Keybanc analyst Justin Patterson upgraded Roku ROKU from Sector Weight to Overweight with a $115 price target on Wednesday.Roku is turning the corner on monetization and also demonstrating more expense discipline, according to Patterson.Thus, the analyst raised his 2025E and 2026E EBITDA by 4% and 6% to $362 million and $530 million (both 5% above the Street consensus), and established 2027E revenue of $6.0 billion (7% above Street) and EBITDA of $743 million (12% above Street).Also Read: Roku’s Amazon Deal ...

Core Insights - The streaming content industry is characterized by a competitive landscape where companies are investing heavily in exclusive content to differentiate themselves and capture market share [4] Company Summaries Netflix Inc. (NFLX) - NFLX exceeded the Zacks Consensus Estimate for earnings in Q1 2025, maintaining strong engagement levels despite economic challenges [7] - The launch of the Ad Suite in the U.S. is expected to drive subscriber and ARPU growth, with plans for international expansion in Q2 [8] - NFLX's expected revenue and earnings growth rates for the current year are 14% and 27.7%, respectively, with a 3% improvement in earnings estimates over the last 60 days [11] Roku Inc. (ROKU) - ROKU's streaming hours increased by 82% year-over-year, and its OS is the top-selling TV platform in the U.S. [9][12] - The Roku Channel reached approximately 145 million U.S. households, maintaining a strong position in terms of reach and engagement [12] - ROKU's expected revenue and earnings growth rates for the current year are 10.5% and 80.9%, respectively, with a 10.5% improvement in earnings estimates over the last 30 days [13] Fox Corp. (FOXA) - FOXA reported strong fiscal Q3 results driven by increased affiliate fees and digital monetization at FOX News Media [14] - The company's political ad revenues are strengthening pricing across its news and sports brands, with popular primetime content attracting advertisers [15][16] - FOXA's expected revenue and earnings growth rates for the current year are 15.2% and 31.8%, respectively, with a 1.6% improvement in earnings estimates over the last 30 days [17]

Key Takeaways ROKU and CMCSA are competing in streaming, but ROKU shows stronger growth and investor momentum in 2025. ROKU's gains come from rising ad revenues, content discovery tools and growth of The Roku Channel. CMCSA's slower earnings growth and Peacock's ongoing losses weigh on its 2025 investment appeal.Roku (ROKU) and Comcast (CMCSA) are both active players in the fast-growing streaming market, each with a unique approach. Roku has built its platform around ad-supported streaming and user-friend ...

28 May 2025 | 3:15AM EDT Americas Media TV Viewership Tracker: L3 through week ending May 25th, 2025 and April Gauge We refresh our Nielsen TV ratings tracker for our US Media coverage (DIS, CMCSA, PARA, WBD, FOXA) that includes: 1) traditional ACM (average commercial minute) prime time and total day ratings across broadcast and cable; and 2) the Gauge for total TV viewing share by medium (reported monthly). This edition focuses on the April Gauge, C3 cable and broadcast ratings through week ending May 11th ...

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 ...

On May 27, the Conference Board reported that the U.S. Consumer Confidence Index has rebounded this month after five consecutive months of decline. The final reading for May came in at 98, significantly above the Zacks Consensus Estimate of 86. The metric for April was revised marginally downward to 85.7 from 86 reported earlier. May's consumer optimism was primarily driven by expectations of a U.S.-China trade deal, the delay by the Trump administration to impose 50% tariffs on the European Union and the o ...

Roku (ROKU) and Paramount Global (PARA) are both competing for dominance in the ad-supported streaming space, but their recent performances paint contrasting pictures. Roku continues to scale its platform and expand its advertising toolkit, while Paramount Global leans on franchise content and viewer engagement across Paramount+ and Pluto TV.With advertising dynamics shifting and investors seeking resilient growth in streaming, the key question is: Which stock offers better upside in 2025? Let’s delve deepe ...

An updated edition of the March 12, 2025 article.The entertainment industry has dramatically evolved over the past 20 years, shifting from conventional cable TV to the era of on-demand digital streaming. While early streaming trials appeared in the 1990s, real momentum came with YouTube’s launch in 2005 and Netflix’s rollout of its video-on-demand service in 2007. The combination of faster broadband, widespread smartphone adoption and changing consumer habits has made streaming the leading mode of media con ...

Core Viewpoint - Roku is expected to report first-quarter 2025 results with total net revenues projected at $1.005 billion, reflecting a 14% year-over-year increase, driven by strong Platform revenue growth of 16% [1][8] Revenue Estimates - The Zacks Consensus Estimate for first-quarter revenues is set at $1 billion, indicating a year-over-year growth of 13.96% [2] - The consensus estimate for Devices revenues is $127 million, while Platform revenues are expected to reach $877 million [13] Earnings Expectations - Roku anticipates a total gross profit of $450 million and adjusted EBITDA of $55 million for the first quarter [1] - The consensus mark for loss is estimated at 20 cents per share, representing a year-over-year growth of 42.86% [2] Earnings Surprise History - In the last reported quarter, Roku achieved an earnings surprise of 45.45%, with an average surprise of 55.07% over the trailing four quarters [5] Factors Influencing Results - Platform growth remains robust, with management estimating a 16% year-over-year increase, supported by streaming services distribution and advertising activities [8] - However, Devices revenues and gross profit were impacted by increased seasonal discounting, leading to excess inventory and slight pressure on gross margins [7][10] Competitive Landscape - Roku faces intensified competition in the advertising space as major players like Netflix, Warner Bros. Discovery, and Disney expand their ad-supported streaming offerings [11] - The absence of political advertising compared to the previous quarter may have also tempered advertising momentum [8] International Expansion - Roku's international growth into markets such as Mexico, Canada, and the United Kingdom is expected to drive user growth, although immediate revenue impact is limited as the focus is on scaling [12] Valuation Metrics - Roku currently trades at a price-to-cash flow ratio of 43.86X, significantly higher than the industry average of 31.54X, indicating high growth expectations but an unattractive valuation for value investors [18] Investment Considerations - While Roku shows strong platform fundamentals and user engagement, caution is advised due to elevated inventory levels, margin pressures, and competitive challenges in the ad-supported streaming market [21][22]