Shares of Roku (ROKU) have gained 5% over the past four weeks to close the last trading session at $69.01, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $88.87 indicates a potential upside of 28.8%.The mean estimate comprises 26 short-term price targets with a standard deviation of $17.78. While the lowest estimate of $60 indicates a 13.1% decline from the current price level, ...

There are brands that become so entrenched in everyday life that it simply makes all the sense in the world to consider them in an investment portfolio. Disruption is unlikely, and even new competitors will arguably have a hard time taking market share from the products and services that consumers are so used to and loyal to by now. Today, investors have a chance to pick up one of these names before it keeps on running higher. Roku TodayROKURoku$70.83 -0.54 (-0.76%) 52-Week Range$48.33▼$104.96Price Target$ ...

Roku (ROKU) and Paramount Global (PARA) are both competing for dominance in the ad-supported streaming space, but their recent performances paint contrasting pictures. Roku continues to scale its platform and expand its advertising toolkit, while Paramount Global leans on franchise content and viewer engagement across Paramount+ and Pluto TV.With advertising dynamics shifting and investors seeking resilient growth in streaming, the key question is: Which stock offers better upside in 2025? Let’s delve deepe ...

Core Insights - Roku is the largest streaming platform in the U.S. by hours and broadband penetration, serving as the operating system for connected TVs and providing a player that converts any TV into a smart TV with the latest technology [5][6]. Company Overview - Roku operates as the leading streaming platform in the U.S., Mexico, and Canada, with ongoing growth in Brazil [5][6]. Financial Outlook - The CFO mentioned that the full-year outlook provided in February was positively influenced by a recent acquisition, although specific details on the acquisition and its impact on guidance were not elaborated [3].

Roku (ROKU) FY Conference May 13, 2025 03:00 PM ET Speaker0 So I'm Laura Martin, and I'm a Senior Media Analyst at Needham and Company. And I'm here to welcome Dan Jota, the CFO of Roku. Thank you for being on my stage. Speaker1 I Speaker0 appreciate you being here. Speaker1 This is my second time. Do you want maybe you'll invite me next year? Speaker0 Yeah, Maybe I'll invite you next year. It'd be good. No. I'm kidding. So let's talk about the sort of level set and say, tell us what Roku does. And then tel ...

Core Viewpoint - Roku's stock has significantly declined, down nearly 90% from its peak of $490.76 in mid-2021, despite a growing user base and leadership in the streaming TV market [1][2] Group 1: Business Model and Market Position - Roku's business model involves selling devices at low margins to attract viewers, which then leads to revenue from content partnerships and advertising [4] - Roku maintains a leadership position in North America, with nearly 40% of streaming households using its devices, and claims to be the top streaming platform in the U.S., Canada, and Mexico [5] - The shift from traditional TV to streaming benefits Roku, as device sales contribute to platform revenue, resulting in a 16% year-over-year increase in Q1 revenue to $1.02 billion [6] Group 2: Financial Performance and Challenges - Despite revenue growth, Roku has not returned to profitability, reporting a Q1 net loss of $27 million, although this is an improvement from a $51 million loss in the previous year [8] - Roku ceased publishing average revenue per user (ARPU) data starting in 2025, which may concern investors, while Q1 free cash flow was $298 million, down 30% year-over-year [9] - The stock's price-to-sales (P/S) ratio is currently 2.1, a significant drop from over 30 in 2021, indicating a shift to a value stock perception [10] Group 3: Investment Considerations - Investors may consider holding or adding shares, as the company could potentially return to profitability next year, addressing long-standing concerns [11] - Roku's current valuation may be perceived as a low point, and if it can reclaim a growth stock valuation, it could offer substantial long-term returns [12]

Roku (ROKU) closed the last trading session at $61.36, gaining 3.5% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $88.87 indicates a 44.8% upside potential.The mean estimate comprises 26 short-term price targets with a standard deviation of $17.78. While the lowest estimate of $60 indicates a 2.2% decline from the current price level, the most optimistic analyst expects the stock ...

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Roku (ROKU) .Roku currently has an average brokerage recommendation (ABR) of 1.91, on a scale o ...

Takeaways from the Roku's 1Q25 earnings release Yes, Roku's revenue and EBITDA growth slowed in Q1 2025 - and it's not just a seasonal blip. Revenue rose 15.8% year-over-year, down from 22.0% in Q4. EBITDA growth also decelerated, landing at 36.9% compared to 62.5% the previous quarter. The slowdown is JHVEPhoto ...

Financial Performance - Total net revenue for Q1 2025 reached $1,020,672, an increase of 15.8% compared to $881,469 in Q1 2024[29] - Platform revenue was $880,817, up 16.7% from $754,935 in the same period last year[29] - Net loss for Q1 2025 was $27,431, a significant improvement from a net loss of $50,855 in Q1 2024[29] - Gross profit for Q1 2025 was $445,045, up 14.6% from $388,291 in Q1 2024[29] - The company reported a comprehensive loss of $26,450 for Q1 2025, compared to a comprehensive loss of $51,192 in Q1 2024[31] - Adjusted EBITDA for the three months ended March 31, 2025, was $56.0 million, up from $40.9 million in the same period in 2024[132] - The net loss for the three months ended March 31, 2025, was $27.4 million, an improvement from a net loss of $50.9 million in the same period in 2024[132] Cash and Assets - Cash and cash equivalents increased to $2,256,153 as of March 31, 2025, compared to $2,160,236 at the end of 2024[26] - Total assets decreased to $4,179,874 from $4,303,933 at the end of 2024, reflecting a reduction of 2.9%[26] - Total liabilities decreased to $1,654,165, down 8.7% from $1,811,196 at the end of 2024[26] - As of March 31, 2025, cash and cash equivalents totaled $2,256.2 million, with approximately 4% held outside the United States[164] - Long-lived assets, net, decreased to $495.8 million as of March 31, 2025, from $518.2 million as of December 31, 2024[113] Revenue and Deferred Revenue - Total deferred revenue increased by $10.2 million during the three months ended March 31, 2025, reaching $141.0 million, primarily due to advertising arrangements and growth in Premium Subscriptions[58] - Revenue recognized from deferred revenue for the three months ended March 31, 2025, was $45.0 million, compared to $67.3 million for the same period in 2024, reflecting a decline of approximately 33.9%[59] - Estimated contracted revenue for remaining performance obligations was $811.1 million as of March 31, 2025, with approximately 76% expected to be recognized over the next 12 months[60] Operating Expenses - Operating expenses rose to $502,775, an increase of 9.2% compared to $460,327 in Q1 2024[29] - Total operating expenses increased by $42.4 million, or 9%, to $502.8 million for the three months ended March 31, 2025[158] - Research and development expenses increased by $4.1 million, or 2%, to $184.6 million for the three months ended March 31, 2025[159] - Sales and marketing expenses increased by $21.6 million, or 11%, for the three months ended March 31, 2025, compared to the same period in 2024[160] - General and administrative expenses rose by $16.8 million, or 22%, during the three months ended March 31, 2025, primarily due to higher legal and consulting expenses[161] Investments and Acquisitions - The company entered into an agreement to acquire Frndly TV, Inc. for a total purchase price of $185 million, expected to close in the second quarter of 2025[118] - The company invested $20.0 million in preferred stock in a privately-held company in September 2024, with no adjustments recognized in the three months ended March 31, 2025[72] Market and Competitive Landscape - The TV streaming industry is highly competitive, with significant competition from large companies like Amazon, Apple, and Google, which have greater financial resources[193] - The company faces risks related to user acquisition and retention, as well as effective monetization of its streaming platform[192] - The company must continuously invest in product development, marketing, and service support to maintain its competitive position[195] Advertising and Revenue Generation - The company relies on The Roku Channel as a valuable source of video advertising inventory, which may not continue to be sufficient in the future[201] - The company competes for advertising revenue with other streaming platforms and traditional media, which may have more attractive offerings for advertisers[198] - The correlation between total Streaming Hours and platform revenue is weak, as not every hour streamed is monetized, impacting revenue generation[211] User Engagement and Content Partnerships - A small number of content partners account for nearly half of the Streaming Hours, and losing these relationships could adversely affect the company's user base and streaming device sales[219] - The company must continuously maintain and establish relationships with content publishers to provide popular streaming apps, which is essential for competitiveness[220] - Non-renewal or early termination of agreements with content partners could lead to the removal of apps or features, harming user engagement and sales[222]