Core Viewpoint - Roku's stock experienced significant volatility, reaching a 52-week high after strong financial results but subsequently losing over a third of its value since then [1][2]. Financial Performance Expectations - Roku is expected to report revenue of $1.005 billion for the first quarter, representing a 14% increase year-over-year, with a 16% increase in its ad-driven platform business [3]. - The adjusted EBITDA is projected to be $55 million, indicating a nearly 35% year-over-year increase, although it reflects a sequential decline from the previous holiday quarter [4]. - A net loss of $40 million is anticipated for the quarter, translating to approximately $0.27 per share, which is an improvement from the $50.9 million loss in the same quarter last year [5]. Analyst Sentiment - Analysts have recently reduced their price targets for Roku, with cuts of $36 and $25, but the new targets of $93 and $100 still suggest a potential upside of 34% to 44% [6]. - Despite concerns about an ad recession and tariff impacts, analysts maintain a bullish outlook on Roku's ability to meet its full-year bottom-line guidance [7]. Market Dynamics - The advertising market is expected to face challenges in a softening economy, but Roku is likely to gain market share as spending shifts from traditional TV to connected TV platforms [11]. - Roku started the quarter with 89.8 million streaming households, showing increased engagement and a rising average revenue per user (ARPU) for four consecutive quarters [12].