From Nasdaq: 2025-06-17 12:11:00

Roku partners with Amazon Ads to revolutionize CTV advertising, offering access to 80 million U.S. households. Early results show increased unique viewers and reduced ad repetition. Shares surged 10.4% post-announcement, outperforming industry growth. Roku’s ad strategy gains momentum, with platform revenues growing 17% YoY. Challenges persist in the Devices segment, impacting profitability. Investors should hold Roku stock, given its strong long-term prospects and strategic partnerships. Roku currently holds a Zacks Rank #3 (Hold).

Roku’s earnings estimate for 2025 shows a loss of 17 cents per share, with total revenues expected to grow by 10.54%. The stock has beaten earnings estimates for the past four quarters. Despite competition from Netflix and Paramount Global, Roku’s ad ambitions remain strong. However, the Devices segment faces challenges, impacting overall performance. Roku’s current valuation suggests high growth expectations, making it less favorable for value investors.

Experts recommend holding Roku stock for now, citing its expanding revenues and partnerships. While long-term prospects are solid, challenges in the Devices segment and high valuation warrant caution. Investors should monitor execution and margin improvement before making decisions. The Zacks #3 (Hold) ranking suggests waiting for a more favorable entry point. For the next 30 days, consider the 7 best stocks handpicked by experts for potential price pops.



Read more at Nasdaq: Roku Partners With Amazon Ads: Should You Buy, Sell or Hold the Stock?