ROKU Stock Recent News

Roku Inc. NASDAQ: ROKU is a streaming media technology platform provider and device manufacturer. It's a benefactor in the fastest-growing digital media segment, connected TV (CTV).

Despite the recent uncertainty and narrative dragging the S&P 500 sideways, such as the historically slow September and the aggressive pivot by the Federal Reserve (the Fed) by cutting up to 50 basis points (bps) instead of the expected 25bps, which might not be as bullish as the market had thought it would be. Investors can tell this is so by the market's reaction.

Roku (ROKU) closed at $77.45 in the latest trading session, marking a +0.12% move from the prior day.

Roku Inc. ROKU is gearing up for a platform monetization sprint, and investors are starting to tune in. After a strong showing at the JPMorgan U.S. All Stars Conference in London, Roku's management has made one thing crystal clear: it's all about accelerating platform revenue growth.

SAN JOSE, Calif.--(BUSINESS WIRE)--Today, Roku (NASDAQ: ROKU), the #1 TV streaming platform in the U.S.*, announced the launch of Roku Ads Manager, a direct self-service solution designed for CTV performance. With TV ad spending shifting further away from linear and digital-native marketers eager to diversify beyond search and social, Roku Ads Manager is custom-built to help growth marketers succeed. “In order to meet growth marketers' needs across all direct-to-consumer brands, we built a seam.

Roku's valuation is at a historically low forward price/sales ratio of 2.71x, suggesting potential for a stock price rebound. CEO Anthony Wood highlighted growth in Streaming Households, Streaming Hours, and Platform Revenue in Q2 2024. Despite high costs, Roku's improving net margins and fiscal discipline signal potential for positive net income and cash flow in upcoming quarters.

Roku stock gained nearly 6% on Thursday and has climbed 11% over the past week. What's driving this upward momentum?

Roku's ad monetization strategy, partnerships with DSPs, and user engagement improvements are driving growth, with platform revenue up 11% and user metrics at record highs. Device sales surged ~39% in Q2, with potential for further growth during the holiday season, boosting both ad revenue and overall prospects. Valuation remains depressed despite strong performance, presenting a buy opportunity; Roku is expected to achieve 13-15% CAGR growth through CY25.

Roku (ROKU) concluded the recent trading session at $74.69, signifying a +0.76% move from its prior day's close.

Roku posted strong results last month and raised its guidance, but the shares still hit a fresh low four trading days later. At least three analysts have upgraded the stock since it bottomed out, echoing themes of improving monetization and financial results.