(NASDAQ: ROKU) stock trades about 82% off its all-time high set in mid-2021. Its lower valuation coincided with the slowdown in the advertising market over the past two years, which is the primary way the company monetizes its viewers. But from a more short-term perspective, Roku's stock price is up sharply (52% over the past five days) after its Nov. 1 business update showed accelerating revenue growth.
Is the ad market finally turning around for Roku? Let's look at the key highlights from the quarter, and whether the stock is worth buying now.
The investment case for Roku is largely based on advertising growth potential. Investors expect that growing viewership should attract more advertisers over time, and that positions Roku for tremendous revenue gains. As a leading brand in streaming, the company is going after a big opportunity in connected TV advertising -- a market estimated to be worth $25 billion and expected to grow 10% per year through 2028, according to eMarketer.
Source Fool.com