Roku Rises on Zacks Strong Buy and Amazon Partnership as Trading Volume Ranks 429th

Roku (ROKU) rose 1.79% on July 30, 2025, with a trading volume of $290 million, marking a 25.53% decline from the prior day’s volume. The stock ranked 429th in trading activity across the market. Recent developments suggest a potential turnaround in Roku’s financial trajectory, driven by narrowing losses and strategic partnerships.

The company’s second-quarter guidance indicates a net loss of $25 million, an improvement from the $34 million deficit in the same period last year, with revenue projected to reach $1.07 billion. Analysts highlight that Roku’s path to profitability could accelerate, as its full-year 2025 loss forecast has narrowed to $30 million, down from earlier estimates of $40 million. This suggests progress in curbing costs and boosting revenue, which could bolster investor confidence ahead of its earnings report.

User engagement remains a critical growth driver. Roku reported 35.8 billion streaming hours in Q2, a 17% year-over-year increase, underscoring its platform’s sustained appeal. While the company ceased reporting average revenue per user (ARPU) and user counts, the focus on streaming hours reflects its ability to monetize through advertising and service partnerships. Seasonal factors, such as summer weather keeping audiences at home, may further support engagement trends.

A partnership with Amazon, announced in June, could unlock new revenue streams. Amazon’s ad platform now allows advertisers to target Roku’s expanding user base, despite competition from Amazon’s Fire TV. While the collaboration’s financial impact will likely materialize in the second half of 2025, the deal positions Roku as a key player in connected TV advertising, potentially driving higher ARPU and attracting other partners.

Zacks Investment Research upgraded Roku to a #1 (Strong Buy) rating on July 30, citing positive earnings estimate revisions and strong market momentum. Analysts anticipate 79.8% earnings growth for fiscal 2025, with revenue expected to rise 10.8%. The stock’s recent 4.9% gain outperformed the S&P 500’s 3.4% rise over the past four weeks, aligning with the Zacks Rank’s historical outperformance against the benchmark.

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