Up 60% in 3 Months, Can Roku Stock Continue to Rally?
(NASDAQ: ROKU) stock has been on a tear of late. As economic conditions have been looking better, the streaming company has benefited from more excitement and bullishness around growth stocks. Shares of Roku aren't quite at their 52-week high, but they rallied 60% in just the past three months. Can this rally continue, or could Roku stock be running out of steam?
Roku will release its latest earnings numbers in February, and there are reasons to be optimistic the report will be a good one for the company. A big concern for Roku in previous quarters has been a lack of profitability, particularly its poor gross profit margin.
In the third quarter, the company's gross margin was just over 40%. And despite revenue rising 20% year over year to $912 million, gross profit only improved 3%. Lackluster gross margins aren't a new problem for the company.
Source Fool.com
Roku Stock
Currently there is a rather positive sentiment for Roku with 33 Buy predictions and 6 Sell predictions.
With a target price of 93 € there is a hugely positive potential of 52.48% for Roku compared to the current price of 60.99 €.
