Roku stock surges 10% due to revenue growth, shrinking losses, and strong business outlook

From Nasdaq: 2024-08-26 00:36:33

Roku stock (NASDAQ:ROKU) has been on the rise, gaining about 10% in the last five trading days and 14% since Q2 2024 earnings. Key metrics show revenue growth of 14%, operating losses shrinking to $71 million, and strong streaming hours and account growth for the platform business.

Despite a recent decline, Roku stock remains a compelling investment opportunity. The stock has seen fluctuations over the past few years, with strong growth in 2023 but underperformance in 2021 and 2022 compared to the S&P 500. Current market price of $63 per share offers a positive risk-to-reward trade-off, with revenue multiples lower than previous peaks and a strong outlook for growth in ad revenue and cost management.

Cumulative returns for Roku stock stand at 21% for 2024, a significant improvement from negative returns in the previous year. Comparatively, the S&P 500 index has shown 18% returns for 2024. Trefis Reinforced Value Portfolio has also delivered consistent returns, reaffirming the potential of Roku stock as an investment choice with a positive outlook.



Read more at Nasdaq: What Drove Roku Stock Up 10% Last Week