Is Roku Stock Still a Buy After Hitting a New 52-Week High?

Core Viewpoint - Roku has shown significant growth in revenue and a reduction in operating losses, but challenges remain that could impact future performance [2][3][5]. Financial Performance - In Q4 2024, Roku reported a 22% increase in net revenue, reaching over $1.2 billion, while operating losses decreased from$ 104 million to $39 million [2]. - The stock has increased over 34% in the past 12 months, reaching a new 52-week high [1]. Market Reaction - The market responded positively to Roku's quarterly results, with shares climbing as the company exceeded expectations on both revenue and losses [3]. Growth Strategies - Roku plans to enhance third-party platform integrations to drive future growth and potentially achieve profitability [3]. Challenges Ahead - The company heavily relies on advertising revenue, which may be affected by economic slowdowns and reduced ad spending post-election [5]. - Increased competition, particularly from Walmart's acquisition of Vizio, could hinder Roku's growth opportunities [6]. - The devices segment is growing but remains unprofitable, with a gross profit loss of$ 47.4 million last quarter, more than double the previous year's loss [7]. Investment Outlook - Current elevated stock levels make it difficult to justify investment in Roku at this time, suggesting a wait-and-see approach for a few more quarters [8][9].