Roku, Inc. (NASDAQ:ROKU) is a prominent player in the streaming industry, providing devices and content that allow users to access a wide range of streaming services. Competing with giants like Netflix, Roku has carved out a significant niche, ranking third in the movies industry group. The company's stock performance has been noteworthy, with a strong relative strength line reaching a 52-week high.
On February 14, 2025, JMP Securities maintained its "Market Outperform" rating for Roku, with the stock priced at $99. This rating suggests confidence in Roku's future performance, encouraging investors to hold their positions. This decision aligns with Roku's recent financial achievements, as highlighted by its fourth-quarter results for 2024.
Roku's fourth-quarter results for 2024 exceeded expectations, with a narrower-than-expected loss and a 22% increase in revenue to $1.2 billion. The company's platform revenue surpassed $1 billion for the first time, driven by growth in streaming households and hours on The Roku Channel. This positive performance contributed to a significant stock surge, reaching a new high.
The company's operating loss narrowed to $39.1 million, a substantial improvement from the $104.2 million loss in the same period in 2023. Analysts had anticipated a loss of 41 cents per share, but Roku reported a loss of only 24 cents per share. This better-than-expected outcome has bolstered investor confidence, as highlighted by JPMorgan's decision to maintain its outperform rating and raise its price target from $92 to $115.
Roku's stock rose approximately 14% in early trading following the earnings announcement, reflecting renewed investor interest. The company projects first-quarter revenue of $1 billion and full-year 2025 revenue of $4.61 billion, aligning with estimates. With over 90 million streaming households, Roku's growth trajectory remains strong, despite a 4% decline in shares over the past year.
