From Yahoo Finance: 2025-06-08 18:45:00

Roku is positioned to benefit from streaming entertainment and digital advertising growth, aiming for positive operating income in 2026. Despite being 84% below its peak, the stock’s valuation is low. Revenue growth has been consistent, with 86% coming from the platform segment. Roku has a clean balance sheet with no debt and a low price-to-sales ratio.

The competitive landscape includes tech giants like Alphabet, Amazon, and Apple, but Roku maintains a leading industry position. Investors considering a 20-year commitment should note Roku’s cheap valuation, growth potential, and strong market position. The Motley Fool advises against buying Roku stock, instead recommending 10 other promising stocks.

Roku’s historical net losses may change with controlled expenses, and it holds $2.3 billion in cash. Shares trade at a discounted price-to-sales ratio of 2.7. Investors must weigh the competitive risks against Roku’s industry position and growth potential. The Motley Fool’s board includes executives from Alphabet and Amazon, who recommend and have positions in Roku.

Read more: Down 84%, Should You Buy This Growth Stock in June and Hold for 20 Years?