1 Green Flag and 1 Red Flag for Roku Stock
Things aren't getting any better for streaming specialist (NASDAQ: ROKU). After starting the year on a bad note, some hoped the company's first-quarter results might be the start of a turnaround. Not so, says the market, as investors still weren't convinced by Roku's latest quarterly updates. On the one hand, there are some things to like about Roku's prospects, but the bears also have some valid arguments. Let's consider one reason Roku's stock might be a buy and one reason to stay away from the company.
One of Roku's biggest strengths is its ecosystem. The more viewers it can attract to its platform, the more attractive it becomes to advertisers and the more revenue it can generate. Thankfully, things are still moving in the right direction on that front for the streaming leader. In the first quarter, Roku's streaming accounts grew by 14% year over year to 81.6 million. Streaming hours jumped 23% year over year to 30.8 billion.
Roku streamed a staggering amount of media last year, more than 100 billion hours. If things keep up, it will easily surpass what it accomplished in 2023. With engagement rising in the first quarter, Roku's top and bottom lines also saw healthy growth. The company's revenue of $881.5 million was 19% higher than the year-ago period, while it reported a net loss per share of $0.35, much better than the loss per share of $1.38 recorded in the prior-year quarter.
Source Fool.com
Roku Stock
Our community is currently high on Roku with 28 Buy predictions and 7 Sell predictions.
As a result the target price of 93 € shows a very positive potential of 66.34% compared to the current price of 55.91 € for Roku.
