06. VIZIO Holding Corp. (NYSE:VZIO)
Number of Hedge Fund Holders: 23
VIZIO Holding Corp. (NYSE:VZIO) holds the number seventh spot on our list of ten best consumer electronics stocks to buy. VIZIO Holding Corp. (NYSE:VZIO) is a prominent player in the consumer electronics industry, offering a range of smart televisions, sound bars, and accessories across the United States. Through its Smart TV platform, Platform+, the company integrates its SmartCast operating system, which allows users access to a variety of streaming apps, such as Amazon Prime Video, Disney+, Netflix, and more. VIZIO’s Smart TVs also feature Apple AirPlay 2 and Chromecast support, enabling users to stream content from their devices. The company is known for making entertainment more accessible through its user-friendly interface and advanced smart home integrations.
VIZIO Holding Corp. (NYSE:VZIO) delivered a strong performance in Q3 2023, beating earnings expectations with an EPS of $0.069, significantly surpassing the anticipated $0.02. This performance is a testament to VIZIO’s robust platform monetization and growth in its advertising revenue, which surged by 27%, driven by large ad categories like insurance and retail. A key highlight of the quarter is the improvement in gross profit margins, which hit a record 22.6%, marking the third consecutive quarter of growth. This margin expansion is attributed to the strength of VIZIO Holding Corp. (NYSE:VZIO) high-margin Platform+ segment, which accounted for 37% of total revenue and over 100% of consolidated gross profit. Platform+ revenue grew 22%, benefiting from strong advertising sales and increased user engagement, particularly through its SmartCast operating system. SmartCast’s ARPU (Average Revenue Per User) rose 14% year-over-year, reaching a new high of $31.55, indicating higher engagement and monetization from VIZIO Holding Corp. (NYSE:VZIO) growing install base. The company’s focus on larger screen sizes is paying off, as these TVs tend to drive higher engagement and streaming hours, resulting in better economic value over the long term. VIZIO’s strategic pricing on larger TVs is expected to further enhance user engagement and boost ARPU in the coming quarters.
VIZIO Holding Corp. (NYSE:VZIO) balance sheet remains solid, with $335 million in cash and no debt, providing the company with the financial flexibility to continue investing in its growth strategies. Additionally, the company is exploring potential partnerships with other TV manufacturers, aiming to expand its operating system and open new revenue streams. With increasing consumer preference for streaming and the growing advertising market, VIZIO Holding Corp. (NYSE:VZIO) is well-positioned to capitalize on these trends. Looking ahead, the company expects further growth in its high-margin Platform+ revenue and remains confident in its product lineup and pricing strategies for the upcoming holiday season, making it a strong contender in the consumer electronics space.
