DORAL, FLORIDA - AUGUST 23: Jessica Alba is seen on the set of Univision's "Despierta America" to ... [+] promote the Roku Original Series "Honest Renovations" at Univision Studios on August 23, 2024 in Doral, Florida. (Photo by Alexander Tamargo/Getty Images) Getty Images Roku stock gained nearly 6% on Thursday and has climbed 11% over the past week. What's driving this upward momentum? One factor is an analyst upgrade by Wolfe Research, which raised its rating on Roku stock from Hold to Buy, anticipating ...

Investment Thesis - Roku's management has effectively built on ad revenue catalysts over the past 15-18 months [1] Ad Monetization Strategy - The company is focused on delivering growing adjusted EBITDA and positive free cash flow through tools and product features aligned with its ad platform [2] - Roku's three-pillar ad monetization strategy includes enhancements to the Roku Home Screen, increasing Roku-billed subscriptions, and scaling ad demand through partnerships with leading DSPs like The Trade Desk [2][6] - Roku's stock has shown signs of recovery, emerging from correction territory, although it remains down significantly [2][3] User Metrics and Engagement - Roku has reached 83.6 million active accounts globally, with a 20% year-over-year increase in streamed hours, totaling over 30 billion hours [4][5] - The company's ARPU is showing sequential improvement, attributed to high user engagement and the success of its FAST channels [5] - Roku Channel's market share has increased to 1.6%, up from 1.5%, aided by expanded programming including live sports [5] Revenue Growth and Partnerships - Platform revenue grew 11% to $824 million, with expectations for sequential growth this year, positioning Roku for mid-teens growth in CY24 and CY25 [5][6] - Roku's partnerships with DSPs, including the adoption of Trade Desk's UID2 for ad targeting, are enhancing ad demand on its platform [6] Valuation and Market Sentiment - Despite improvements, Roku is trading at a lower valuation compared to the S&P 500, indicating skepticism about its growth prospects [7] - The company is expected to achieve a 13-15% CAGR growth through CY25, with potential for significant expansion in sales multiples [7] Device Sales Performance - Roku's device revenue increased approximately 39% in Q2, indicating strong sales momentum ahead of the holiday season [8] - The outlook for device sales is positive, contingent on retail spending trends during the holiday season [8] Overall Sentiment - Improved performance in the platform segment has shifted sentiment positively towards Roku, although valuation levels remain depressed, suggesting strong upside potential [9]

Company Performance - Roku's stock closed at $74.69, reflecting a +0.76% change from the previous day's closing price, outperforming the S&P 500's gain of 0.54% [1] - Over the past month, Roku's shares increased by 25.07%, significantly surpassing the Consumer Discretionary sector's gain of 10.09% and the S&P 500's gain of 4.86% [1] Upcoming Earnings - Roku is expected to report an EPS of -$0.35, indicating an 84.98% increase compared to the same quarter last year [2] - The consensus estimate for Roku's revenue is projected at $1.01 billion, representing an 11.07% rise from the equivalent quarter last year [2] Annual Estimates - For the annual period, the Zacks Consensus Estimates predict an EPS of -$1.45 and revenue of $3.97 billion, reflecting increases of +71.06% and +13.85% respectively from the previous year [3] Analyst Projections - Recent shifts in analyst projections for Roku should be monitored, as they often indicate short-term business trends and analyst optimism regarding the company's profitability [4] - Revisions in estimates are correlated with stock price performance, suggesting that positive changes can lead to favorable market reactions [5] Zacks Rank - Roku currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate remaining unchanged over the last 30 days [6] - The Zacks Rank system has a strong track record, with 1 stocks averaging an annual return of +25% since 1988 [6] Industry Context - The Broadcast Radio and Television industry, which includes Roku, is part of the Consumer Discretionary sector and has a Zacks Industry Rank of 191, placing it in the bottom 25% of over 250 industries [7] - The Zacks Industry Rank indicates that top-rated industries tend to outperform lower-rated ones by a factor of 2 to 1 [7]

The smart-TV pioneer has been soaring since hitting an 18-month low last month. One of this year's biggest sinkers turned out to be a back-to-school sale. Shares of Roku (ROKU 5.67%) have rallied 53% since bottoming out last month, a spectacular late summer surge that even bulls probably didn't see coming. The catalyst isn't easy to pinpoint. Roku kicked off last month with seemingly blowout results, but the market didn't read it that way. At least four analysts would slash their price targets on the shares ...

Roku (ROKU) shares rallied 5.7% in the last trading session to close at $74.13. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 24.8% gain over the past four weeks. Shares of Roku jumped after Wolfe Research analyst upgraded the stock's recommendation from Peer Perform (Hold) to Outperform (Buy), with a price target of $93, citing an improved outlook for the company's sales growth and profitability. Programma ...

Roku Inc (NASDAQ:ROKU) stock surging today, last seen up 6.3% to trade at $74.55 at last glance, after Wolfe Research upgraded the streaming giant to "outperform" from "peer perform," and set its price objective at $93. There is plenty of room for more analysts to turn bullish. Coming into today, 14 of the 24 firms in coverage called the stock a tepid "hold" or worse, while the 12-month consensus target price of $71.44 is a slim 4.3% premium to current levels. It's also worth noting 7.9% of Roku stock's ava ...

Core Viewpoint - Roku is showing signs of recovery after a challenging period, with strong operating results and potential for long-term growth as the shift to streaming continues [1][3][16] Company Performance - Roku's share price experienced significant fluctuations, tripling in value from mid-August 2020 to mid-February 2021, but has since dropped about 25% year-to-date and over 85% from its all-time high [2] - The company saw platform revenue grow by 80% in 2021, but growth slowed to 20% in 2022 and shrank by 1% in Q1 2023 due to increased competition and economic pressures [5][6] - In Q2 2023, platform sales increased by 11%, with management expecting 9% year-over-year growth for the third quarter [8] Market Dynamics - The COVID-19 pandemic accelerated the shift to streaming, benefiting Roku as it became the largest connected TV platform [1][4] - Increased competition among streaming services led to higher ad prices, but the subsequent economic downturn and inflation caused a pullback in ad spending, negatively impacting Roku's results [5][6] - Media and entertainment ad spending continues to be a drag on Roku's performance, but there are indications that the worst is behind the company [7] User Engagement - Roku added 2 million net new users in the latest quarter, with average household viewing time increasing from 3.8 hours to 4 hours per day [10] - Roku accounts for 47% of all U.S. streaming time on connected TVs, indicating a strong engaged audience for advertisers [10] Future Outlook - Management anticipates platform revenue to accelerate in Q4 2023 and expects a strong gross margin due to seasonal factors [9] - The long-term investment thesis for Roku remains intact, with expectations that all media will eventually move to streaming, positioning Roku favorably [12][13] - The company is poised to benefit from emerging opportunities in sports streaming as media companies seek to drive viewers to their platforms [15]

Company Overview - Roku's stock has significantly declined, trading 86% below its all-time high reached in July 2021, despite a remarkable 530% increase from its March 2020 low [1] - The company has added 2 million active accounts in Q2, bringing the total to 83.6 million, indicating continued user growth [3] Financial Performance - Roku reported a 14% revenue gain in the latest quarter, with management forecasting an 11% rise in the third quarter, suggesting healthy business expansion [2] - The company has achieved positive-adjusted EBITDA for four consecutive quarters, although it is not yet generating positive net income [7][8] Market Position - Roku holds a top market share among smart-TV operating systems in the U.S., Canada, and Mexico, benefiting from high user engagement with 30.1 billion hours of content streamed in the last three months [3] - The company operates as an agnostic platform, allowing it to capitalize on the cord-cutting trend without incurring high content licensing costs [4] Industry Trends - The digital-ad industry is cyclical, with marketing budgets tightening during economic downturns, as seen in 2022 and 2023; however, long-term trends indicate that ad dollars will increasingly flow to streaming services [5] - Roku's reliance on major content companies for ad inventory poses a risk, as these companies hold significant negotiating power [9] Valuation - Roku's current price-to-sales ratio stands at 2.6, well below its historical average of 9.5, making the stock potentially attractive for investors looking to buy the dip [10]

Roku (ROKU) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term. Shares of this video streaming company have returned +23.7% over the past month versus the Zacks S&P 500 composite's +2.5% change. The Zacks Broadcast Radio and Television industry, to which Roku belongs, has gained 7.7% over this period. Now the key question is: Where could the stock be headed in the near term? Although medi ...

Consumers who cut their cable cord in recent years are finding that there's one thing about linear TV they can't escape: political ads. With the U.S. presidential election less than 70 days away, campaigns are swarming streaming services like Roku and Hulu to such a degree that connected TVs are seeing more ad spending than internet platforms such as Facebook and Google. That's according to data provided to CNBC by political ad analytics firm AdImpact, which started tracking the connected TV (CTV) category ...