Roku stock down 84% from pandemic peak, stagnant movement but potential for rebound

From Nasdaq: 2025-01-01 09:43:00

Shares of streaming-television technology company Roku (NASDAQ: ROKU) are currently trading at an 84% discount from their pandemic peak in 2021. Despite stagnant movement, investors are hesitant to jump in without clear signs of a rebound. However, this could be a prime opportunity for those willing to take the risk.

Roku’s core business is in advertising and serving as a middleman for streaming services like Disney+ and Netflix. It controls a significant portion of the U.S. connected-television advertising market and actively used media-playing devices. Revenue is still growing, with losses shrinking, making it an attractive prospect for investors.

The surge in Roku’s stock during the pandemic has since led to a correction, with the stock barely moving since then. However, the company’s financial viability shows promise for future profitability, with analysts projecting positive full-year profits in 2026. Despite this, investors and analysts remain cautious, offering a potential opportunity for those willing to take the risk.

While Roku’s stock may not be a guaranteed winner, its above-average risk comes with substantial upside potential. The market’s disconnect with the company’s ongoing growth could present a buying opportunity before a potential surge in stock price. Investors should consider the potential rewards against the risks before making a decision on Roku stock.



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