ROKU Should I Buy
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Roku Inc (ROKU) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company has demonstrated strong financial performance in Q4 2025, with a significant turnaround to profitability, positive analyst sentiment, and a favorable growth outlook. Despite some technical indicators showing a neutral trend, the strong pre-market price movement and positive catalysts make it a compelling investment opportunity.
The MACD is negatively expanding (-1.349), and the RSI_6 is neutral at 22.284. Moving averages are converging, indicating no clear trend. The stock is trading near its key resistance level (R1: 97.61) in pre-market, suggesting strong upward momentum. Pre-market price is up 16.38%, reflecting bullish sentiment.
Strong Q4 2025 financial performance with a net profit of $80.5M and revenue growth of 16.14% YoY.
Positive analyst sentiment with multiple upgrades and price target increases, including a high target of $
Favorable guidance for 2026, with expectations of sustained platform revenue growth and profitability.
Strong pre-market price movement (+16.38%), indicating investor confidence.
Hedge funds are selling, with a 494.34% increase in selling activity over the last quarter.
Technical indicators like MACD and RSI do not yet confirm a strong bullish trend.
Gross margin dropped to 40.65%, down 4.76% YoY.
In Q4 2025, Roku reported revenue of $1.39 billion, up 16.14% YoY, and a net profit of $80.5 million, marking a significant turnaround after three years of losses. However, gross margin declined to 40.65% (-4.76% YoY), and EPS dropped to $0.53 (-320.83% YoY).
Analysts are overwhelmingly positive on Roku, with multiple upgrades and price target increases. KeyBanc raised its target to $130, Rosenblatt upgraded to Buy with a $118 target, and Wedbush raised its target to $140, citing accelerating monetization and improving profitability. JPMorgan reiterated Roku as a top pick with a $125 target, emphasizing strong platform revenue growth.
