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Roku, Inc. (ROKU): Among the Best Streaming Service Stocks to Buy According to Analysts

Wesley ParkMonday, Feb 17, 2025 12:48 pm ET
5min read


Roku, Inc. (ROKU) has been making waves in the streaming service industry, and analysts are taking notice. With a strong performance in 2024 and an even more promising outlook for 2025, Roku is one of the best streaming service stocks to buy according to analysts. Let's dive into the reasons behind Roku's strong analyst ratings and price targets.

Roku's Impressive 2024 Performance

In 2024, Roku, Inc. reported revenue of $4.11 billion, an increase of 18.03% compared to the previous year. This growth was driven by robust subscriber growth and strong advertising sales. The company also reported a significant decrease in losses, with a 81.77% improvement compared to 2023. These impressive financial results have contributed to Roku's strong analyst ratings and price targets.

Analyst Ratings and Price Targets

According to 23 analysts, the average rating for ROKU stock is "Buy." The 12-month stock price forecast is $92.86, which is a decrease of -8.20% from the latest price. However, it is essential to note that the average target predicts a decrease of -6.27% from the current stock price of 99.07. This discrepancy highlights the importance of considering individual analyst price targets rather than relying solely on the average target.

Key Factors Driving Roku's Strong Analyst Ratings

Several key factors contribute to Roku's strong analyst ratings and price targets:

1. Revenue Growth: Roku's consistent revenue growth, driven by robust subscriber growth and strong advertising sales, has attracted analysts' attention. In 2024, Roku's revenue increased by 18.03% compared to the previous year.
2. Expansion of Ad Reach: Roku has been expanding its advertising reach, which has led analysts to raise their price targets. The company's ad business is expected to grow as it gains more market share in the connected TV advertising space.
3. Platform Revenue Milestone: Roku crossed the $1 billion threshold in platform revenue in Q4 2024, further solidifying its position in the streaming market. This achievement has contributed to the company's strong analyst ratings.
4. Profitability Outlook: Roku expects to be profitable in 2026, which has boosted investor confidence and contributed to the company's strong analyst ratings.
5. Increased Streaming Households: Roku added more than 4 million new streaming households in Q4 2024, reaching just shy of 90 million streaming households. This growth in user base has positively impacted the company's stock price and analyst ratings.

Roku's Stock Price Prediction

Roku's stock price prediction for the next few months and years is positive, with analysts forecasting an average target of $92.86. However, it is essential to consider individual analyst price targets, as the average target may not accurately reflect the stock's potential. Some analysts have raised their price targets for Roku stock, citing the company's strong platform growth and expanding ad reach.

Conclusion

Roku, Inc. (ROKU) is one of the best streaming service stocks to buy according to analysts, thanks to its impressive 2024 performance, strong analyst ratings, and positive stock price predictions. The company's consistent revenue growth, expansion of ad reach, platform revenue milestone, profitability outlook, and increased streaming households have all contributed to Roku's strong analyst ratings and price targets. As Roku continues to grow and expand its market share, investors can expect the company to remain a top pick among streaming service stocks.


ROKU Total Revenue (FY), Basic EPS (FY)...
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02/17

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meowmeowmrcow
02/18
@clefjames Sure
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Gix-99
02/17
$ROKU Imagine if ROKU suddenly produced a blockbuster show. People don't often think of them as a source for original content. It could be a huge surprise bonus.
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jy725
02/17
@Gix-99 What if ROKU goes long on content?
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Anthony
02/17

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SojournerHope22
02/17
@Anthony 👍
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Miguel_Legacy
02/17
ROKU's ad business is fire. Expected to sizzle in connected TV space. I'm bullish on their platform growth.
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Loud_Ad_6880
02/17
@Miguel_Legacy Think ROKU can hit ATH again?
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Dry_Entertainer_6727
02/17
@Miguel_Legacy Totally agree, ROKU's ad biz is lit.
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SmallVegetable4365
02/17
Profitability in 2026? That's a bold outlook. Betting on ROKU's future is like buying $TSLA at $20.
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Paper_Coin
02/17
@SmallVegetable4365 Think ROKU can hit $100?
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k_ristovski
02/17
Strong ad reach expansion, bullish on $ROKU.
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curbyourapprehension
02/17
ROKU's ad reach expansion is 🔥. Connected TV ad space is the future. Holding $ROKU for long-term gains in this space.
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JRshoe1997
02/17
Hold $ROKU long-term, streaming growth is solid.
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discobr0
02/17
ROKU's revenue growth is solid, but can they keep up with giants like $AAPL and their growing TV+ service?
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CommonEar474
02/17
Connected TV ad space is goldmine, IMO.
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GrapeJuicex
02/17
$ROKU hitting $92.86? Not bad. I'm holding long-term. Streaming wars will sort the winners.
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user74729582
02/17
$ROKU crossing the $1B platform revenue threshold is a big deal. Analysts who missed this might regret it.
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Lunaerus
02/17
Individual analyst targets vary widely. Do your own research, don't just follow the crowd. 🚀
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PunchTornado
02/17
90 million streaming households? 🚀 That's a massive reach. Wonder how they'll keep growing with competition heating up.
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Shinoskay9
02/17
@PunchTornado True, competition's tough. But ROKU's got a solid platform. They might keep growing by expanding their ad reach and partnerships.
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Zhukov-74
02/17
90M streaming households? That's a massive user base. Wondering how they'll maintain growth in this competitive market.
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