From Nasdaq, Inc.: 2025-06-08 09:51:00

Roku (NASDAQ: ROKU) may seem like a risky investment with negative earnings and slowing sales growth, but a closer look reveals a strong long-term growth story. The company strategically incurs losses to drive user growth and maximize market reach. While sales growth has slowed from pandemic highs, holding onto half of that growth rate is still impressive. And despite a high valuation, other metrics suggest Roku is undervalued. The stock may have underperformed recently, but this presents a buying opportunity for investors looking for long-term returns.

Before investing in Roku, consider that the Motley Fool Stock Advisor team does not currently recommend it. However, their top stock picks have historically outperformed the market by a wide margin. While Roku may not be on their list now, past recommendations like Netflix and Nvidia have delivered significant returns. Joining the Stock Advisor program gives access to their latest recommendations and insights.



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