From Financial Modeling Prep: 2024-10-03 12:18:00

Roku (NASDAQ:ROKU) shares rose over 1% as Macquarie analysts raised the price target to $90, citing impressive growth with 84 million active accounts. The Roku Channel accounts for 1.7% of TV viewing time, closely trailing Tubi at 1.8%. Roku is focused on monetizing its user base with stable CPMs and targeting brand advertisers.

The Roku Channel is insulated from CPM pricing pressures affecting premium CTV services like Disney+ and Netflix. Roku aims to enhance appeal to brand advertisers and target specific audiences for performance-based advertising. The home screen reaches 120 million users daily, attracting upper-funnel brand advertisers from various sectors.

Roku collaborates with DSPs like The Trade Desk to broaden its demand pool and simplify access for smaller advertisers with the new Ads Manager tool. Subscription price increases across streaming services hosted by Roku are expected to support revenue growth. The company’s focus on ad revenue and user base monetization is driving growth.



Read more at Financial Modeling Prep:: Macquarie Lifts Roku Price Target to $90, Cites Im…