From Nasdaq: 2024-09-17 00:13:00

Roku stock surged nearly 6%, up 11% in a week due to analyst upgrade by Wolfe Research, expecting stronger connected TV ad sales. US inflation eased to 2.5% YoY in August, the lowest in 3 years, potentially leading to a Fed rate cut. Roku’s operational improvements include Q2 revenue up 14% YoY to $968 million and narrowing operating losses to $71 million, driving a 39% jump in device sales and growth in streaming hours and platform accounts.

Despite recent gains, Roku stock is down significantly from 2021 levels, showing high volatility compared to the S&P 500. The Trefis High Quality Portfolio with 30 stocks has outperformed the S&P each year. Roku’s stock trades at a low multiple of 2.5x estimated 2024 revenue but faces challenges from competition in the streaming market and declining subscription commissions.

Roku’s performance in Sep 2024 shows 9% MTD returns and -19% YTD returns, contrasting with S&P 500’s -3% MTD and 15% YTD returns. Trefis Reinforced Value Portfolio also shows -3% MTD returns, underlining Roku’s volatility. Despite potential for growth, Roku stock is valued at $67, slightly below the current market price. Investors should consider Trefis Market-Beating Portfolios for better returns.

Overall, Roku stock has seen recent gains driven by factors like an analyst upgrade, easing inflation, and operational improvements. However, the stock remains volatile compared to the S&P 500, facing challenges from competition in the streaming market. Trefis’ analysis values Roku stock at $67, below the current price, highlighting potential risks and opportunities for investors.



Read more at Nasdaq: Why Did Roku Stock Soar 6%?