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Roku's Amazon Deal Revenue To Be A 'Gradual Ramp,' Not a Sudden Boost, Analyst Says
Benzingaยท2025-06-16 17:55

Core Viewpoint - JP Morgan analyst Cory A Carpenter maintains an Overweight rating on Roku Inc. following a strategic partnership with Amazon, which allows advertisers to purchase Roku's advertising inventory through Amazon's Demand-Side Platform (DSP) [1] Group 1: Partnership Details - The Amazon ads partnership is more deeply integrated than Roku's partnership with The Trade Desk, with Amazon representing a platform-level integration compared to The Trade Desk's Roku-level integration [2] - The partnership provides advertisers with comprehensive platform-level data for better targeting capabilities, allowing visibility into every channel on the Roku platform by matching data sets from Roku with Comcast and Disney [3] Group 2: Revenue Expectations - Roku expects some revenue from the Amazon partnership in the fourth quarter of 2025, but this was not included in the 2025 outlook, indicating a gradual ramp-up rather than an immediate increase [5] - The Amazon partnership is part of several initiatives that give management confidence in providing a full-year outlook, although explicit revenue contribution from this partnership was not detailed [5] Group 3: Stock Performance - Following the announcement of the partnership, Roku's stock is trading higher by 8.04% to $80.39 [6]