Roku, Inc. Class A Stock News

Some investors think Roku (ROKU 6.07%) stock is expensive, and it's easy to see why. The media-streaming technologist's shares trade at lofty valuation ratios like 95 times free cash flows and 120 times forward earnings estimates.

ROKU has reignited growth and aims for GAAP profitability by 2026, supported by a strong net cash balance and low valuation. The company delivered impressive Q4 results with 17% YoY gross profit growth, and management guides for continued growth in 2025. Despite competitive risks, ROKU's valuation looks cheap, with potential 50% upside as it benefits from smart TV and digital advertising growth.

Roku (ROKU 8.11%) stock is surging Wednesday. The streaming specialist's share price was up 9.2% as of 3:15 p.m.

The 4% drop in the Nasdaq Composite Index (^IXIC 0.19%) on March 10 served as a wake-up call to investors. While that was not a record drop by any measure, it was the worst one-day decline since the fall of 2022, meaning many newer investors had never experienced a comparable decline.

The Trade Desk (TTD -0.11%) and Roku (ROKU -3.68%) are increasingly competitive in the connected TV market.

Roku, Inc. (NASDAQ:ROKU ) Morgan Stanley Technology, Media & Telecom Conference Call March 5, 2025 3:20 PM ET Company Participants Anthony Wood - Founder, Chairman, President & CEO Conference Call Participants Unidentified Analyst [Audio Gap] From Roku, Anthony. Great to have you here.

Streaming company Roku (ROKU 2.48%) has been a hot buy of late, rallying after posting some strong quarterly results. The business is growing and its losses have been shrinking.

Earnings season always creates some winners and some losers. Streaming specialist Roku (ROKU 2.48%) was firmly in the former camp this time around.