Roku says 26% of its cash reserves are stuck in Silicon Valley Bank

CNBC ^ | 3/10/2023 | Rohan Goswami

[Steven Scharf]

Roku shares fell over 4% in extended trading on the news.

I would not think that it would hurt Roku’s business stratergy and thus I would think the stock is a buy at the lower price which reflects investor emotion over business mangement.

I suspect Roku is probably a cash cow so it will see that much in new cash in a couple of months.

[Reno89519]

So, I’m sure they can hire a couple developers to write a program to automatically transfer the money around to keep it under the limit.

[discostu]

Except there’s still the math problem, basically half your money can’t be insured. Then there’s the other issue of having too many accounts makes using it hard. A business like Twitter can drop millions on equipment in a single decision, trying to pull that money out of a bunch of accounts would be a nightmare. No, the simple reality is you spread the money around a little bit, once you’re a billion dollar company you just rely on having a lot of money as your primary safety. It is only a 1/4 of their money in there, if it goes away (which it won’t) they still got $1.4 billion, they’ll be fine.