Roku (ROKU) Stock Surges 46% in 2025 Amid Advertising Revenue Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 20 2026
0mins
Source: Fool
- Stock Recovery: Roku's stock surged 46% in 2025, significantly outperforming the S&P 500, although it remains down 78% from its all-time high in 2021, indicating cautious optimism about its future prospects.
- Revenue Growth: Roku's platform revenue grew by 17% in the first three quarters of 2025, highlighting the increasing attractiveness of its platform business, despite the device revenue facing negative gross margins.
- Cash Flow Improvement: Roku reported a trailing 12-month free cash flow of $443 million as of Q3 2025, the highest in years, as management maintained steady operating expenses, reflecting effective cost control amid rising revenues.
- Advertising Revenue Concerns: Despite Roku reaching 100 million households and surpassing broadcast TV viewing hours, advertising revenue growth has not kept pace with user growth, indicating potential pricing issues that could impact future profitability.
Get Free Real-Time Notifications for Any Stock
Monitor tickers like ROKU with instant alerts to capture every critical market movement.
Sign up for free to build your custom watchlist and receive professional-grade stock notifications.
Analyst Views on ROKU
Wall Street analysts forecast ROKU stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ROKU is 123.10 USD with a low forecast of 100.00 USD and a high forecast of 145.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
23 Analyst Rating
19 Buy
4 Hold
0 Sell
Strong Buy
Current: 100.840
Low
100.00
Averages
123.10
High
145.00
Current: 100.840
Low
100.00
Averages
123.10
High
145.00
About ROKU
Roku, Inc. operates a television (TV) streaming platform. The Company connects viewers to the streaming content they love, enables content publishers to build and monetize large audiences, and provides advertisers with capabilities to engage consumers. The Company’s segments include platform and devices. The platform segment is engaged in the sale of digital advertising (including direct and programmatic video advertising, media and entertainment promotional spending, and related services) and streaming services distribution (including subscription and transaction revenue shares, the sale of premium subscriptions, and the sale of branded app buttons on remote controls). The devices segment is engaged in the sale of streaming players, Roku-branded TVs, smart home products and services, audio products, and related accessories. The Company sells the majority of its devices in the United States through retailers and distributors as well as through the Company’s website.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Roku to Release Q4 2025 Financial Results on Feb. 12, 2026
- Earnings Release Schedule: Roku will announce its Q4 2025 financial results after market close on February 12, 2026, which is expected to significantly impact investor sentiment.
- Live Webcast Details: The company will host a live earnings call at 2 PM Pacific Time on the same day, allowing investors to listen in via the Roku investor relations website, enhancing transparency.
- Archived Financial Information: Following the earnings call, Roku will provide an archived version of the conference on its investor relations website, ensuring all investors have access to critical information.
- Company Overview: Roku, a pioneer in streaming TV, offers a range of products and services, including Roku TV and The Roku Channel, aimed at connecting users with their favorite content and facilitating advertiser engagement with consumers.
Continue Reading
Analysis of the Reasons Behind Netflix's Stock Decline
- Stock Volatility: Netflix shares surged approximately 37% in the first half of 2025 but have since plummeted nearly 27%, indicating increasing investor uncertainty about its future prospects.
- Macroeconomic Impact: While recent GDP growth suggests resilient consumer spending, Netflix, as a service business, remains vulnerable to inflation and declining consumer purchasing power, putting pressure on its stock price.
- Acquisition Uncertainty: The competition with Paramount SkyDance for Warner Bros.' film and television assets raises investor concerns about antitrust issues and financing methods, adding to market unpredictability.
- Business Model Strength: Despite challenges, Netflix's business model, characterized by continuous content refreshes and high customer retention rates, has sustained revenue growth and profitability, providing financial flexibility for future expansions in advertising and immersive entertainment.
Continue Reading