Roku’s revenue is driven primarily by its platform segment, benefiting from advertising and subscriptions. Despite competition from tech giants, the growth of digital advertising is expected to boost Roku’s revenue. However, the company’s stock trades below its peak, presenting potential for investors. Roku has shifted focus from hardware to its platform segment, which boasts a strong gross margin. While facing competition, Roku’s agnostic streaming platform has allowed it to capture top market share in North America. The company’s revenue growth is fueled by cord-cutting trends and the rise of digital advertising. Investors should consider these factors before investing in Roku.

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