Core Insights - The streaming video platform has achieved its first profitable year since 2021, driven by investments in digital advertising [1] Group 1 - The company has successfully transitioned to profitability, marking a significant milestone after two years of losses [1] - Digital advertising investments have played a crucial role in enhancing the platform's revenue streams [1]

Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies and confidence, including daily updates, research reports, and stock screens [1] Zacks Style Scores - Zacks Style Scores provide a rating system for stocks based on value, growth, and momentum, helping investors identify securities likely to outperform the market in the short term [2] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales, aiming to find attractive investment opportunities [3] Growth Score - The Growth Score assesses a company's future prospects by analyzing projected and historical earnings, sales, and cash flow to identify stocks with sustainable growth potential [4] Momentum Score - The Momentum Score identifies trends in stock prices and earnings outlooks, helping investors time their positions based on recent price changes and earnings estimate revisions [5] VGM Score - The VGM Score combines the Value, Growth, and Momentum Scores, providing a comprehensive indicator for investors who utilize multiple investment strategies [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.86% since 1988, outperforming the S&P 500 [7] - There are typically over 800 stocks rated 1 or 2, making it essential for investors to utilize Style Scores to narrow down their choices [8] Stock to Watch: Roku - Roku is a leading TV streaming platform in North America, currently rated 1 (Strong Buy) with a VGM Score of B and a Growth Style Score of A, indicating a projected year-over-year earnings growth of 255.9% for the current fiscal year [11] - Recent upward revisions from eight analysts have increased Roku's earnings estimate for fiscal 2026 by $0.81 to $2.10 per share, with an average earnings surprise of +97.8% [12]

Core Insights - SoftBank Group exited its position in Nvidia, selling approximately 32.11 million shares, reducing its stake to zero by the end of Q4 2025, with the sale valued between $5.5 billion and $6.6 billion [1][3] Portfolio Adjustments - SoftBank significantly reduced its stake in Taiwan Semiconductor Manufacturing Company by 16,637,036 shares, a 36.90% decrease, leaving it with 28,503,696 shares valued at approximately $5.78 billion, representing 37.42% of its disclosed portfolio [4] - The firm fully exited its position in Microsoft, selling 2,536,481 shares, resulting in a 100% reduction [4] - SoftBank also reduced its holdings in Lemonade by 2,638,426 shares, a 74.03% decrease, ending with 925,496 shares valued at about $65.9 million [5] - The company trimmed its Roku holdings by 1,030,976 shares, a 7.03% reduction, leaving 13,636,515 shares worth roughly $55.8 million [5] New Investments - SoftBank initiated a new position in Uber Technologies, acquiring 18,497 shares, and established a new stake in AbCellera Biologics with 345,161 shares [5]

Core Viewpoint - The consumer discretionary sector has shown moderate growth over the past year, but is currently experiencing a negative year-to-date performance, prompting the identification of five stocks with potential for investment despite the sector's recent slump [2][4]. Consumer Discretionary Sector Overview - The consumer discretionary sector is characterized as growth-oriented, with share prices expected to increase over the long term. This sector is sensitive to market interest rate movements and typically exhibits an inverse relationship with them [3]. Interest Rate Impact - The Federal Reserve's recent easy monetary policies, including significant cuts to the benchmark lending rate, have created uncertainty regarding interest rate trajectories for the current year. Additionally, concerns about AI's impact on corporate profits have affected growth-oriented stocks [4]. Selected Stocks for Investment - Five consumer discretionary stocks have been identified for investment based on their favorable Zacks Rank: Ralph Lauren Corp., Roku Inc., Airbnb Inc., FOX Corp., and Carnival Corporation & plc. Each stock carries a Zacks Rank of 1 (Strong Buy) or 2 (Buy), with potential for double-digit price upside in the short term [5]. Ralph Lauren Corp. (RL) - Ralph Lauren has a Zacks Rank of 2 and is benefiting from its "Next Great Chapter: Drive Plan," which emphasizes brand elevation and operational agility. The company expects revenue growth in the high-single to low-double digits for fiscal 2026, with gross margin increasing by 40-80 basis points and operating margin expanding by 100-140 basis points [6][7]. - The expected revenue and earnings growth rates for Ralph Lauren are 11.7% and 30.5%, respectively, for the current year, with a short-term average price target indicating an 11.8% increase from the last closing price of $369.18 [8]. Roku Inc. (ROKU) - Roku holds a Zacks Rank of 1, showcasing strong platform revenue growth driven by innovative advertising and streaming services. The company has achieved significant household penetration and improved profitability through strong free cash flow generation [9][10]. - Roku's expected revenue and earnings growth rates are 15.4% and over 100%, respectively, for the current year, with a short-term average price target suggesting a 35.7% increase from the last closing price of $90.06 [13]. Airbnb Inc. (ABNB) - Airbnb has a Zacks Rank of 2 and is experiencing growth in Nights and Experiences Booked, positively impacting its Gross Booking Value. The company benefits from increasing guest demand and a recovery in cross-border travel [14][15]. - The expected revenue and earnings growth rates for Airbnb are 10.8% and 18.1%, respectively, for the current year, with a short-term average price target indicating a 20.4% increase from the last closing price of $121.35 [16]. FOX Corp. (FOX) - FOX has a Zacks Rank of 1 and produces a variety of content, including news and sports. The expected revenue and earnings growth rates for FOX are -0.9% and -2.3%, respectively, for the current year, but the Zacks Consensus Estimate for earnings has improved by 6.9% over the last 30 days [17]. - The short-term average price target for FOX suggests a 36.1% increase from the last closing price of $51.56 [18]. Carnival Corporation & plc (CCL) - Carnival has a Zacks Rank of 1 and is benefiting from strong demand, increased booking volumes, and a focus on marketing to attract new customers. The company emphasizes the role of digital marketing and AI in enhancing effectiveness [19][20]. - The expected revenue and earnings growth rates for Carnival are 4.6% and 12.9%, respectively, for the current year, with a short-term average price target indicating a 19.1% increase from the last closing price of $31.77 [21].

Core Viewpoint - Roku's stock experienced a significant increase following its fourth-quarter earnings release, showcasing strong profitability and positive guidance for future growth, despite being down approximately 17% year-to-date [1][2]. Financial Performance - Roku's fourth-quarter revenue rose 16% year over year to about $1.4 billion, driven by an 18% increase in high-margin platform revenue, which constitutes 88% of total revenue [4]. - The company's fourth-quarter net income was approximately $80 million, a turnaround from a loss of $36 million in the same quarter last year, while full-year 2025 net income reached $88 million, up from a $129 million loss in 2024 [6]. Business Momentum - Streaming hours on Roku's platform increased by 15% year over year in 2025, with the Roku Channel growing to represent 6.3% of all TV streaming on its platform in December, up from 4.6% in December 2024 [5]. - Roku's management expects first-quarter platform revenue to grow over 21% year over year, contributing to an overall revenue increase of about 18% for the same period [8]. Profitability Outlook - The company guided for adjusted EBITDA of $130 million in Q1 and $635 million for the full year of 2026, reflecting an increase from $421 million in adjusted EBITDA for 2025 [9]. - Roku anticipates net income for 2026 to reach $325 million, significantly up from $88 million in 2025, indicating strong expectations for profitability improvement [9]. Market Position and Valuation - Despite the positive financial momentum, Roku's shares are trading at over 40 times the management's forecast for full-year earnings in fiscal 2026, raising concerns about the sustainability of such a premium valuation [10]. - The company faces intense competition from larger tech firms, which poses risks to its market leadership and future growth potential [11].

Roku, Inc. (NASDAQ:ROKU) ranks among the best innovative stocks to buy according to Wall Street analysts. On February 6, Oppenheimer upgraded Roku, Inc. (NASDAQ:ROKU) from Perform to Outperform with a price target of $105. The revision comes after ROKU stock fell 25% from its 52-week high, compared with a 4% drop in the NASDAQ over the same period. Oppenheimer identified a number of potential drivers for Roku, Inc. (NASDAQ:ROKU), which include the recently announced Amazon DSP collaboration, greater inte ...

Core Viewpoint - The article emphasizes the importance of conducting personal in-depth research and due diligence before making investment decisions, highlighting the inherent risks involved in trading [3]. Group 1 - The analysis is intended solely for informational purposes and should not be interpreted as professional investment advice [3]. - There is a clear disclaimer regarding the lack of any stock, option, or derivative positions in the companies mentioned, indicating a neutral stance [2]. - The article expresses the author's personal opinions and does not reflect the views of any affiliated organization [4].

Core Insights - Roku has seen significant activity from institutional investors, with GAMMA Investing LLC increasing its holdings by 9.5% in Q3, now owning 1,114 shares valued at $112,000 after acquiring 97 additional shares [1] - The company's stock performance shows a market capitalization of $13.31 billion, with a price-to-earnings ratio of 158.00 and a beta of 1.99, indicating high volatility [2] - Roku reported earnings of $0.53 per share for the last quarter, surpassing analysts' expectations of $0.28, with a revenue of $1.39 billion, reflecting a 16.1% year-over-year increase [2] Institutional Holdings - Institutional investors collectively own 86.30% of Roku's stock, indicating strong institutional interest [1] - Envestnet Asset Management Inc. increased its stake by 29.8% in Q3, owning 226,867 shares valued at approximately $22.72 million [5] Insider Trading - Insider Gilbert Fuchsberg sold 3,250 shares at an average price of $108.78, resulting in a 5.21% decrease in his position [3] - In the last ninety days, insiders have sold a total of 234,790 shares valued at $24.22 million, with corporate insiders owning 13.98% of the stock [3] Analyst Ratings - Recent analyst reports show a consensus rating of "Moderate Buy" for Roku, with an average price target of $123.85 [6] - Analysts have issued various ratings, including a "market outperform" rating with a target price of $145.00 and an "outperform" rating with a target of $150.00 [4][6] Company Overview - Roku, Inc. is a technology company that operates a proprietary streaming platform, providing access to a wide array of entertainment content through internet-connected devices and smart TVs [7] - The company's product lineup includes streaming players and sticks that connect to televisions via HDMI, delivering the Roku OS experience [8]

Core Insights - Roku Inc. shares increased over 10% intra-day following the release of fourth-quarter earnings that surpassed analyst expectations and provided optimistic guidance for 2026 [1] Financial Performance - The company reported an adjusted EPS of $0.53, significantly higher than the consensus estimate of $0.27 [2] - Total revenue reached $1.38 billion, aligning with analyst expectations and reflecting a 16% year-over-year growth [2] - Platform revenue, which encompasses advertising and content distribution, grew by 18% to $1.22 billion, while Devices revenue saw a 3% increase to $171 million [2] Future Projections - For Q1 2026, Roku forecasts revenue of $1.2 billion, surpassing the consensus estimate of $1.17 billion [3] - The full-year revenue for 2026 is projected to be $5.5 billion, exceeding analyst projections of $5.34 billion [3] - Streaming hours increased by 15% year-over-year, totaling 145.6 billion for the full year of 2025 [3] Advertising and Market Position - Roku noted robust growth in advertising, with video advertising growth on its platform outpacing the U.S. OTT market and the broader digital advertising industry in 2025 [4] - The Roku Channel was the second most engaged app on the platform in the U.S., accounting for 6.3% of total TV streaming in December 2025, up from 4.6% the previous year [3] - The company anticipates reaching 100 million streaming households globally by 2026 [4] Revenue Growth Expectations - For 2026, Roku expects Platform revenue growth of 18% to $4.89 billion, with a gross margin projected between 51% and 52% [4] - The company aims to maintain disciplined operations while continuing to invest in platform expansion [4]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the year ended December 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-38211 Roku, Inc. (Exact name of Registrant as specified in its charter) (State or other jurisdiction of incorporation or (Primary standard industrial code number) (I.R.S. employer iden ...