Latest news with #ROKU
Yahoo
3 days ago
- Business
- Yahoo
Roku Trades at a P/CF of 42.86X: Should You Still Buy the Stock?
Roku ROKU shares are trading at a premium, as suggested by a Value Score of D. In terms of the price-to-cash flow ratio, ROKU is currently trading at 42.86X, above the Zacks Broadcast Radio and Television industry average of of March 31, 2025, Roku generated $310.1 million in operating cash flow over the trailing twelve months, highlighting strong cash generating ability. We believe Roku's growing scale across U.S. households and its expanding programmatic ad capabilities justify the premium valuation. The company is benefiting from both performance-driven advertising solutions and a differentiated content discovery experience. Do these factors make ROKU stock a compelling buy at current levels? Let's find out. ROKU's Price/Cash Flow Ratio Image Source: Zacks Investment Research ROKU's Initiatives and Partnerships Drive Subscriptions Roku is ramping up its subscription efforts by enhancing the Roku Experience with personalized features like an AI-powered content row that promotes premium titles, free trials and bundles. A seamless billing system and rising streaming demand have been helping Roku build tens of millions of billed subscriptions each the first quarter of 2025, Roku acquired Frndly TV, adding more than 50 live and on-demand channels, and partnered with Apple TV+ to offer Season 1 of Severance for free, along with a three-month trial. These moves aim to drive engagement and boost conversions, with more initiatives expected this year. ROKU Expands Offering With Roku Select Series TVs Roku has launched its first Roku-made TVs in Canada, available exclusively at Best Buy. The new Roku Select Series includes QLED 4K models from 50" to 75" and smaller 4K and HD variants, all powered by the intuitive Roku OS. With features like Smart Picture, Bluetooth headphone support, a built-in remote finder and access to 200-plus live TV channels, the TVs are built to enhance the streaming experience for Canadian launch marks a strategic step forward for Roku, allowing it to control both the hardware and software experience, which can significantly deepen user engagement. By expanding its Roku-made TV line into Canada, the company strengthens its international presence and creates a more direct channel to grow its advertising business and drive subscriptions. ROKU's Efforts to Stay Competitive in the Ad Market Roku competes in a crowded ad-supported streaming market alongside giants like Netflix NFLX, Paramount Global PARA and Disney DIS. As of May, Netflix had 94 million users on its ad-supported tier, up from 70 million in November. Paramount+, the streaming service of Paramount Global, is expanding its basic ad tier to Germany, Switzerland and Austria, while Disney's ad-supported user base hit 157 million globally in January 2025, including 112 million in the United stay competitive, Roku is doubling down on ad-supported streaming through tech upgrades and strategic alliances. Its new partnership with Amazon Ads via Amazon DSP expands reach across Roku and Fire TV, helping advertisers tap into a large base of authenticated viewers. Early results showed 40% more unique reach with the same budget. Combined with Roku's AI-powered Home Screen and partnerships with Adobe and INCRMNTAL, these efforts are driving stronger monetization and reinforcing Roku's momentum in ad-supported streaming. ROKU's Earnings Estimate Revisions Show Upward Trend The Zacks Consensus Estimate for 2025 loss is pinned at 18 cents per share, which has narrowed by a penny over the past 30 days, indicating growth of 79.78% from the figure reported in the year-ago consensus mark for 2025 total revenues is pegged at $4.55 billion, suggesting year-over-year growth of 10.63%. Roku's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 51.15%. Roku, Inc. Price and Consensus Roku, Inc. price-consensus-chart | Roku, Inc. Quote ROKU's Share Price Movement ROKU shares have risen 22.2% year to date, underperforming the Zacks Broadcast Radio and Television industry's growth of 30.9% but outperforming the Zacks Consumer Discretionary sector's return of 10.3%. The company is constantly innovating across its platform and building strategic partnerships that have positively impacted investor sentiment. Roku has a strong liquidity position that allows it to innovate and grow, and meet its working capital requirements. As of March 31, 2025, cash and cash equivalents were $2.26 billion compared with $2.16 billion as of Dec. 31, 2024, and Roku had no long-term debt which further solidifies Roku's cash balance. If we look at its competitors, Netflix, Paramount Global and Disney shares have gained 40.3%, 24% and 7.6%, respectively, in the same time frame. ROKU's YTD Price Performance Image Source: Zacks Investment Research Conclusion: Time to Buy ROKU Stock? Given Roku's expanding subscription base, strategic hardware growth and rising momentum in ad-supported streaming, the company is well-positioned for long-term success. Its partnerships with major players like Amazon and Apple, coupled with tech-driven innovations and a solid balance sheet, reinforce its growth potential. Despite trading at a premium, Roku's ability to consistently beat earnings estimates justifies the valuation. With strong fundamentals, zero long-term debt and upward revisions in earnings, investors should consider buying ROKU stock as it continues to strengthen its platform and unlock new monetization currently sports a Zacks Rank #1 (Strong Buy) and has a Growth Score of A, a favorable combination that offers a strong investment opportunity, per the Zacks proprietary methodology. You can see the complete list of today's Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Roku, Inc. (ROKU) : Free Stock Analysis Report Paramount Global (PARA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Business Insider
10-07-2025
- Business
- Business Insider
Cathie Wood Makes Her Largest Trade of the Day in This AI Stock, 7/10/2025
Popular investor Cathie Wood's ARK Invest made key portfolio moves on Wednesday, July 9, with the spotlight on a major buy in the AI healthcare space. As per ARK's daily trade disclosures, the largest transaction of the day was a fresh purchase in Tempus AI (TEM). At the same time, the fund continued to trim its holdings in streaming platform Roku (ROKU) and Block (XYZ), a digital payments company formerly known as Square. Don't Miss TipRanks' Half-Year Sale Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Wood Loads Up on Tempus AI On Wednesday, Cathie Wood's ARK Invest made its largest trade of the day by purchasing 150,563 shares of Tempus AI, valued at around $8.8 million. The bulk of the buy came through the ARK Innovation ETF (ARKK), with additional shares acquired via the ARK Genomic Revolution ETF (ARKG). Tempus AI, which applies AI to improve clinical decisions in healthcare, continues to attract interest from Cathie Wood as part of her focus on disruptive technologies. Wall Street's Take on TEM On TipRanks, Tempus AI stock has a Moderate Buy consensus rating based on five Buy and three Hold ratings. Also, the average TEM price target of $68.86 implies a 17.89% upside potential from current levels. Year-to-date, TEM stock has gained 73%. Wood Trims Holdings in ROKU and BLOCK Stocks ARK continues to trim its position in Roku stock. On Wednesday, it sold 50,823 shares of Roku, totaling nearly $4.5 million, through ARKK. This marks a second straight day of cuts in Roku, hinting at a shift away from streaming-related stocks. Just yesterday, ARK trimmed its position in Roku, selling 20,813 shares worth about $1.83 million. Meanwhile, the firm also sold 56,503 shares of Block for more than $6.5 million. This comes amid a broader move by ARK to reduce its fintech exposure. Turning to Wall Street, Roku stock scores a Moderate Buy consensus rating, with the average Roku stock price target of $91.56 indicating a 3.31% possible decline from current levels. Meanwhile, XYZ also earns a Moderate Buy consensus rating, with the average Block stock price target reflecting a 1.55% downside risk. Notably, Roku has risen 19% so far this year, while Block is down 19%.
Yahoo
06-07-2025
- Business
- Yahoo
2 Stocks to Buy With $5,000 and Hold for a Decade
Netflix and Roku are longtime streaming leaders with excellent prospects. Both companies should benefit as streaming viewing hours increase. They can deliver above-average returns over the next decade. These 10 stocks could mint the next wave of millionaires › Streaming giants Netflix (NASDAQ: NFLX) and Roku (NASDAQ: ROKU) have a lot in common. The former was an early investor in the latter. They both dominate their respective niches in the streaming industry and have produced market-beating returns over the long term. Here's one more thing Netflix and Roku have in common: excellent long-term prospects that could lead to substantial gains over the next decade. Here's the bull thesis for these market leaders. Netflix has been firing on all cylinders thanks to its excellent financial results. In the first quarter, the company's revenue increased by 12.5% year over year to $10.5 billion. Netflix's earnings per share of $6.61 was up 25%, while its free cash flow came in at $2.7 billion, 24.5% higher than the year-ago period. Netflix is posting strong financials despite mounting competition in the streaming industry, which some thought would eventually erode its market share. But as evidence of the strength of its brand power, the company recently increased its prices once again. Netflix's ability to thrive even as new streaming services keep popping up says a lot about its prospects. Streaming still has significant room to grow as the switch from cable continues. The company estimates a $650 billion revenue opportunity, which dwarfs its trailing-12-month revenue of $40.2 billion. Over the next decade, it could make significant headway into this enormous, untapped potential. If Netflix can grab 10% of its total addressable market, its top line should grow at a good clip through 2035. The company's strategy to achieve that feat should remain the same: Create content that viewers love to watch and that spreads through word of mouth, leading to more paid subscribers on its platform, more data to help guide content production, and even better content. A wonderful network effect has powered Netflix's success for a while now. There will be some challenges, including more competition and economic issues that might make people hesitant to put up with its price hikes, among others. However, Netflix has consistently demonstrated its ability to perform well despite these challenges, and I expect the company to continue doing so over the next decade. The stock is still worth buying after the impressive run it has had over the past year. With $5,000, investors can afford three of the company's shares. Roku's platform enables people to access most of the major streaming services, making the company's ecosystem an attractive hub for advertisers to target consumers. That's how Roku makes the lion's share of its revenue. Although it has encountered some headwinds in recent years -- including a slowdown in ad spending and declining average revenue per user (ARPU) -- Roku has somewhat recovered over the trailing-12-month period. In the first quarter, the company's revenue increased by 16% year over year to approximately $1 billion. Roku's streaming hours were 35.8 billion, 5.1 billion more than the year-ago period. However, Roku remains unprofitable, although it is also making progress on the bottom line. The streaming leader's net loss per share in the period came in at $0.19, much better than the $0.35 reported in the prior-year quarter. Although long-term investors may be concerned about the persistent red ink on the bottom line, recent developments show why Roku is a promising stock to hold onto. The company signed a partnership with Amazon, another leader in the connected TV (CTV) space. The two will grant advertisers access to their combined audiences, comprising 80 million households in the U.S. and more than 80% of the CTV market, through Amazon's demand-side ad platform. This initiative will give advertisers far more bang for their buck, as early tests of the integration show. It also highlights the value of Roku's ecosystem, the leading one in the CTV space in North America. Over time, the company's platform will attract more advertising dollars, especially as streaming viewing time continues to increase. That's why investors should look past the red ink, for now. Roku's long-term prospects remain intact. Even its ARPU decline in recent quarters was due to its focus on expanding its audience in certain international markets; it is still early in its monetization efforts in those regions. As Roku's initiatives in these places ramp up, while the company continues to make headway in more mature markets, Roku should eventually become profitable and deliver strong returns along the way. The stock is worth investing in today for the next decade, and $5,000 is good for 56 shares of the company with some spare change. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $413,238!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $40,540!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $699,558!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of June 30, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Prosper Junior Bakiny has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Netflix, and Roku. The Motley Fool has a disclosure policy. 2 Stocks to Buy With $5,000 and Hold for a Decade was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-06-2025
- Business
- Yahoo
The 5 Most Interesting Analyst Questions From Roku's Q1 Earnings Call
Roku's first quarter results for 2025 were met with a negative market reaction, as investors focused on the company's mixed performance versus Wall Street expectations. Management pointed to the ongoing shift from linear TV to streaming as a key driver, highlighting strong growth in total hours streamed and progress in diversifying revenue streams across advertising and subscriptions. CEO Anthony Wood explained that investments in programmatic advertising and deepening integrations with third-party demand-side platforms (DSPs) supported ad revenue growth, even as advertisers became more selective and sought higher returns on investment. The acquisition of Frndly, a streaming subscription bundle, was cited as a step toward expanding recurring revenue and strengthening the platform's competitive position. Is now the time to buy ROKU? Find out in our full research report (it's free). Revenue: $1.02 billion vs analyst estimates of $1.01 billion (15.8% year-on-year growth, 1.5% beat) Adjusted EBITDA: $56.02 million vs analyst estimates of $60.43 million (5.5% margin, 7.3% miss) Revenue Guidance for Q2 CY2025 is $1.07 billion at the midpoint, below analyst estimates of $1.09 billion EBITDA guidance for the full year is $350 million at the midpoint, above analyst estimates of $337.7 million Operating Margin: -5.7%, up from -8.2% in the same quarter last year Total Hours Streamed: 35.8 billion, up 5 billion year on year Market Capitalization: $12.27 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Cory Carpenter (JPMorgan) asked about Roku's confidence in reiterating full-year guidance given macro uncertainty. CEO Anthony Wood and CFO Dan Jedda cited platform diversification and secular streaming trends as supporting factors. Brent Navon (Bank of America) inquired about Roku's ability to buffer against further macro deterioration. Jedda responded that ongoing advertising and subscription initiatives should help offset potential headwinds, but acknowledged the company is not immune to major downturns. Vasily Karasyov (Cannonball Research) questioned the incrementality of programmatic revenue. President Charlie Collier explained that while some revenue comes from shifting direct buyers, new partnerships and self-service tools are bringing in incremental demand. Laura Martin (Needham) probed the rationale behind the Frndly acquisition and the company's use of first-party data. Wood and Collier detailed Frndly's growth potential and explained the focus on leveraging proprietary data to enhance advertising performance rather than selling it directly. Matt Thornton (FBN Securities) asked about the impact of tariffs on device margins and the inclusion of Frndly in guidance. Ozgen detailed the company's manufacturing agility and Jedda confirmed Frndly's contribution was assumed in guidance. Looking ahead, the StockStory team will be watching (1) the pace of ad revenue growth as programmatic buying becomes a larger share of the mix, (2) the integration and growth trajectory of Frndly and its impact on recurring revenue, and (3) the effectiveness of Home Screen enhancements in driving engagement and monetization. Execution against tariff mitigation strategies and continued growth in streaming households will also be important signposts. Roku currently trades at $86.08, up from $67.30 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Listly
17-06-2025
- Listly
ROKU TV AND ROKU TV CUSTOMER CARE NUMBER +1(844)259*6248
REPORT Listly by James Baker The ROKU TV is asmart television with ROKU's streaming platform built right in-no extra stick or box needed. its offered by brands like TLC,HisensePhilips and more. You get aclean , easy to use interface with rapid access to thousand of 'channels', including free ones,lve tv guide, and mobile control via ROKU simple Reddit explanations. A Roku TV is a line of tv by ROKU Inc. which come pre installed with the same software available on ROKU service. SO, need assistance calling from India or want help with chat navigation? call +1(844)259*6248
