What's going on moon gang, i hope you're having an absolutely wonderful day. My name is matt and in this video i will be talking about two of the stocks from my november watchlist, video, roku and square. Both of these companies just reported their quarterly earnings, and now their stocks are at new all-time highs. I will be discussing what was in those earnings reports and then i'll be doing a technical breakdown of their stocks, but before i get into all that fun stuff, if you're new to the channel, don't forget to join the moon gang by hitting the subscribe button, i'm Attempting to hit 5 000 subscribers by the end of this year and your help with that would be truly appreciated.

Also, it would be great if you could drop a like, because it really helps with getting this video in front of other people who may be interested, and now that i got that out of the way, let's get started. Alrighty then, first up to bat, is the streaming provider roku. In my november watchlist video, i explained that roku could be a massive beneficiary of the continued duration and potential second wave of the virus and that's exactly what happened. Roku stock jumps after earnings beat and analysts raised price targets.

Shares of roku jumped more than 12 on friday november 6, as investors rallied around the company's third quarter. Earnings beat after the market closed on thursday roku posted 9 cents in earnings per share on 452 million. In revenue, analysts had projected a loss of 40 cents per share and 366 million in revenue, so in other words, roku not only beat expectations, but they absolutely destroyed them. The company said it added 2.9 million incremental active accounts in q3, 2020 to reach 46 million.

An analyst from benchmark said that roku blew past already elevated expectations. Last night, posting a 73 year-over-year total revenue, growth and, what's even more exciting, is that the firm raised their price target from 185 dollars all the way up to 300, and they continued by saying that they anticipate the stock to make further gains in the coming months. This massive upgrade has me pretty excited to say the least. Roku did not provide formal q4 guidance but said it expects quarterly revenue to grow.

In the mid 40 range year over year, the streaming provider has benefited from stay at home. Orders that cause people to seek out in-home entertainment, which is exactly what i said in my previous roku video, but even without the virus. It's also benefiting from the shift in viewing away from traditional tv channels, as people cut the cord on their pay tv subscriptions. Basically, this last sentence is saying that the recent surge is no fluke.

Roku is successfully riding the wave. That is the shift away from traditional tv and as a little cherry on top analysts at susquehanna raised their price target from 185 to 275, which is also a pretty considerable jump for whatever reason: there's not much hype or excitement surrounding roku stock. But if things keep trending in the direction that they are, there is a strong argument to be made that roku would be an excellent addition to your portfolio to get a better idea of what we're dealing with. Let's switch over to the charts on the screen.

Now is roku's daily chart, roku trades under the stock symbol roku and the day after its earnings announcement, it gained 12.5 percent, which means that the stock is sitting just above dollars. There was quite a bit of action because the daily volume was 16.5 million shares and the average volume over the past 10 days has only been 5 million. Over the past week, roku has gained 25 over the past month. It has gained 13 and from the start of 2020.

Until now it is up 89. Since march roku has been in a very nice uptrend and after this earnings report it made a new all-time high at 255. From a technical perspective, it's tough to call out areas of resistance when you're sitting at a new all-time high, but in terms of support, i would recommend watching the previous all-time high of 239, and that would be a decline of 5.5 percent from the most recent close. If the bear camp pushes the stock below that, i would be watching the recent low and important psychological level of 200, which would be a decline of almost 21 percent and as a reach goal, you could always watch 176, which would be a decline of 30.

Personally, i would never recommend investing at all-time highs. I would look to create a core position around levels of support. There is a chance that the stock could continue to run from here. So if you're like me and you're not invested in roku, yet you would be missing out, but on the other hand, i think it's more likely that roku pushes a little bit higher and then comes back down to one of these levels of support at 239.

Maybe 217 or even 200 to test the level of demand, and my reasoning for this is what i'm seeing in the rsi the last one, two three four five times that roku had an rsi reading above 70, the stock made a new relative high, and then that Was then followed by a period of consolidation, as things currently stand, i have no reason to believe that that pattern won't be followed. Once again, i personally believe that roku stock will continue to have impressive returns so moving forward, i'm planning on investing a partial position. Around 215ish and then i would max the position out around 200.. If this opportunity ends up presenting itself, i would plan on holding these shares for quite a while, because i strongly believe that roku could hit 300 within the next year and continue to run after that, and just so you know, based on the most recent close from 253 to 300, that would be a gain of over 18 percent.

Now, let's switch gears to square which is a payment processing company that also has an entire financial ecosystem square, had its earnings announcement on the same day as roku, and then this was the news that immediately followed square stock rockets after earnings beat company says that 2.5 Million have used cash app stock trading feature less than a year into its launch. Square's business showed two very different stories. In the early days of our stay at home, world, its seller segment came under pressure due to lockdown restrictions, while its cash app consumer segment saw surging usage from people looking to send money in the increasingly digital world. Now the merchant side of the business is starting to come back, while the cash app business is still displaying momentum.

So, to put it in a nutshell, the overall volume of payments was down and it was the cash app that kept things going. But now both business sectors are doing well and the stock is taking off square's revenue for the third quarter, climbed to three billion dollars. Where analysts were expecting two billion and if you exclude the bitcoin revenue, the company generated 1.4 billion, which is up 25 from last year. Square's gross profit also topped expectations coming in at 794 million, where annuals were projecting 708 million.

So, to sum things up: square recorded in earnings per share of 34 cents up from 25 cents a year earlier, and this beat expectations which called for 16 cents, basically just like roku square, had a blowout earnings announcement, and that explains why its stock is at a New all-time high, and just so you know, citigroup upgraded square from neutral to buy and raise their price target from 185 to 215, and now that i've covered all this, let's check out the chart here is a look at square's daily chart square trades under the ticker Sq and after its earnings announcement, it had a very nice 13 gain, which means that the stock is sitting just under 200 dollars. Similar to roku. People were pretty excited about the report because the volume was almost three times larger than the average volume over the past 10 days over the past week square is up 28 percent over the past month. It is up 8 and from the start of the year.

Until now, it's up a very solid 216 from march. Until now, square stock has been climbing upward, with seemingly no hiccups and after the most recent quarterly report, it posted a new all-time high at 201.33 cents. As things currently stand, the closest support would be the recent high of 193, which would be a decline of 2.3 percent if the stock happens to fall below that, i would then be watching 170, which would be a decline of almost 14 and as a reach target. You could watch 151, which is the recent low, and that would be a decline of almost 24.

As i said before, i would never recommend investing at all-time highs, so you could try your luck at 193, but i think this 170 support is a little bit more realistic in terms of risk to reward. We also have a pretty similar situation going on with the relative strength index. The rsi has not cleared 70, so there's definitely still more room to run, but once it gets above this reading, there's a good chance of a decline, or at least a consolidation for this particular play. I wouldn't mind being a little bit more aggressive because it seems as if the cash app is doing very well for the company.

Personally, i already own shares of square, and my cost basis is the low 100s. But i would consider buying more at this level of support. I am bullish on roku and square because i think there's a very good chance that both companies will have continued success in the coming years. With that being said, i already own shares of square, but not roku, for the latter, i'm looking for a better opportunity to invest, as things continue to develop, fundamentally and technically, for both roku and square i'll, make sure to keep you updated in future videos and also Keep you posted on if i pick up any more shares of either company so make sure you have your notifications turned on if you made it to this point in the video you're an absolute legend in my book, i would love to know your thoughts on both Roku and square so feel free to.

Let me know in a comment below if you enjoyed this video, don't forget to drop a like, and if you haven't already don't forget, to join the moon gang by hitting the subscribe button. All that engagement really helps with getting this video in front of other people who may be interested and as a quick side note if you're looking for a group of people who talk about this type of stuff on a daily basis, i would highly recommend checking out Smd trading there's a link in the description of this video thanks for watching and until next time best of luck in the markets. You.