Ruchi Gupta

Wed, Jun 18, 2025, 5:00 AM2 min read

Roku (ROKU) is a key player in streaming TV, offering add-on smart devices, smart TVs, and a streaming tech platform that facilitates advertising. It connects many popular streaming services like Amazon Prime Video, Hulu, Disney+, Netflix, YouTube, and more.

Roku’s stock is currently outperforming the S&P 500 Index ($SPX), up 8.5% in the year to date. Shares are up an even more impressive 50% over the past year.

• Trump Is Giving Tesla’s Robotaxis a Leg Up Ahead of June 22. Should You Buy TSLA Stock Now?

• Dear Nvidia Stock Fans, Mark Your Calendars for July 16

• The Trump Family Is Betting Big on Mobile Phones. Should Apple Stock Investors Be Worried?

• Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now!

Roku posted its first-quarter 2025 results on May 1. The company reported a net loss of $27.4 million or $0.19 per share. The figure is narrower than Wall Street’s anticipated loss of $0.27 per share. The company also generated revenue of $1.02 billion during the quarter, up 16% year-over-year and  surpassing analysts' $1 billion estimate.

Platform revenue came in at $880.82 million, up 17% year-over-year, while Devices revenue totaled $139.9 million, up 11%.

For the ongoing Q2, the company expects revenue of $1.07 billion signaling 11% growth from the prior-year period. Platform revenue is anticipated to grow 14% while Devices revenue is expected to grow 10%. Further, the company expects adjusted EBITDA of $70 million with gross profit of $465 million.

Roku’s stock surged more than 10% on Monday, June 16 following its announcement of a partnership with Amazon (AMZN). Through a partnership with Amazon Ads, the company is reported to gain access to more than 80% of households that have a connected TV.

The partnership will give advertisers access to 80 million connected TVs in the United States through The Roku Channel, Amazon Prime Video, and streaming services available on Roku or Amazon Fire TV. The integration allows Amazon’s demand-side platform to identify Roku viewers, enhancing ad targeting. Advertisers are expected to have access to the new technology by Q4.

Roku has a consensus “Moderate Buy” rating from analysts with a mean price target of $89.25, reflecting upside potential of 11%.

Of the 30 analysts in coverage, 16 give it “Strong Buy” ratings, two give it “Moderate Buy” ratings, 11 give it “Hold” ratings, and one gives it a “Strong Sell” rating.