MoffettNathanson analyst Michael Nathanson reiterated a Neutral rating and $360.00 price target on Roku Inc. (NASDAQ: ROKU) after net revenues of $574 million beat expectations for $517 million by +11%. Higher platform revenues of $467 million +18% vs. expectations for $394 million drove the upside but were partly offset by lower player revenues of $108 million (-12% vs. the estimate of $123 million).

The analyst reiterated the Neutral rating, on the belief that Roku is benefitting from the collapse of linear viewing but competition is coming. He stated "If this were a less competitive market, we would be all in on Roku’s opportunity. The problem is that longer term, we remain unconvinced that Roku has built a large enough moat to keep competitors out of their business – and that is certainly more true outside the U.S. While solely focused on streaming, Roku is facing competition from OEM platforms like Vizio and Samsung, established tech giants like Amazon, Apple and Alphabet, and broadband providers like Comcast and T-Mobile to own the customer and their streaming behavior. So, when everybody is digging for gold, it’s good to be in the shovel business until everyone else gets into the business, too."

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Shares of Roku Inc. closed at $284.01 yesterday.