Roku price target cut to $100 from $125 at Wedbush

Roku price target cut to $100 from $125 at Wedbush

Roku (NASDAQ: ROKU) is set to report its Q1 2025 earnings on May 1, with analysts projecting a 14% year-over-year revenue growth to $1.01 billion, and a loss of -$0.25 per share [1]. The company reported a total of 90 million subscribers in early January, reflecting a 12.5% year-over-year growth. This growth is likely to boost the platform business and drive advertising sales, as streaming hours increased by 18% year-over-year in Q4 to 34 billion.

However, market uncertainty has led to a downward revision in Roku's stock price target. Wedbush Securities recently cut its price target for Roku from $125 to $100. The firm cited broader market uncertainty and economic pressures, including tariff-related challenges, as the primary reasons for the adjustment [2].

JPMorgan has also revised its price target for Roku, lowering it from $115 to $75, while maintaining an Overweight rating. The firm cited similar economic pressures and scaled back revenue projections by up to 5% across small to mid-cap internet and video game sectors [2].

Investors should closely monitor Roku's earnings report and the broader market conditions to gauge the potential impact on the stock price. Historically, Roku has shown a positive one-day post-earnings return about 45% of the time, with a median return of 12% for positive days [1]. However, the correlation between short-term and medium-term returns post-earnings varies, and investors should consider this when making trading decisions.

References:
[1] https://www.nasdaq.com/articles/how-will-roku-stock-react-its-upcoming-earnings
[2] https://www.gurufocus.com/news/2793003/jpmorgan-adjusts-roku-roku-price-target-amid-market-uncertainty-roku-stock-news