3 Things About Roku Stock That Smart Investors Know
Wall Street is excited again about the potential for 's (NASDAQ: ROKU) business to grow over the next few years. The streaming video giant's stock has trounced the market so far in 2023, even beating Netflix's (NASDAQ: NFLX) rally through late June. Investors are looking forward to stabilizing sales trends ahead, and some potentially strong earnings as profit margins rebound.
There are some factors about Roku's business that make it riskier than Netflix, though, despite its bright long-term growth outlook. With that in mind, let's take a closer look at Roku as a potential long-term investment.
Netflix's move into the advertising market has helped lift investors' spirits, but in Roku's case the company may be too reliant on this volatile industry. The core U.S. ad market shrank at a 7% rate in Q1, for example, which helped push Roku's growth rate down to just 1%. That nearly flat result came despite strong engagement trends and record watch time.
Source Fool.com
Roku Stock
Our community is currently high on Roku with 33 Buy predictions and 6 Sell predictions.
As a result the target price of 93 € shows a very positive potential of 57.47% compared to the current price of 59.06 € for Roku.
