Streaming stock Roku Inc (NASDAQ:ROKU) is sinking, down 9.7% at $60.75 at last glance.
While the top- and bottom-line numbers for Roku (ROKU) give a sense of how the business performed in the quarter ended March 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Roku (ROKU) came out with a quarterly loss of $0.19 per share versus the Zacks Consensus Estimate of a loss of $0.27. This compares to loss of $0.35 per share a year ago.
Roku posted solid first-quarter results, topping $1 billion in revenue and narrowing its losses. The company posted a loss of 19 cents a share on a diluted basis, which beat Wall Street forecasts and showed improvement from the year-earlier's loss of 35 cents. Revenue also nipped expectations, coming in at $1.
Roku's strategies include better home screen monetization, expanding third-party ad partnerships, and growing subscription revenue, which should drive long-term platform revenue. Its fourth-quarter 2024 report shows 12% growth in streaming households and an 18% increase in streaming hours, indicating strong user engagement. Risks include increased competition, device margin pressure, and advertising market volatility, which could impact revenue growth.
Roku Inc (NASDAQ:ROKU), one of our top stock picks of 2025 , is up 2.4% to trade at $69.75 today, almost 24 hours away from the streaming company's first-quarter earnings report.
ROKU shows promise, but valuation reflects growth. Investors can hold and wait for a better entry amid Q1 margin pressure and rising ad competition.
Beyond analysts' top -and-bottom-line estimates for Roku (ROKU), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended March 2025.
One way to navigate current market volatility is to buy shares of promising companies on dips. Investing while stocks are down can lead to significant long-term returns since every bear market will eventually give way to a bull run that will be even longer, according to the historical record.
Roku (ROKU) closed the most recent trading day at $65.75, moving +1.7% from the previous trading session.
ROKU launches a new device line-up, but with the device business still being under pressure, investors can consider holding the stock for now.
ROKU's bottom-line reversal may soon be here, as observed in the promising FY2025 guidance and FY2026 commentary, thanks to its improving operation scale & user monetization. The same has been observed in its promising performance metrics, with it underscoring its potential reversal from the prior cash burn. This is on top of its growing CTV/ streaming market share, as market analysts expect further advertising growth over the next few years.