From Nasdaq.:

Roku (NASDAQ: ROKU) is expected to report Q4 2023 results, with an anticipated revenue of $970 million, slightly ahead of consensus estimates and an expected net loss of $0.53 per share. Despite a decrease in average revenue per subscriber, favorable trends in the video advertising market and a growing user base bode well for Roku.

Cost management efforts and layoffs are expected to help Roku improve profitability as the company aims to control its operating expenses. Managing costs will be key to driving profitability in the future.

ROKU stock has declined by 75% over the last three years, underperforming the S&P 500. The company has been inconsistent in its returns, with sharp declines and significant surges in performance in recent years.

The shift of ad dollars from linear TV to digital video formats is expected to benefit Roku. With the stock trading at about 3.3x forward revenue, below peak levels in 2021, we value Roku stock at about $97, indicating potential upside.

Invest with Trefis’ Market-Beating Portfolios for returns since 2016. The views expressed are of the author and not necessarily those of Nasdaq, Inc.



Read more: Roku Stock Gained 56% Over The Last Three Months, Will It Rise Further Following Q4 Results?