Company Performance - Roku's stock closed at $98.28, with a daily increase of 2.34%, outperforming the S&P 500's gain of 0.58% [1] - Over the past month, Roku's shares experienced a loss of 2.22%, which is better than the Consumer Discretionary sector's loss of 2.64% but underperformed the S&P 500's gain of 0.16% [1] Earnings Projections - Roku is expected to release its earnings on October 30, 2025, with projected earnings per share (EPS) of $0.07, indicating a 216.67% increase year-over-year [2] - Revenue for the same quarter is projected to be $1.21 billion, reflecting a 13.46% rise from the previous year [2] Full Year Estimates - For the full year, earnings are projected at $0.14 per share and revenue at $4.66 billion, representing increases of 115.73% and 13.24% respectively from the prior year [3] - Recent analyst estimate revisions for Roku indicate positive sentiment regarding the business outlook [3] Valuation Metrics - Roku has a Forward P/E ratio of 691.42, significantly higher than the industry average of 31.59, indicating it is trading at a premium [6] - The company also has a PEG ratio of 11.32, compared to the Broadcast Radio and Television industry's average PEG ratio of 1.89 [7] Industry Context - The Broadcast Radio and Television industry, part of the Consumer Discretionary sector, holds a Zacks Industry Rank of 87, placing it in the top 36% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Investors interested in stocks from the Broadcast Radio and Television sector have probably already heard of Fox Corporation (FOX) and Roku (ROKU) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive e ...

Key Points Netflix decided not to pursue its plans to build a smart-TV operating system, allowing Roku to pursue those plans independently. Roku needs to attract more advertising demand, and there's hope it can do just that. 10 stocks we like better than Roku › Netflix is the heavyweight champion of streaming services. While less than 20 years ago streaming didn't really exist yet, the company had the foresight to know that streaming would be the next big thing. And that's why it worked on The Netfl ...

Core Insights - The enterprise has entered a new business segment which will lead to an increase in capital expenditures [1] - The growth stock is currently trading at a relatively attractive price due to investor concerns regarding the costs associated with its new strategy [1]

Core Insights - The article highlights three companies that are expected to grow significantly in the long term despite being undervalued in the current market environment Group 1: Unity Software - Unity Software is experiencing a return to strong growth after a period of stagnation, with shares still 82% below their previous peak [2][3] - The company is a leading provider of software for video game developers, particularly in mobile gaming, and its AI-powered advertising platform, Unity Vector, is driving growth in its ad network [3][4] - Unity reported a slight year-over-year decline in total revenue in Q2 but is expected to return to growth by 2026, with free cash flow projected to grow at an annualized rate of 25% [3][6] - The company has seen double-digit growth in subscriptions for its game development software and has expanded into non-gaming markets, including partnerships with automakers like BMW [5] Group 2: Roku - Roku's shares fell sharply in 2021 due to a slowdown in the advertising market but have since rebounded, although they still trade 80% below their all-time high [7][8] - The company has a strong competitive position in the streaming market, with nearly 90 million user accounts as of the end of 2024, representing a 12% increase from Q4 2023 [9] - Roku's platform revenue grew 18% year-over-year in Q2 2025, driven by a large and growing audience, and the connected-TV advertising market is expected to grow from $29 billion in 2024 to $38 billion in 2027 [10] Group 3: Fiverr International - Fiverr International's shares are trading 93% below their previous high, yet the company continues to increase free cash flow and focus on AI initiatives [12] - Despite economic volatility affecting the gig economy, Fiverr reported a 15% year-over-year revenue increase in Q2, with strong demand for AI-related services, particularly a 37% increase in demand for AI consultants [13][14] - The recent launch of its AI-powered Shopify Store Builder contributed to an 84% year-over-year increase in services revenue, and the stock is trading at a low price-to-free cash flow multiple of 9, indicating a potential bargain for investors [15][16]

Core Insights - Roku's stock has increased by 28% in 2025, outperforming the market [1] - The company returned to profitability in Q2, ending a three-year streak of losses, and continues to show double-digit revenue growth [2] - Roku's stock is still trading over 80% below its all-time high from 2021, indicating it may be undervalued historically [4] Financial Performance - Roku achieved a record 35.4 billion hours of streaming in Q2, a 17% year-over-year increase [5] - The company has consistently generated hundreds of millions in free cash flow over the trailing twelve months [2] - Analysts have noted that Roku has exceeded quarterly profit expectations by 25% or more over the past year [6] Market Position - The shift of advertising dollars from traditional television to streaming is benefiting Roku, despite potential near-term volatility [5] - Roku is positioned to engage its growing audience effectively, with upcoming Q3 results expected on October 30 [6] - The company is recognized as a leader in the connected TV market, with ongoing revenue and platform consumption growth [7]

Core Viewpoint - Roku's stock performance is being closely monitored ahead of its upcoming earnings report, with significant projected increases in both earnings per share and revenue compared to the previous year [2][3]. Financial Performance - Roku's projected earnings per share (EPS) for the upcoming quarter is $0.07, representing a 216.67% increase year-over-year [2]. - The consensus estimate for Roku's revenue is $1.21 billion, indicating a 13.46% rise from the same quarter last year [2]. - For the entire fiscal year, earnings are expected to be $0.14 per share and revenue is projected at $4.66 billion, reflecting increases of 115.73% and 13.24% respectively from the previous year [3]. Analyst Estimates - Recent changes to analyst estimates for Roku indicate a positive outlook on the company's business operations and profit generation capabilities [4]. - The Zacks Consensus EPS estimate has increased by 18.71% over the past month, suggesting growing analyst confidence [6]. Valuation Metrics - Roku currently has a Forward P/E ratio of 709.78, which is significantly higher than the industry average Forward P/E of 30 [6]. - The company has a PEG ratio of 11.62, compared to the Broadcast Radio and Television industry's average PEG ratio of 1.86 [7]. Industry Context - The Broadcast Radio and Television industry, which includes Roku, is part of the Consumer Discretionary sector and holds a Zacks Industry Rank of 84, placing it in the top 35% of over 250 industries [8].

Florida’s watchdog tasked with enforcing parental rights laws and data collection of minors has filed a civil enforcement action against Roku (NASDAQ:ROKU) for unlawfully collecting sensitive data about minors’ online activities. “Florida families deserve to know what is happening with ...

Core Insights - The article emphasizes that valuations in stocks, real estate, or any cash-generating business are fundamentally based on future growth expectations, urging investors to rely on data rather than opinions [1] Group 1: Valuation Misconceptions - Many retail investors mistakenly label stocks as "expensive" solely based on high price-to-earnings (P/E) ratios without considering growth trajectories [2] - A proper valuation requires weighing price against growth potential, which is the focus of the analysis [2] Group 2: Company-Specific Analyses Roku Inc. - Roku's recent quarterly earnings showed a significant EPS of $0.07, contrasting with a consensus forecast of a 16-cent net loss, indicating the company's ability to drive growth despite cautious consumer spending [3][4] - Analysts have set a price target of $145 for Roku, reflecting its potential for higher earnings as its platform scales and ad revenues strengthen, suggesting a 40% upside from the current price of $99.81 [5][6] Spotify Technology - Spotify is viewed favorably by institutional investors due to its stable subscription revenue model, despite a forward P/E of 66.2x [9][10] - Analysts have initiated coverage with a price target of $845, indicating a 24% upside potential from the current price of $674.91 [11] On Holding - On Holding has successfully transitioned from a retail-focused model to one with significant wholesale exposure, expected to enhance gross margins and boost EPS [12][13] - The current price target for On Holding is $64.20, suggesting a 52.5% upside from its current price of $43.15, as analysts anticipate further growth from its wholesale model [14]

Investors with an interest in Broadcast Radio and Television stocks have likely encountered both Fox Corporation (FOX) and Roku (ROKU) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, wh ...