Stock Price & Analysis

Analysis and Insights

Recent Performance and Catalysts:

Roku's stock has shown strong performance, rising 15.51% last week following the launch of the Truth+ streaming app, making it one of the top large-cap gainers. This positive momentum is supported by its expanding content offerings and improving monetization strategies.

Valuation and Analyst Sentiment:

The stock is trading at $78.44, slightly above the median analyst price target of $76.00, indicating potential overvaluation. Analysts have a mixed outlook, with 7 buy ratings and 2 sell ratings, but recent upgrades suggest improving sentiment.

Insider and Institutional Activity:

There has been significant insider selling, including the CEO selling 20,400 shares, alongside 45 sales and only 1 purchase in six months. Institutionally, while 243 firms increased holdings, 299 decreased theirs, signaling mixed confidence.

Technical Analysis:

The stock's RSI is 51.52, indicating a neutral position. The MACD is slightly negative, suggesting bearish momentum. It's trading above its 20-day and 50-day moving averages but below the 200-day moving average, showing mixed technical signals.

Conclusion:

Given the recent rally and mixed signals, it may be prudent to sell or hold off on buying Roku stock. The insider selling and institutional activity suggest potential caution, and the stock might be due for a correction.

Roku stock is predicted to reach $85 by the end of 2025, driven by strong platform revenue growth and increasing analyst optimism. Recent Q4 results showed a 22% year-over-year revenue increase, with platform revenue crossing $1 billion, and streaming hours rising 18% to 34 billion. Analysts have raised price targets, with a median of $76 and some as high as $125. The stock surged 15.51% after launching a new streaming app, trading at $78.29.

The S1 support level for ROKU Stock is $69.43 ,The R1 resistant level for ROKU Stock is $80.77.

As of the end of day on 2025-04-02, the price of ROKU Stock was $69.9.

The target price for ROKU Stock according to analyst rating is 104.77, with the highest price target at 130.00 and the lowest at 70.00. Analysts have a Moderate Buy rating on ROKU Stock overall.

The market cap of ROKU is $10.3B.

Roku's valuation appears stretched based on high EV/EBITDA (3.99-4.41) and PS ratios (2.56-2.76), suggesting overvaluation relative to its financial performance. The stock trades near the high end of analyst price targets ($70-$130), raising concerns about upside potential. Recent 15.51% gains last week may indicate short-term top formation. While Roku's platform revenue and active accounts show growth, its net loss status and high expectations for future profitability add risk. Investors should exercise caution, as current prices may not fully align with fundamentals.

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.

Price Prediction for Roku (ROKU) Stock by 2030

Roku's stock is expected to reach $120-$150 by 2030, driven by its strong position in the streaming market, increasing ARPU, and expanding advertising revenue. Analysts have raised price targets, with some as high as $130, reflecting confidence in Roku's growth potential.

ROKU has a total of 3150 employees.