
Roku (ROKU) Stock Forecast & Price Target
Roku (ROKU) Analyst Ratings
Bulls say
Roku's financial performance indicates a positive outlook, with 4Q24 revenue increasing by 22% year-over-year to $1.201 billion, surpassing estimates by approximately $60 million. The Roku Channel has gained significant traction, accounting for 4.9% of streaming time in January, marking a 2.1-point year-over-year increase, which supports revenue growth through enhanced content partnerships and improved user experience. Additionally, Roku is expected to see continued platform revenue growth driven by third-party demand partnerships and operational discipline, with projections for at least stable year-over-year revenue growth and EBITDA starting at $500 million, supported by over $2 billion in cash and no debt.
Bears say
Roku faces significant challenges due to increasing competition in the TV operating system market, illustrated by competitors like Amazon, Google, and Walmart, who possess substantial financial resources to support their devices and software. Additionally, the concentration of revenue from major retailers such as Amazon, Best Buy, and Walmart, which accounted for 71% of Roku's device revenue in 2023, raises concerns about the company's reliance on these partnerships and potential vulnerability if disputes arise. Moreover, growing consolidation among streaming services could diminish the value of Roku's platform and reduce its leverage in negotiations, potentially impacting advertising revenue and overall growth.
This aggregate rating is based on analysts' research of Roku and is not a guaranteed prediction by Public.com or investment advice.
Roku (ROKU) Analyst Forecast & Price Prediction
Start investing in Roku (ROKU)
Order type
Buy in
Order amount
Est. shares
0 shares