Roku (ROKU) Stock

Are you interested in discounted stocks? How does an 84% price cut sound to you?

The start of a new year offers fresh chances, and streaming service Roku (ROKU -0.73%) could really benefit from that. It finished the previous year with an 18% decline, while the S&P 500 rose by 26%—a disappointing performance for 2024.

Roku (ROKU) finished the most recent trading session at $74.34, which is a decrease of 0.73% compared to the previous day.

Roku (ROKU) has been getting a lot of interest from users on Zacks.com recently. Because of this, it's important to understand the factors that could affect the stock's future.

Roku (ROKU) could see an increase in value due to rising confidence in its earnings potential, as shown by its upgrade to a Zacks Rank #2 (Buy).

ROKU is still considered a good investment even after its recent price increase, thanks to new advertising opportunities and partnerships, especially with The Trade Desk. The introduction of Ads Manager and AI tools, along with collaborations with Shopify and Instacart, improves its advertising on connected TV, providing special shoppable ads and an easy checkout process. Although its forward EV/EBITDA valuations are high, ROKU's lack of debt, increasing free cash flow, and expected growth in revenue and profits highlight its strong potential for long-term growth.

ROKU has seen a 44% increase in the last six months, generating $1 billion in revenue and reaching 85.5 million households. As the leading streaming platform in the U.S., its solid growth strategies suggest a promising future in 2025.

I have many reasons to consider purchasing Roku (ROKU 2.75%) stock.

Roku (ROKU) has been getting a lot of interest from users on Zacks.com recently. As a result, it's important to understand the factors that could affect the stock's future.