Is It Time to Give Up on Roku Stock?

From Yahoo Finance: 2025-05-10 14:20:00

Roku’s stock is down nearly 90% from its all-time high in 2021, but revenue and engagement are increasing. Despite struggles to return to profitability, Roku’s business model shows potential with its advertising revenue. The company remains a leader in the streaming market, with approximately 40% of North American streaming households using Roku devices.

While Roku’s growth has not translated into profitability, the company’s stock has seen a significant decline in its price-to-sales ratio. Investors may want to consider holding or adding shares at current levels, as Roku could potentially return to profitability next year. The company’s positioning in the streaming industry suggests the stock could deliver long-term returns.

The Motley Fool Stock Advisor team did not include Roku in their list of top 10 stocks for investors. However, past recommendations like Netflix and Nvidia have produced significant returns. Stock Advisor has outperformed the S&P 500 with a total average return of 907%. Don’t miss out on their latest recommendations.

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