Elon Musk: THIS will be bigger than Tesla
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Hello. I'm James Altucher. I've been called a “genius investor” by my fans… And an “eccentric millionaire” by some others. I think it's because I make big predictions… That tend to come true. Today, I'm revealing a brand-new prediction:
American manufacturing will leave China…
And make a triumphant return to America…
Thanks to AI-powered robots.
The technology is being developed right now. I'm talking about, among others… Elon Musk's Optimus robots. These robots are autonomous workers… Embedded with a smart “AI brain”. Musk is going to use thousands of them in Tesla factories… AI robots will make it cheaper to manufacture goods here in America than China. And they'll create new American jobs in construction, maintenance, transportation, management, and more. Musk believes the potential of these robots is almost limitless… And could soon exceed Tesla's revenues… He's even said his robots have the potential to be used in homes… To make dinner and do housework… Care for the elderly… Or even hinted at them… Being a buddy or “romantic companion” for lonely people.Now that may sound strange… (And perhaps it is.) But I've learned not to bet against Musk's vision. And this is just one of the ways AI will transform our economy and society. In fact, I now predict… Between now and January 9, 2024… Next generation AI technology will open a “wealth window”… That could be the biggest wealth-building opportunity of your lifetime. I now expect AI to be the first $100 TRILLION industry. There could be trillions available to those who get in early… Today, for the first time… I'm showing good Americans exactly what to do… Go here now to see my plan… For investing in AI during this brief “wealth window”.
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Roku (ROKU 2.62%) is a market leader in an expanding industry, but this doesn't mean that the shares can pop tenfold in the next 10 years. The starting line is kind right now. Roku may have more than doubled this year, but the shares are still trading for less than a fifth of the all-time high hit in the summer of 2021.
The share count is only marginally higher now. In short, the market perception of Roku's fundamentals would have to return to where it was two years ago, and then double from there. This can definitely happen in the next 10 years, especially as Roku is showing clear signs of overcoming the bearish knocks on the streaming media pioneer.
Getting louder
There was a lot to like in Roku's latest quarterly update, a well-received report that catapulted the stock a blistering 75% higher in November. A lot of the negatives weighing on the platform's success — slowing revenue growth and declining average revenue per user (ARPU) — went away. The 20% top-line growth it posted was the biggest year-over-year gain since the first quarter of 2022. It was also the third consecutive report of sharply accelerating revenue growth.
Q4 2022: 0.2% revenue growth
Q1 2023: 1%
Q2 2023: 10.8%
Q3 2023: 19.8%
ARPU also turned positive sequentially for the first time in more than a year. This is a pretty big deal. Active accounts have grown consistently. Engagement has also been steady, as streaming hours continue to keep up and at times exceed user growth. The hiccup in monetization was a setback in the connected TV advertising market. Roku is finally turning the corner on that front, and as the marketing platform gets more interactive, it should become even more lucrative.
The state of streaming circa 2033
A lot can happen in the next 10 years. Roku is currently the industry leader, and it has padded its lead against the tech, consumer tech, and e-commerce giants that it competes against in this popular niche. No market leader is obviously a lock to still be in the pole position a decade from now, but Roku has achieved ubiquity in the world of streaming service stocks. There were 75.8 million active accounts on Roku at the end of September, a 16% increase over the past year.
Despite its leadership in an important field, Roku commands a modest market cap of $12.7 billion. Its rich net-cash position pushes its enterprise value down to less than $11.4 billion. As the gateway of choice to streaming on TV, Roku has many roads to a 12-figure market cap by 2033.
Growing its audience is one path to a more valuable Roku, and the roadmap is already there. Roku has become the top platform in Mexico and Canada. It is expanding deeper into Latin America, and its push into the United Kingdom is the first step of establishing a presence in Europe and beyond. The platform itself can also become more lucrative. Roku has generated an average of $41.03 in revenue per user over the past four quarters, and the ceiling is high. Marketers need to reach Roku's growing audience, and the platform keeps evolving its offering to make it easier for advertisers to stand out and establish direct connections with interested viewers.
Then we get to Roku's current lack of profitability, the last remaining ace card for the naysayers. Roku was briefly profitable for six quarters through the end of 2021, perhaps not coincidentally the year when the shares hit an all-time high just above $490. It has rattled off seven straight quarters in the red since then, and that's not expected to change anytime soon. Analysts don't see Roku returning to profitability until 2027. Investing in content, expansion, and new product lines has weighed on the bottom line, but things are getting better. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) just turned positive after more than a year of negative results. Analysts also see its annual deficit more than halved in 2024. Roku is getting the balance right between investing in growth and controlling costs to give bulls the ammo they need to finally vanquish the bears.
This has been a good year for Roku. The next 10 years could be even better.
$3 “AI Wonder Stock” (The NEXT Microsoft?)
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AI is by far the biggest tech investing trend of 2023. But Ross Givens says the #1 artificial intelligence stock is NOT Microsoft, Google, Amazon or Apple. Nope – his research is pointing to a tiny, under-the-radar stock that's trading for just $3 right now… And could soon shoot to the moon, handing early investors a windfall. This company already has 98 registered patents for cutting-edge voice and sound recognition technology… And has lined up major partnerships with Honda, Netflix, Pandora, Mercedes Benz and many, many others. So if you missed out on Microsoft when it first went public back in 1986… This could be your shot at redemption. Click here now for the full details of this $3 stock that's set to rocket in the AI revolution…
