (Facebook, Amazon, Apple, Netflix, and Google) stocks. These Big Tech companies have their hands in seemingly everything and have the potential to disrupt the parts of the economy they don't.

Just remember, the shorter your investment, the less your securities will generally return. Money market accounts typically earn higher interest than savings accounts and require higher minimum balances. Because they’re relatively liquid and earn higher yields, money market accounts are a great option for your emergency savings. With a CD, the financial institution pays you interest at regular intervals. Once it matures, you get your original principal back plus any accrued interest.

Bond funds investing in mortgages securitized by the Government National Mortgage Association (Ginnie Mae) are also backed by the full faith and credit of the U.S. government. When there's an economic slowdown or even a recession, the prevailing wisdom is that investors should move away from equity funds and move toward fixed income. They offer trading in stocks, bonds, options, Forex and futures. You can also trade in thousands of mutual funds and ETF’s. A Nasdaq 100 index fund offers you immediate diversification, so that your portfolio is not exposed to the failure of any single company.

That’s because you are free to take business from your competitors as they pull back their advertising spending or lay off staff. Many of the greatest retail fortunes in the United States, for instance, were made by entrepreneurs who expanded their storefronts during recessions despite not selling anything at the time. Whether bonds or stocks are a better investment depends on two things. If you want to avoid losing your principal, enjoy receiving regular payments, and aren't concerned aboutinflation, then bonds are for you.

The savings account includes an APY of up to 0.60% and the investing account uses the TD Ameritrade platform, which means trades cost nothing to execute. If you have a high deductible healthcare plan, be sure to fund an HSA account (see Podcast 67). Contributions are tax-deductible, and your money grows tax-free. If you spend the funds on qualified medical expenses, there is no tax on withdrawals either.

Bonds affect the stock market by competing with stocks to compete for investors' dollars. Bonds are safer than stocks, but they offer a lower return. The 2-year, 10-year Treasury yield curve – a closely followed recession indicator – inverted Aug. 14 for the first time since the Great Recession. Meanwhile, business investment has slowed and confidence is dimming because of geopolitical trade wars and slowing global growth.

Plus, there are questions whether portfolio fund managers can, over the long term, outperform their benchmarks, so index funds may be a good option. Take a look at Morningstar.com for a balanced view about all types of funds. You can check on what each fund charges in the prospectus or on the Website. Many financial advisors suggest that you buy mutual funds with an expense ratio that is less than 1 percent.

A mid-cap fund is a type of investment fund that focuses its investments on companies with a capitalization in the middle range of listed stocks in the market. Fixed income may be a smart move, but don't try to time the markets by exiting stock funds when you think growth is slowing and then start investing in bond funds. This flight may be an effective tactic for investors who are risk-averse as they flee equities for the perceived safety of the fixed-income investment world.

It also helps consumers who desire cars, furniture, and more education. They lead to higher corporate earnings and higher stock prices. Their value depends largely on corporate earnings, which corporations report each quarter. Stock values change daily depending on traders' estimates of future earnings compared to competing companies.

While bond funds and similarly conservative investments have shown their value as safe havens during tough times, investing like a lemming isn't the right strategy for investors seeking long-term growth. Investors also must understand that the safer an investment seems, the less income they can expect from the holding.

In similar fashion, Susquehanna Financial Group analyst Shyam Patil reaffirmed his Positive rating for Roku stock. Zgutowicz noted that the company is still the market leader with 35% share of the U.S. households.

While the answer to that debate may affect shorter-term growth, consumers will need fitness apparel for a long time to come. Another potential growth driver is expansion beyond its traditionally female target demographic. Finally, we have CareTrust REIT, which, as its name suggests, is a real estate investment trust (REIT).