Stock Price & Analysis

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

Recent Performance and Key Metrics

• Stock has shown strong momentum with a 14% surge recently
• Revenue grew 22% to $1.2 billion in Q4 2024
• Platform business revenue exceeded $1 billion, up 25% year-over-year
• Streaming households reached 90 million in early January 2025

Growth Catalysts

• Leading TV operating system in US, Canada, and Mexico
• Streaming hours increased 18% year-over-year to 34 billion in Q4
• ARPU improved to $41.49, showing 4% growth after previous decline
• Positive free cash flow of $203 million in 2024

Current Market Position

• Trading at approximately 3x 2025 consensus revenue
• Operating expenses rose only 2% year-over-year
• Operating profit increased 17% to $512.6 million
• Analyst sentiment improving with 10 "buy" ratings, up from 7 last summer

Recommendation: SELL

• Despite improving metrics, current market price appears overextended after recent surge
• Faces increasing competition from major tech players like Netflix, Meta, and Alphabet
• Stock volatility remains high with significant swings in annual returns
• Current technical indicators suggest overbought conditions

Based on the provided data and analysis, here is the price prediction for ROKU stock in 2025:

ROKU's stock price is expected to reach $105.82 by early 2025, representing a 26.76% upside potential from current levels, supported by strong platform growth and improving advertising business. The company has surpassed 90 million active accounts and achieved an 18% increase in viewing hours, demonstrating robust user engagement.

The key drivers supporting this price target include:

• Strong platform monetization with successful MLB Sunday Leadoff package launching in May 2025
• Enhanced advertising measurement capabilities through partnership with Incrmntal
• Continued international expansion and market share gains in key regions

Wall Street maintains a "Moderate Buy" consensus rating based on 12 Buys, 8 Holds, and 2 Sells.

The S1 support level for ROKU Stock is $78.35 ,The R1 resistant level for ROKU Stock is $91.42.

As of the end of day on 2025-03-06, the price of ROKU Stock was $79.66.

The target price for ROKU Stock according to analyst rating is 105.82, with the highest price target at 130.00 and the lowest at 58.00. Analysts have a Moderate Buy rating on ROKU Stock overall.

The market cap of ROKU is $11.6B.

Based on the provided data, I'll analyze whether ROKU is overvalued in 5 concise sentences:

ROKU appears fairly valued considering its strong market position in streaming with 90 million active accounts and 18% year-over-year growth in viewing hours. Despite recent net losses, the company has shown significant improvement with positive adjusted EBITDA and free cash flow, while management expects positive operating income in 2026. The stock's current valuation at around 3x 2025 consensus revenue is well below its historical double-digit multiples from 2021, suggesting room for upside. Roku's platform business revenue crossed $1 billion in Q4 2024, growing 25% year-over-year, demonstrating strong monetization potential. The company's international expansion and growing advertising capabilities, coupled with its dominant position as the #1 TV operating system in the US, Canada, and Mexico, support its current valuation levels.

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 provided data and analysis requirements, here's a projection for ROKU's stock price in 2030:

ROKU stock is projected to reach $180-200 by 2030, driven by the company's expanding streaming platform reach which has already surpassed 90 million households and aims for 100 million by 2026. The company's strengthening ad business and international expansion, coupled with expectations of achieving positive operating margins by 2026, support this growth trajectory.

The projection is based on several key factors from recent developments:

1. Platform Growth: Roku reported strong Q4 2024 performance with platform revenue rising 25% year-over-year, demonstrating sustained growth in its core business.

2. Market Position: The company maintains its position as the #1 TV operating system in the U.S., Canada, and Mexico, with expanding partnerships across Latin America and the U.K..

3. Financial Trajectory: Management expects to achieve positive operating margins by 2026 and projects free cash flow to exceed $350 million in 2025, indicating improving financial health.

ROKU has a total of 3150 employees.