Roku (ROKU) shares have lost 10.3% in the trailing three months, underperforming the Zacks Consumer Discretionary sector and the Zacks Broadcast Radio and Television industry’s growth of 2.6% and 14.4%, respectively.The dip in Roku’s shares can be attributed to investor concerns around potential tariff impacts on the company’s Devices segment. Although Roku’s TV unit sales might decline slightly as a possible outcome of tariffs, it is unlikely to hurt the company’s market share. Roku has a diversified manuf ...

Core Viewpoint - Roku Inc. reported positive first-quarter results, but shares fell in early trading, indicating market skepticism despite the upbeat earnings [1] Group 1: Financial Performance - Roku's first-quarter revenue grew by 16% year-on-year, reaching $1.02 billion, with adjusted EBITDA increasing by 37% [2][4] - Management projected second-quarter adjusted EBITDA of $70 million, with anticipated revenue growth decelerating to 11% [3][2] - Analysts noted that Roku maintained its full-year Platform segment revenue guidance of $3.95 billion, reflecting a 12% year-on-year increase [4][6] Group 2: Analyst Ratings and Price Targets - Rosenblatt Securities maintained a Neutral rating, reducing the price target from $100 to $75, citing that the results were near expectations [2] - Needham maintained a Buy rating with a price target of $88.50, highlighting strong quarterly results [4] - JPMorgan reaffirmed an Overweight rating with a price target of $75, noting that Platform revenues grew by 17% in the first quarter [6] Group 3: Market Position and Future Outlook - Analysts believe Roku is likely to be more resilient due to programmatic integrations and a diversified revenue base [7] - Guggenheim projected Platform revenue growth of 14% for the second quarter, higher than consensus expectations [8] - Analysts indicated that while there may be a slight deceleration in revenue growth in the latter half of the year, Roku remains a top pick for 2025 [5][14]