Stock Price & Analysis

Based on the current market data and recent news analysis, here's a concise assessment of ROKU:

Technical Analysis

• Currently trading at $75.89, showing a modest gain of +0.97% in the last regular trading session
• RSI at 46.99 indicates neutral momentum, neither overbought nor oversold
• MACD at -0.35 suggests slight bearish momentum in the near term
• Price is currently below its 20-day moving average of $77.63, indicating short-term weakness

Recent Developments

• Roku has been identified as a potential high-growth stock despite being down significantly from its peak
• The company maintains a dominant market share in streaming platform software in North America
• Recent partnership with The Trade Desk to simplify ad-buying process shows promising business development

Growth Catalysts

• Strong position in the growing streaming market with leading market share in US, Canada, and Mexico
• Improving financial metrics with healthy cash position ($2.1 billion in cash reserves with zero long-term debt)
• Digital advertising market recovery could provide significant upside potential

Sell Signal Indicators

• Current price-to-sales ratio of 2.8x is near historical lows
• Technical indicators showing short-term weakness
• Competitive pressure from tech giants like Amazon, Apple, and Google remains a concern

Based on the analysis, ROKU appears to be in a consolidation phase with near-term headwinds but potential long-term upside. The stock is showing sell signals in the immediate term due to technical weakness and ongoing market uncertainty.

Based on the provided data and market analysis, here is a concise 3-sentence price prediction for ROKU stock in 2025:

ROKU stock is projected to reach $90-100 by mid-2025, driven by improving ad spending environment and international expansion momentum, with analysts noting strong user growth reaching 89.8 million streaming households as of early 2025. The company's dominant position in streaming platforms across North America and its strategic focus on profitability improvements through cost reductions could drive further upside, though current trading at $75.89 suggests room for growth. However, investors should monitor potential headwinds from increased competition in the ad-supported streaming market and the company's ability to successfully execute its international growth strategy while maintaining margins [1,2].

The S1 support level for ROKU Stock is $74.97 ,The R1 resistant level for ROKU Stock is $83.11.

As of the end of day on 2025-01-24, the price of ROKU Stock was $81.29.

The target price for ROKU Stock according to analyst rating is 80.39, with the highest price target at 100.00 and the lowest at 55.00. Analysts have a Moderate Buy rating on ROKU Stock overall.

The market cap of ROKU is $11.8B.

Based on the provided data and current market conditions, ROKU appears to be fairly valued at its current price of $75.89. Here's why:

Valuation Analysis: The stock trades at 2.76x trailing sales (Q3 2024), which is significantly below its historical average multiple of around 8-9x.

Growth & Profitability: Operating losses have dramatically improved from -$350M in Q3 2023 to just -$36M in Q3 2024, showing strong cost discipline. The company has $2.1B cash with zero debt, providing solid financial flexibility.

Market Position: Roku maintains dominant market share of 37% in North America's connected TV market, though this represents a decline from previous periods. The company reached 89.8 million streaming households globally by end of December 2024.

Analyst Consensus: Recent analyst actions show mixed but generally positive sentiment:

• Needham (Strong Buy, $100 PT) names Roku as Top Media Pick for 2025
• Wedbush (Buy, $100 PT) expects >$200M annual EBITDA in 2024
• Morgan Stanley (Sell, $65 PT) warns of rising competition risks

Technical Setup: The stock is trading near its 50-day moving average, suggesting neutral short-term momentum.

The current valuation appears reasonable given Roku's market leadership, improving profitability trajectory, and strong balance sheet, though competitive pressures remain a key risk to monitor.

Roku, Inc. operates a television (TV) streaming platform. The Company connects viewers to the streaming content they love, enable 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 includes licensing arrangements with service operators and TV brands in addition to sales of streaming players, audio products, smart home products and services. Roku TV models are available in the United States and in select countries through licensing arrangements with TV OEM brands.

Based on the comprehensive analysis of available data and market research, here is the price prediction for ROKU stock by 2030:

ROKU stock is projected to reach $150-180 by 2030, driven by the company's dominant position in the streaming market and improving profitability metrics. The company's strong user growth trajectory, reaching 89.8 million streaming households by end of 2024 and controlling about 50% of US broadband households, provides a solid foundation for long-term growth. The potential acquisition scenario in 2025, as highlighted by analysts, could accelerate this price target achievement.

The streaming platform's international expansion and recovery in digital advertising spending are expected to be key catalysts for this price appreciation. With current price-to-sales ratio at historically low levels of 2.7x compared to historical averages above 4x, there is significant room for multiple expansion as profitability improves.

ROKU has a total of 3150 employees.