Roku is attracting new members, and viewers are engaging with the platform at higher rates. It's still reaching for net profitability, but it reported its fourth straight quarter of positive adjusted EBITDA and free cash flow.
Roku Inc. NASDAQ: ROKU is a streaming media technology platform provider and device manufacturer. It's a benefactor in the fastest-growing digital media segment, connected TV (CTV).
Roku stock (NASDAQ: ROKU), a company that sells streaming media players, digital content, and advertising, has seen its stock decline by close to 17% this year, trading at levels of about $76 per share. This compares to Netflix stock, (NASDAQ: NFLX), which has gained about 44% over the same period.
Zacks.com users have recently been watching Roku (ROKU) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Despite the recent uncertainty and narrative dragging the S&P 500 sideways, such as the historically slow September and the aggressive pivot by the Federal Reserve (the Fed) by cutting up to 50 basis points (bps) instead of the expected 25bps, which might not be as bullish as the market had thought it would be. Investors can tell this is so by the market's reaction.
Roku (ROKU) closed at $77.45 in the latest trading session, marking a +0.12% move from the prior day.
Roku Inc. ROKU is gearing up for a platform monetization sprint, and investors are starting to tune in. After a strong showing at the JPMorgan U.S. All Stars Conference in London, Roku's management has made one thing crystal clear: it's all about accelerating platform revenue growth.
Roku's valuation is at a historically low forward price/sales ratio of 2.71x, suggesting potential for a stock price rebound. CEO Anthony Wood highlighted growth in Streaming Households, Streaming Hours, and Platform Revenue in Q2 2024. Despite high costs, Roku's improving net margins and fiscal discipline signal potential for positive net income and cash flow in upcoming quarters.
Roku Channel's strategic content, smart ads and user growth make Roku stock worth a watch amid hurdles in maintaining profitability and market share.
Roku stock gained nearly 6% on Thursday and has climbed 11% over the past week. What's driving this upward momentum?
Roku's ad monetization strategy, partnerships with DSPs, and user engagement improvements are driving growth, with platform revenue up 11% and user metrics at record highs. Device sales surged ~39% in Q2, with potential for further growth during the holiday season, boosting both ad revenue and overall prospects. Valuation remains depressed despite strong performance, presenting a buy opportunity; Roku is expected to achieve 13-15% CAGR growth through CY25.
Roku (ROKU) concluded the recent trading session at $74.69, signifying a +0.76% move from its prior day's close.