Fox’s $22 billion plan to buy Roku has hit a new hurdle.
The Justice Department sent Fox and Roku what’s known as a “second request” on Tuesday, asking the companies to turn over more data and documents as it takes a closer look at the deal. That’s a fairly standard step in a major antitrust review, but it also means the DOJ has more questions than it could answer from the companies’ initial filings.
Semafor was first to report the investigation. We reached out to Fox for comment.
While a second request doesn’t mean the DOJ is preparing to block the deal, it does signal that regulators want a much closer look at how it could affect competition and consumers before deciding whether to clear it.
There’s plenty for them to examine as it’s believed to be more than just a typical media acquisition. Fox owns a huge collection of news, sports and entertainment content, as well as Tubi, its free, ad-supported streaming service. Roku, meanwhile, operates one of the biggest platforms sitting between viewers and that content. Its operating system is built into millions of TVs and streaming devices, giving the company significant influence over how consumers discover and watch streaming services.
That raises obvious questions for Roku’s competitors, such as whether a Fox-owned Roku would give Fox’s services more prominent placement, if Fox would use Roku’s data to strengthen its advertising business, and if rival streaming services will be pushed lower on the home screen or otherwise receive less favorable treatment.
Fox CEO Lachlan Murdoch has tried to reassure competitors, saying he expects the two businesses to operate separately.
The investigation also comes as the DOJ has faced criticism over how it handles major mergers, including questions about political influence. For instance, Paramount’s acquisition of Warner Bros. Discovery sparked criticism because CEO David Ellison’s father, billionaire Oracle co-founder Larry Ellison, has close ties to President Trump. Critics argued that the deal’s approval has raised questions about political favoritism.
How the DOJ handles the Fox-Roku deal could be an important test of how closely it reviews politically sensitive mergers. Taking a closer look at Fox and Roku could help show that the DOJ isn’t giving politically connected companies a free pass. That’s especially notable given the Murdochs’ ties to President Trump and the DOJ’s scrutiny over other media deals involving Trump allies.
The deal is expected to close sometime in the first half of 2027.
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Lauren covers media, streaming, apps and platforms at TechCrunch.
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The U.S. Department of Justice is widening its antitrust inquiry into Fox's (FOXA.O) $22 billion deal for streaming platform Roku (ROKU.O), Semafor reported on Tuesday, citing people familiar with the matter.
The DOJ's move comes just months after Fox unveiled the $160 per share deal, which would combine its broadcast and sports operations with Roku's streaming reach, making the combined company the third-largest player in TV viewing, behind YouTube and Disney and ahead of Netflix.
Roku shares fell about 2% in extended trading after the report.
The DOJ plans to seek more information from the companies through what is known as a "second request", involving another round of data and document sharing, Semafor added.
Reuters could not immediately verify the report. The DOJ, Fox and Roku did not immediately respond to Reuters requests for comment outside business hours.
Fox said in June it was buying Roku in a cash-and-stock deal, betting the platform would strengthen its advertising business and expand its reach for sports and news content.
The deal would give Fox access to the more than 100 million households using Roku's platform, helping the cable TV-reliant company build a larger digital audience and reduce its reliance on traditional distribution.
Under the agreement, Roku investors would receive $96 in cash and about 0.97 Fox Class A shares for each share held, valuing the offer at $160 per share.
Fox CEO Lachlan Murdoch had earlier downplayed any potential conflict.
Greenland Capital Management LP trimmed its holdings in Roku, Inc. (NASDAQ:ROKU – Free Report) by 34.8% in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 10,000 shares of the company’s stock after selling 5,332 shares during the quarter. Greenland Capital Management LP’s holdings in Roku were worth $1,381,000 as of its most recent SEC filing.
A number of other institutional investors have also recently made changes to their positions in ROKU. Readystate Asset Management LP purchased a new position in Roku during the 2nd quarter valued at approximately $22,373,000. Wedmont Private Capital bought a new position in shares of Roku during the second quarter valued at approximately $262,000. HB Wealth Management LLC increased its stake in Roku by 6.7% in the second quarter. HB Wealth Management LLC now owns 3,679 shares of the company’s stock worth $508,000 after purchasing an additional 232 shares during the period. Azimuth Capital Investment Management LLC purchased a new position in Roku in the 2nd quarter worth about $20,136,000. Finally, AlphaGrep UK Ltd bought a new position in Roku in the 2nd quarter worth about $710,000. Hedge funds and other institutional investors own 86.30% of the company’s stock.
Roku Price Performance NASDAQ:ROKU opened at $155.59 on Monday. Roku, Inc. has a 12 month low of $78.53 and a 12 month high of $159.89. The firm has a market capitalization of $23.09 billion, a PE ratio of 66.49 and a beta of 2.05. The business’s fifty day moving average price is $148.57 and its 200 day moving average price is $124.95.
Roku (NASDAQ:ROKU – Get Free Report) last posted its earnings results on Wednesday, August 5th. The company reported $1.08 earnings per share for the quarter, topping the consensus estimate of $0.61 by $0.47. Roku had a return on equity of 13.73% and a net margin of 6.82%.The firm had revenue of $1.35 billion during the quarter, compared to analysts’ expectations of $1.30 billion. During the same quarter in the previous year, the business earned $0.07 earnings per share. The firm’s revenue was up 21.9% compared to the same quarter last year. As a group, equities analysts anticipate that Roku, Inc. will post 2.85 EPS for the current year. Roku News Summary Here are the key news stories impacting Roku this week:
Positive Sentiment: Improving earnings outlook: Zacks assigned Roku a No. 1 “Strong Buy” ranking, citing upward EPS revisions. The rating follows Roku’s latest quarterly results, which exceeded consensus estimates for both earnings and revenue, with revenue rising 21.9% year over year. Bullish EPS Revisions Back IBKR, SNDK, and ROKU Positive Sentiment: Short-term technical momentum: ROKU recently moved above its 20-day moving average, suggesting improving near-term trading momentum and investor support. Roku Just Overtook the 20-Day Moving Average Positive Sentiment: Premium hardware expansion: Roku’s Pro Series OLED televisions, starting at $999, could improve its position in higher-end TV hardware and provide additional opportunities to monetize its platform. Roku’s $999 OLED Could Change How TV Makers Make Money Neutral Sentiment: Platform activity: Pluto TV launched a major update on Roku TVs and players, while the Roku Streaming Stick Plus returned to its prior Amazon price. These developments may support engagement and device demand, but their direct impact on near-term revenue is unclear. Pluto TV Rolls Out an Update on Roku Devices Neutral Sentiment: Consumer support coverage: Articles describing simple Roku troubleshooting steps and retail discounts for Roku TVs may help customer experience and product sales, but are unlikely to materially affect valuation. Common Roku Problems Negative Sentiment: Concentrated insider selling: Executives and directors sold a combined 20,846 shares worth roughly $3.25 million. The transactions were made under pre-arranged Rule 10b5-1 plans, and most covered tax withholding on vested equity awards, reducing the bearish significance. Still, the volume of selling may weigh on sentiment, particularly with ROKU near its annual high. Roku Insider Selling Analyst Ratings Changes ROKU has been the topic of several research reports. Guggenheim lowered Roku from a “buy” rating to a “neutral” rating and raised their price target for the company from $145.00 to $160.00 in a research note on Friday, August 7th. Susquehanna lowered shares of Roku from a “positive” rating to a “neutral” rating and set a $160.00 price target on the stock. in a report on Tuesday, June 16th. UBS Group upped their price objective on shares of Roku from $126.00 to $172.00 and gave the company a “neutral” rating in a report on Friday, August 7th. Citigroup upped their target price on Roku from $120.00 to $157.00 and gave the company a “neutral” rating in a research report on Friday, July 17th. Finally, Rosenblatt Securities reiterated a “buy” rating and issued a $160.00 price target on shares of Roku in a report on Monday, August 10th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and nineteen have given a Hold rating to the stock. According to data from MarketBeat, Roku has a consensus rating of “Hold” and an average target price of $156.17.
Check Out Our Latest Analysis on Roku
Insider Buying and Selling at Roku In related news, insider Gilbert Fuchsberg sold 4,824 shares of the company’s stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $155.64, for a total value of $750,807.36. Following the completion of the sale, the insider directly owned 40,168 shares of the company’s stock, valued at $6,251,747.52. This represents a 10.72% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Charles Collier sold 7,067 shares of the business’s stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $156.86, for a total value of $1,108,529.62. Following the completion of the sale, the insider owned 22,700 shares of the company’s stock, valued at approximately $3,560,722. This represents a 23.74% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders have sold 145,773 shares of company stock valued at $20,575,950. 13.45% of the stock is owned by insiders.
About Roku (Free Report)
Roku, Inc (NASDAQ: ROKU) is a technology company that develops and operates a proprietary streaming platform designed to deliver entertainment content to consumers via internet-connected devices and smart televisions. Since its inception in 2002 in California, Roku has focused on simplifying access to streaming services for viewers worldwide. The company’s platform enables users to discover, access and manage a wide array of over-the-top content from major streaming services, free ad-supported channels and niche providers.
At the core of Roku’s product lineup are a range of streaming players and sticks, which connect to televisions via HDMI and deliver the Roku OS experience.
Featured Stories Five stocks we like better than Roku AI Token Costs Are Changing the Hardware vs. Software Debate 3 ETFs That Could Move as Rate Expectations Shift 3 Stocks With September Catalysts Investors Shouldn’t Ignore Ollie’s Bargain Outlet Stock Falls on Weak Comps Despite Margin Gains Want to see what other hedge funds are holding ROKU? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Roku, Inc. (NASDAQ:ROKU – Free Report).
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In the latest trading session, Roku (ROKU - Free Report) closed at $155.59, marking a -1.72% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.38%. Elsewhere, the Dow saw a downswing of 0.51%, while the tech-heavy Nasdaq depreciated by 0.29%.
The stock of video streaming company has risen by 5.49% in the past month, leading the Consumer Discretionary sector's gain of 1.41% and the S&P 500's gain of 2.08%.
Market participants will be closely following the financial results of Roku in its upcoming release. In that report, analysts expect Roku to post earnings of $0.55 per share. This would mark year-over-year growth of 243.75%. In the meantime, our current consensus estimate forecasts the revenue to be $1.41 billion, indicating a 16.49% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.78 per share and revenue of $5.61 billion. These totals would mark changes of +371.19% and +18.34%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Roku. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 18.2% higher. Roku is holding a Zacks Rank of #1 (Strong Buy) right now.
In the context of valuation, Roku is at present trading with a Forward P/E ratio of 56.97. Its industry sports an average Forward P/E of 11.4, so one might conclude that Roku is trading at a premium comparatively.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 90, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Roku (ROKU - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, ROKU crossed above the 20-day moving average, suggesting a short-term bullish trend.
The 20-day simple moving average is a popular investing tool. Traders like this SMA because it offers a look back at a stock's price over a shorter period and helps smooth out price fluctuations. The 20-day can also show more trend reversal signals than longer-term moving averages.
The 20-day moving average can show signals that are similar to other SMAs as well. If a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.
ROKU has rallied 7.3% over the past four weeks, and the company is a Zacks Rank #1 (Strong Buy) at the moment. This combination suggests ROKU could be on the verge of another move higher.
Looking at ROKU's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 4 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.
Investors should think about putting ROKU on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
SAN JOSE, Calif.--(BUSINESS WIRE)--Today, Roku launched its first-ever OLED TVs: the new Roku Pro Series OLED TV and Roku Pro Series LX OLED TV. As demand grows for high-performance displays at approachable prices, Roku's new lineup means that there's no need to compromise on picture quality, delivering on Roku's commitment to TV that's both delightfully simple and better for everyone. Available exclusively on Amazon, these two models bring together stunning display technology and sleek design.
Building a successful investment portfolio takes skill and hard work, no matter if you're a growth, value, income, or momentum-focused investor.
How do you find the right combination of stocks that will generate returns that could fund your retirement, or your kids' college tuition, or your short- and long-term savings goals?
Enter the Zacks Rank.
What is the Zacks Rank?The Zacks Rank, which is a unique, proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, that makes building a winning portfolio easier.
There are four main factors behind the Zacks Rank: Agreement, Magnitude, Upside, and Surprise.
Agreement is the extent to which all brokerage analysts are revising their earnings estimates in the same direction. The greater the percentage of analysts revising their estimates higher, the better chance the stock will outperform.
Magnitude is the size of the recent change in the consensus estimate for the current and next fiscal years.
Upside is the difference between the most accurate estimate, which is calculated by Zacks, and the consensus estimate.
Surprise is made up of a company's last few quarters' earnings per share surprises; companies with a positive earnings surprise are more likely to beat expectations in the future.
Each factor is given a raw score, which is recalculated every night and compiled into the Zacks Rank. Utilizing this data, stocks are put into five different groups: Strong Buy, Buy, Hold, Sell, and Strong Sell.
The Power of Institutional InvestorsThe Zacks Rank also allows individual investors, or retail investors, to benefit from the power of institutional investors.
Institutional investors are responsible for managing the trillions of dollars invested in mutual funds, hedge funds, and investment banks. Research has shown that these investors can and do move the market due to the large amount of money they deal with, and thus, the market tends to move in the same direction as them.
These investors are known for designing valuation models that focus on earnings and earnings expectations in order to figure out the fair value of a company and its shares. If earnings estimates are raised, it puts a higher value on a company.
With these changes, institutional investors will act, usually buying stocks with rising estimates and selling those with falling estimates. An increase in earnings expectations can potentially lead to higher stock prices and bigger gains for the investor.
Because it can take a long time for an institutional investor to build a position--sometimes weeks, if not months--retail investors who get in at the first sign of upward revisions have a distinct advantage over these larger investors, and can benefit from the expected institutional buying that will follow.
Not only can the Zacks Rank help you take advantage of trends in earnings estimate revisions, but it can also provide a way to get into stocks that are highly sought after by professionals.
How to Invest with the Zacks RankThe Zacks Rank is known for transforming investment portfolios. In fact, a portfolio of Zacks Rank #1 (Strong Buy) stocks has beaten the market in 26 of the last 32 years, with an average annual return of +23.8%.
Moreover, stocks with a new #1 (Strong Buy) ranking have some of the biggest profit potential, while those that fell to a #4 (Sell) or #5 (Strong Sell) have some of the worst.
Let's take a look at Roku (ROKU - Free Report) , which was added to the Zacks Rank #1 list on September 1, 2026. Roku is the leading TV streaming platform provider in the United States, Canada and Mexico based on hours streamed.
Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.36 to $2.78 per share. ROKU boasts an average earnings surprise of 94.7%.
Earnings are forecasted to see growth of 371.2% for the current fiscal year, and sales are expected to increase 18.3%.
ROKU has been moving higher over the past four weeks as well, up 7.6% compared to the S&P 500's gain of 2.7%.
Bottom LineWith a #1 (Strong Buy) ranking, positive trend in earnings estimate revisions, and strong market momentum, Roku should be on investors' shortlist.
If you want even more information on the Zacks Ranks, or one of our many other investing strategies, check out the Zacks Education home page.
Discover Today's Top StocksOur private Zacks #1 Rank List, based on our quantitative Zacks Rank stock-rating system, has more than doubled the S&P 500 since 1988. Applying the Zacks Rank in your own trading can boost your investing returns on your very next trade. See Today's Zacks #1 Rank List >>
LAS VEGAS, Aug. 27, 2026 (GLOBE NEWSWIRE) -- Lingerie Fighting Championships (LFC OTCID:BOTY), the Las Vegas-based combat sports entertainment brand, today announced the launch of LFC Network, a new streaming channel that is unapologetically for men. Available exclusively on the Roku platform, LFC Network is unapologetically for men and serves up the type of programming they crave most.
The channel brings together LFC’s flagship lingerie fighting events alongside motorsports, golf, and other action and lifestyle programming curated specifically for a male audience. It’s a dedicated, on-demand destination that adds to the LFC brand’s growing footprint.
“We built LFC Network for men who appreciate beautiful women and are tired of being told what they’re allowed to enjoy,” said Shaun Donnelly, CEO of Lingerie Fighting Championships. “Beautiful women, MMA, professional wrestling, fast cars, and a good round of golf — that’s the channel. No apologies, no watering it down. This is programming made for men, by people who understand exactly what that audience wants.”
The launch of LFC Network follows a period of rapid expansion for LFC, which has been building out live event programming, partnership infrastructure, and a proposed permanent boutique venue in Las Vegas. LFC Network gives the brand a direct, always-on channel to its audience which includes more than 6 million social media followers, complementing live events and pay-per-view programming with a continuous streaming presence.
“The channel features dozens of original series you can’t find anywhere else,” Donnelly promises. These include Get Wet, the first talk show shot in a pool, Modz & Bodz, an automotive show that features beautiful models working on hot cars, and Tight which follows the world’s only all-girl porn star rock band as they embark on a booze fueled tour. Series in development include a mother and daughter hosted dating show, lingerie arm wrestling and the Power Slap competitor Power Spank.
LFC Network is available now by searching “LFC Network” in the Roku Channel Store or visiting https://rebrand.ly/lfcnetworkroku.
ABOUT LINGERIE FIGHTING CHAMPIONSHIPS (LFC)
Lingerie Fighting Championships (LFC) is a publicly traded Las Vegas-based combat sports entertainment brand delivering live fight events, pay-per-view programming, and now streaming content through LFC Network on Roku.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.8% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Roku (ROKU - Free Report) Roku is the leading TV streaming platform provider in the United States, Canada and Mexico based on hours streamed.
ROKU is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. ROKU has a Growth Style Score of A, forecasting year-over-year earnings growth of 371.2% for the current fiscal year.
Five analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.36 to $2.78 per share. ROKU also boasts an average earnings surprise of +94.7%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, ROKU should be on investors' short list.
Roku (NASDAQ:ROKU – Get Free Report) and Vivendi (OTCMKTS:VIVEF – Get Free Report) are both communication services companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, earnings, analyst recommendations and valuation.
Profitability This table compares Roku and Vivendi’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Roku 6.82% 13.73% 8.34% Vivendi N/A N/A N/A Valuation and Earnings This table compares Roku and Vivendi”s revenue, earnings per share (EPS) and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Roku $4.74 billion 4.91 $88.36 million $2.34 67.01 Vivendi N/A N/A N/A $2.45 0.80 Roku has higher revenue and earnings than Vivendi. Vivendi is trading at a lower price-to-earnings ratio than Roku, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations This is a breakdown of current recommendations and price targets for Roku and Vivendi, as reported by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Roku 0 19 7 1 2.33 Vivendi 0 0 0 0 0.00 Roku presently has a consensus price target of $156.17, suggesting a potential downside of 0.40%. Given Roku’s stronger consensus rating and higher possible upside, analysts clearly believe Roku is more favorable than Vivendi.
Institutional & Insider Ownership 86.3% of Roku shares are owned by institutional investors. Comparatively, 29.2% of Vivendi shares are owned by institutional investors. 13.4% of Roku shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary Roku beats Vivendi on 11 of the 12 factors compared between the two stocks.
About Roku (Get Free Report)
Roku, Inc., together with its subsidiaries, operates a TV streaming platform in the United states and internationally. The company operates in two segments, Platform and Devices. Its streaming platform allows users to find and access TV shows, movies, news, sports, and others. The Platform segment offers digital advertising, including direct and programmatic video advertising, media and entertainment promotional spending, and related services; and streaming services distribution, such as subscription and transaction revenue shares, and sale of premium subscriptions and branded app buttons on remote controls. The Devices segment provides sale of streaming players, Roku-branded TVs, smart home products and services, audio products, and related accessories as well as licensing arrangements with service operators. Roku, Inc. was incorporated in 2002 and is headquartered in San Jose, California.
About Vivendi (Get Free Report)
Vivendi SE operates as an entertainment, media, and communication company in France, the rest of Europe, the Americas, Asia/Oceania, and Africa. It operates through Canal+ Group, Lagardère, Havas, Prisma Media, Gameloft, Vivendi Village, New Initiatives, and Generosity and Solidarity segments. The Canal+ Group segment publishes and distributes premium and thematic pay-TV and free-to-air channels; and produces, sells, and distributes movies and TV series. The Lagardère segment engages in the publishing, media, and travel retail activities. The Havas segment includes communications disciplines, such as creativity, media expertise, and healthcare/wellness. The Prisma Media segment publishes French magazines and online videos. The Gameloft segment engages in the creation and publishing of downloadable video games for various console-PC-mobile platforms, tablets, triple-play boxes, and smart TVs. The Vivendi Village segment provides ticketing services and live performances through Olympia production, festival production, and venues. The New Initiatives segment operates Dailymotion, a video content aggregation and distribution platform, as well as develops ultra-high-speed Internet service. The Generosity and Solidarity segment operates CanalOlympia; and Vivendi Foundation, a Create Joy solidarity program, which supports initial and professional training projects. The company was founded in 1853 and is headquartered in Paris, France.
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HUYA (NYSE: HUYA - Get Free Report) and Roku (NASDAQ: ROKU - Get Free Report) are both communication services companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, valuation, earnings, risk, analyst recommendations and profitability. Profitability This table compares HUYA and Roku's net margins,
Walt Disney: Modest Expansion Within a Large Global Revenue BaseWalt Disney (DIS +1.96%) primarily generates revenue by producing widely distributed entertainment television and film content, operating an extensive global network of physical theme parks, and offering multiple direct-to-consumer digital streaming services to everyday subscribers.
While executing a broader corporate restructuring initiative in July of 2026 that involved various departmental staff reductions, it officially reported a 22% operating margin for the quarter ended June 27, 2026.
Roku: Consistent Upward Momentum in Top-Line Revenue GenerationRoku (ROKU +2.34%) earns its core organizational revenue primarily by selling targeted digital video advertising space, managing various user content subscriptions, and physically distributing dedicated television streaming hardware and accessories directly to everyday consumers.
While entering a definitive agreement in June of 2026 to be acquired by Fox Corporation, it generated an 11% operating margin for the quarter ended June 30, 2026.
Why Quarterly Revenue Remains a Foundational Financial Metric for Evaluating These BusinessesRevenue helps everyday investors understand the financial scale of a business before any operating expenses are deducted. This metric reveals whether an organization is successfully attracting customers and growing its overall business volume over time.
Tracking Recent Quarterly Revenue Trends for Walt Disney and RokuQuarter (Period End)Walt Disney RevenueRoku RevenueQ3 2024$22.6 billion (Q4 FY2024, period ended Sept. 2024)$1.1 billion (period ended Sept. 2024)Q4 2024$24.7 billion (Q1 FY2025, period ended Dec. 2024)$1.2 billion (period ended Dec. 2024)Q1 2025$23.6 billion (Q2 FY2025, period ended March 2025)$1.0 billion (period ended March 2025)Q2 2025$23.6 billion (Q3 FY2025, period ended June 2025)$1.1 billion (period ended June 2025)Q3 2025$22.5 billion (Q4 FY2025, period ended Sept. 2025)$1.2 billion (period ended Sept. 2025)Q4 2025$26.0 billion (Q1 FY2026, period ended Dec. 2025)$1.4 billion (period ended Dec. 2025)Q1 2026$25.2 billion (Q2 FY2026, period ended March 2026)$1.2 billion (period ended March 2026)Q2 2026$25.2 billion (Q3 FY2026, period ended June 2026)$1.4 billion (period ended June 2026)Data source: Company filings. Data as of Aug. 12, 2026.
Foolish TakeThe revenue trends between Disney and Roku reveal the latter enjoys steady year-over-year increases. For Disney, sales growth has proven less reliable, although the past three quarters have shown greater consistency as the company navigated a leadership transition, with Josh D'Amaro taking the reins from longtime CEO Robert Iger in March.
Perhaps the new CEO will return Disney to more consistent year-over-year revenue growth. The entertainment giant's sales of $25.2 billion in its fiscal third quarter, ended June 27, represented a 7% year-over-year increase.
One of its enduring strengths has been its many popular franchises. For example, Toy Story 5 was a box office success, generating over $4 billion, but it also produced $1 billion in retail sales. Disney also enjoyed a robust fiscal Q3 revenue expansion of 10% year over year in its Experiences segment, which encompass its theme park and cruise businesses.
However, Disney's growth pales in comparison to Roku's, as the streaming specialist's Q2 revenue of $1.4 billion represented a strong 22% year-over-year increase. Whether that trend will continue is not known, as Roku heads toward becoming a part of the Fox Corporation, a deal that's expected to close in the first half of 2027.
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Roku (ROKU - Free Report) , which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Roku currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market? In order to see if ROKU is a promising momentum pick, let's examine some Momentum Style elements to see if this video streaming company holds up.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For ROKU, shares are up 5.59% over the past week while the Zacks Broadcast Radio and Television industry is up 3.32% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 5.91% compares favorably with the industry's 3.29% performance as well.
While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Shares of Roku have increased 22.25% over the past quarter, and have gained 72.31% in the last year. On the other hand, the S&P 500 has only moved 4.93% and 21.47%, respectively.
Investors should also pay attention to ROKU's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. ROKU is currently averaging 2,723,294 shares for the last 20 days.
Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with ROKU.
Over the past two months, 4 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost ROKU's consensus estimate, increasing from $2.42 to $2.75 in the past 60 days. Looking at the next fiscal year, 5 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that ROKU is a #1 (Strong Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Roku on your short list.
Roku (ROKU - Free Report) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.
Analysts' growing optimism on the earnings prospects of this video streaming company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
Consensus earnings estimates for the next quarter and full year have moved considerably higher for Roku, as there has been strong agreement among the covering analysts in raising estimates.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate RevisionsThe company is expected to earn $0.56 per share for the current quarter, which represents a year-over-year change of +250.0%.
The Zacks Consensus Estimate for Roku has increased 8.64% over the last 30 days, as two estimates have gone higher while two have gone lower.
Current-Year Estimate RevisionsFor the full year, the earnings estimate of $2.75 per share represents a change of +366.1% from the year-ago number.
The revisions trend for the current year also appears quite promising for Roku, with four estimates moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 17.14%.
Favorable Zacks RankThe promising estimate revisions have helped Roku earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom LineWhile strong estimate revisions for Roku have attracted decent investments and pushed the stock 6.5% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.
Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, August 12:
Roku, Inc. (ROKU - Free Report) : This TV streaming platform company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 12.5% over the last 60 days.
Roku's shares gained 18.2% over the last three months compared with the S&P 500’s decline of 5.2%. The company possesses a Momentum Score of A.
Tenet Healthcare Corporation (THC - Free Report) : This healthcare services company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.8% over the last 60 days.
Tenet’s shares gained 32.5% over the last three months compared with the S&P 500’s decline of 5.2%. The company possesses a Momentum Score of A.
Citizens Financial Services, Inc. (CZFS - Free Report) : This bank holding company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 6% over the last 60 days.
Citizens Financial's shares gained 31.3% over the last three months compared with the S&P 500’s decline shares of 5.2%. The company possesses a Momentum Score of A.
See the full list of top ranked stocks here
Learn more about the Momentum score and how it is calculated here.
LOS ANGELES--(BUSINESS WIRE)--Creativ Company today announced the appointment of Sarah Saul as Vice President of Marketing and Communications, where she will lead the company's global brand strategy, corporate communications, public relations, content marketing, executive thought leadership, and industry engagement practices. After helping build and lead global communications for Roku's multi-billion-dollar advertising and platform business, Saul joins Creativ Company at a pivotal moment as the.
Ve středu ráno naznačují futures kontrakty pro zámořské akcie mírný růst (+0,15 %), evropské akcie by mohly otvírat bez větších změn. Asie byla přes noc tažena vzhůru Jižní Koreou (+4 %), kde se dařilo Samsungu a SK Hynix (+6 %). V prodlouženém obchodování prudce vzrostly akcie CoreWeave (+16 %), když nadále prudce rostou výdaje na AI. Ceny ropy ale nadále spíše rostou, Brent se obchoduje těsně pod 90 USD za barel. I proto budou dnes odpoledne sledovány údaje o CPI inflaci v USA. Dnes reportovala v Evropě nad odhady ABN. Praha včera hodnotily výsledky ČEZu, společnost lehce navýšila výhled do konce roku. Nejprve se po předchozích růstech na akciích vybíraly zisky, odpoledne se akcie vracely nad 1370 Kč (-0,65 %). Vzhledem k tomu, že výhled cen komodit zůstává prorůstový a v průběhu příštího roku by mělo postupně docházet ke krokům směřujícím k odkupu akcií, mohla by cena akcií postupně směřovat k 1400 Kč i výše (v příštích týdnech/měsících).
Two years ago, AI-generated video looked like it belonged in an uncanny-valley horror movie — mangled hands, flickering faces, six-fingered extras wandering through scenes that made no sense.
Contravisory Investment Management Inc. bought a new stake in Roku, Inc. (NASDAQ:ROKU – Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund bought 8,569 shares of the company’s stock, valued at approximately $1,184,000.
A number of other large investors have also added to or reduced their stakes in ROKU. Empowered Funds LLC grew its position in shares of Roku by 18.6% in the 1st quarter. Empowered Funds LLC now owns 3,291 shares of the company’s stock worth $232,000 after buying an additional 515 shares during the last quarter. Focus Partners Wealth acquired a new stake in Roku in the first quarter valued at approximately $229,000. EverSource Wealth Advisors LLC boosted its stake in Roku by 145.4% in the second quarter. EverSource Wealth Advisors LLC now owns 1,394 shares of the company’s stock valued at $123,000 after acquiring an additional 826 shares in the last quarter. First Trust Advisors LP grew its holdings in Roku by 231.0% in the second quarter. First Trust Advisors LP now owns 70,786 shares of the company’s stock worth $6,221,000 after purchasing an additional 49,399 shares during the last quarter. Finally, Brown Advisory Inc. purchased a new position in Roku in the second quarter worth $326,000. 86.30% of the stock is currently owned by institutional investors.
Analyst Ratings Changes Several analysts have recently commented on ROKU shares. KeyCorp lowered Roku from an “overweight” rating to a “sector weight” rating in a report on Monday, June 15th. Pivotal Research restated a “buy” rating and set a $160.00 target price (up from $140.00) on shares of Roku in a research note on Friday, May 1st. JPMorgan Chase & Co. reaffirmed a “neutral” rating and set a $160.00 target price (up from $150.00) on shares of Roku in a research report on Tuesday, June 16th. Oppenheimer cut Roku from an “outperform” rating to a “market perform” rating in a research note on Monday, June 15th. Finally, Rosenblatt Securities raised their price target on Roku from $150.00 to $160.00 and gave the stock a “buy” rating in a report on Tuesday, June 16th. Nine investment analysts have rated the stock with a Buy rating and eighteen have issued a Hold rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Hold” and an average price target of $155.75.
Check Out Our Latest Research Report on Roku
Insider Activity In other Roku news, insider Charles Collier sold 20,538 shares of the firm’s stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $145.93, for a total transaction of $2,997,110.34. Following the completion of the transaction, the insider directly owned 15,200 shares of the company’s stock, valued at approximately $2,218,136. This trade represents a 57.47% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Neil D. Hunt sold 2,000 shares of Roku stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $146.25, for a total transaction of $292,500.00. Following the sale, the director owned 9,629 shares of the company’s stock, valued at approximately $1,408,241.25. The trade was a 17.20% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 162,452 shares of company stock valued at $21,811,132. 13.45% of the stock is owned by insiders.
Roku News Summary Here are the key news stories impacting Roku this week:
Positive Sentiment: Roku reported second-quarter revenue of approximately $1.35 billion, up 21.9% year over year and above the roughly $1.30 billion consensus estimate. Earnings reached about $1.08 per share, compared with $0.07 a year earlier and estimates near $0.61, while the company also highlighted record profitability and free cash flow. ROKU Q2 Earnings and Revenues Beat Estimates Positive Sentiment: The platform business remains Roku’s primary growth engine. Advertising spending increased 25% and subscriptions rose 26%, supporting higher-margin revenue and stronger engagement. Roku Ad Spend Up 25%, Subscriptions Rise 26% Positive Sentiment: Roku said improved search capabilities and artificial intelligence help viewers interpret broad queries and discover content more efficiently. Better discovery could increase viewing time, platform engagement and advertising opportunities. Roku Credits Search and AI Neutral Sentiment: Fox’s proposed $22 billion acquisition of Roku remains pending. The transaction may provide strategic support, but Roku is not holding an earnings call or issuing financial guidance while the deal proceeds. Roku Second-Quarter Results Negative Sentiment: Despite improving cash flow, Roku’s valuation remains demanding, with a high earnings multiple and mixed signals between discounted-cash-flow estimates and market multiples. Pre-arranged insider sales, including a transaction by President Charles Collier, may also add modest investor caution. Roku Valuation Analysis Roku Price Performance Shares of ROKU stock opened at $153.11 on Monday. The firm has a market capitalization of $22.57 billion, a price-to-earnings ratio of 65.43 and a beta of 2.01. The business has a fifty day moving average of $138.39 and a 200 day moving average of $116.38. Roku, Inc. has a 1 year low of $78.53 and a 1 year high of $153.54.
Roku (NASDAQ:ROKU – Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The company reported $1.08 earnings per share for the quarter, beating the consensus estimate of $0.61 by $0.47. The business had revenue of $1.35 billion for the quarter, compared to the consensus estimate of $1.30 billion. Roku had a return on equity of 13.73% and a net margin of 6.82%.The company’s quarterly revenue was up 21.9% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.07 EPS. As a group, equities research analysts expect that Roku, Inc. will post 2.41 earnings per share for the current year.
About Roku (Free Report)
Roku, Inc (NASDAQ: ROKU) is a technology company that develops and operates a proprietary streaming platform designed to deliver entertainment content to consumers via internet-connected devices and smart televisions. Since its inception in 2002 in California, Roku has focused on simplifying access to streaming services for viewers worldwide. The company’s platform enables users to discover, access and manage a wide array of over-the-top content from major streaming services, free ad-supported channels and niche providers.
At the core of Roku’s product lineup are a range of streaming players and sticks, which connect to televisions via HDMI and deliver the Roku OS experience.
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Gilbert Fuchsberg, President of Subscriptions at Roku, Inc. (ROKU +2.03%), sold 10,719 shares of Class A Common Stock on August 6, 2026, for a total value of ~$1.6 million, according to a recent SEC Form 4 filing.
Transaction summaryMetricValueTransaction value~$1.6 millionShares sold10,719Post-transaction shares (directly held)40,380Post-transaction value$6.06 millionTransaction value based on SEC Form 4 weighted average sale price ($150.00); post-transaction value based on August 6, 2026 market close ($150.07).
Key questionsWhat was the nature of this transaction?
The sale was executed under a Rule 10b5-1 trading plan, which allows insiders to schedule trades in advance to avoid concerns regarding the use of material non-public information.How does this impact the insider's total equity position?
Following the sale, Gilbert Fuchsberg retains 40,380 shares of Class A Common Stock held directly, representing an approximate 0.0272% ownership interest in the firm.What is the current business profile of the issuer?
Headquartered in San Jose, Roku operates a leading television streaming platform, with 26% year-over-year growth in subscriptions revenue to $548 million in the second quarter of 2026.What was the market context on the date of execution?
Shares were sold at $150.00 per share, while the stock was priced at $150.07 as of the August 6, 2026 market close.Company OverviewMetricValueShare Price (as of market close 2026-08-06)$150.07Market Capitalization$22.7 billionRevenue (TTM)$5.2 billionNet Income (TTM)$355.2 millionCompany SnapshotRoku operates a comprehensive streaming platform that enables users to discover and access diverse entertainment content including films, television series, live broadcasts, news, and sports, generating revenue through platform services and hardware sales.The company operates a dual-segment business model comprising its Platform segment, which monetizes through advertising and subscription services, and its Player segment, which generates revenue from hardware device sales and licensing arrangements.Roku serves millions of active user accounts globally, targeting consumers seeking accessible streaming solutions while partnering with content providers and advertisers seeking to reach cord-cutting audiences.Roku, Inc. is a leading streaming platform operator with a market cap of $22.7 billion. The company has demonstrated strong financial performance with trailing 12-month revenue of $5.2 billion, reflecting its dominant position in the streaming entertainment ecosystem.
Roku's competitive advantage derives from its open platform architecture, extensive content partnerships, and integrated hardware-software ecosystem that positions it as a critical infrastructure provider in the evolving digital entertainment landscape.
What this transaction means for investorsThe Aug. 6 sale of Roku stock for $150 per share by President of Subscriptions Gilbert Fuchsberg comes a day before shares hit a 52-week high of $153.54 on Aug. 7. Roku stock is up due to its impending acquisition by Fox Corporation.
Despite the rising share price, Fuchsberg’s disposition does not reflect the insider's personal view on the stock or the Fox acquisition, since the sale was a non-discretionary transaction performed as part of a pre-arranged Rule 10b5-1 trading plan.
The deal led to Fox shares falling on news that the media giant will take on $12 billion in new debt to finance the acquisition. As a successful streaming platform, Roku is an attractive addition for Fox.
Roku posted a strong 22% year-over-year increase in revenue to $1.4 billion in the second quarter. It also grew its Q2 bottom line substantially to $164.2 million compared to net income of $10.5 million in the previous year.
Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Roku. The Motley Fool has a disclosure policy.
Roku shares are testing new highs. What’s driving ROKU to record levels? What Catalyzed Roku’s Q2 Double Beat?The company posted a second-quarter double beat, with revenue of $1.355 billion (up 22%) topping the $1.298 billion consensus and adjusted EPS of $1.08 beating the 57 cents estimate. Management also withheld guidance and skipped the usual conference call because the company is in the process of being acquired by Fox Corp.
The quarter included records for net income, adjusted EBITDA, and free cash flow, plus 37.9 billion streaming hours (up 7%) and a home-screen refresh described as its biggest update in a decade. Roku also flagged sports-driven engagement, with the 2026 World Cup cited as a contributor as streaming hours climbed.
Fox’s own results are adding credibility to that sports tailwind, with revenue up 28% to $4.21 billion and advertising revenue up 78% to $1.92 billion as the World Cup delivered a record U.S. audience of nearly 63 million viewers.
The move mirrors Fox’s event-driven ad strength, which often leads Roku to benefit through higher CTV ad budgets and streaming engagement that flow through its Platform segment.
Roku’s Growth Strategy: What’s Next?“As we look ahead, we remain focused on disciplined execution, investing in long-term growth opportunities, and creating value for our shareholders. We believe our scale, platform strategy and financial strength position Roku to continue leading the evolution of TV streaming while delivering sustainable, long-term growth,” Roku CEO Anthony Wood and CFO Dan Jedda said in a shareholder letter.
Roku Stock Price Action: Current Trading UpdateROKU Stock Price Activity: Roku shares were up 1.55% at $152.39 at the time of publication on Friday, according to Benzinga Pro data.
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Key Takeaways ROKU beat Q2 earnings and revenue estimates, with EPS of $1.18 and revenues up 22% to $1.35 billion. Roku's Platform revenues rose 25% as Advertising and Subscriptions delivered strong year-over-year growth. Roku withheld Q3 and 2026 guidance following its pending acquisition agreement with Fox Corporation. Roku (ROKU - Free Report) shares have appreciated 2.12% since the company reported its second-quarter 2026 results on Aug. 06. The gain reflects continued strength in the company’s Platform business, driven by healthy growth in both Advertising and Subscriptions, alongside record profitability and free cash flow.
Roku reported second-quarter 2026 earnings of $1.18 per share, which beat the Zacks Consensus Estimate of 61 cents by 93.4%. The company had reported earnings of 7 cents per share in the year-ago quarter.
Revenues increased 22% year over year to $1.35 billion and beat the consensus mark by 4.23%.
Roku shares have appreciated 38.3% year to date, outperforming the Zacks Consumer Discretionary sector’s 9.3% decline.
Roku's Platform Business Drives Q2 GrowthThe company posted strong second-quarter 2026 results, supported by continued momentum across Advertising and Subscriptions, with Platform revenues increasing 25% year over year. Roku also continued rolling out its redesigned Home Screen, aimed at improving content discovery, personalization and household retention.
Advertising performance was driven by deeper programmatic capabilities, with third-party demand-side platforms accounting for nearly three-fourths of in-stream video ad spend during the quarter. The Roku Experience continued to diversify its advertiser base, with non-Media and Entertainment brands representing more than one-third of advertising revenue. Political advertising exceeded the comparable quarter from the 2024 election cycle, with spending expected to build through the second half of 2026.
Subscriptions benefited from the launches of FOX One and Peacock within Premium Subscriptions, which brought World Cup coverage to The Roku Channel. Roku also continued expanding its owned-and-operated SVOD service, Howdy, through its Mexico launch and standalone mobile app rollout.
Devices performance reflected the continued ramp of the Hiro TV lineup at Target and strength at Amazon and Best Buy, with Roku-made TVs reaching approximately 5% of total U.S. TV unit sales volume. Expanded OEM partnerships with Hisense and TCL are expected to support unit growth in the second half of 2026.
Q2 Segment Details of ROKUPlatform revenues (90.1% of revenues) increased 25.2% year over year to $1.22 billion.
Advertising revenues grew 24.8% year over year to $672.8 million, driven by continued programmatic demand strength and a mix shift toward higher-margin ad products.
Subscriptions revenues grew 25.6% year over year to $548.2 million, driven by growth in Premium Subscriptions during a seasonally softer period for the category.
Devices revenues (9.9% of revenues) declined 1.4% from the year-ago quarter's level to $133.7 million.
ROKU's Operating DetailsGross margin expanded 490 basis points (bps) from the year-ago quarter's level to 49.7%.
Platform gross margin expanded 200 bps to 53%. Within the segment, Advertising gross margin increased 650 basis points to 62.4%, driven by a favorable mix toward higher-margin advertising products. Subscriptions gross margin contracted 360 basis points to 41.4%, primarily due to a mix shift toward Premium Subscriptions. Devices gross margin improved to 20.1%, aided by the IEEPA refund.
Operating expenses increased 1% year over year to $527.5 million. Research and development expenses rose 1% to $179.7 million, while general and administrative expenses increased 25% to $124.6 million. Sales and marketing expenses declined 8% to $223.2 million.
Adjusted EBITDA increased 225% year over year to a record $254.3 million, with the adjusted EBITDA margin expanding 1,170 basis points to 18.8%. Operating income increased to $146.2 million from an operating loss of $23.3 million in the year-ago quarter, while net income surged to $164.2 million from $10.5 million.
Balance Sheet of RokuAs of June 30, 2026, cash and cash equivalents were $2 billion compared with $1.65 billion as of March 31, 2026. As of June 30, 2026, Roku had no long-term debt.
Free cash flow on a trailing-twelve-month basis reached a record high of $704.1 million, up approximately 80% year over year.
Roku Withholds Guidance Amid Pending FOX AcquisitionOn June 15, 2026, Fox Corporation and Roku entered into a definitive agreement under which Fox will acquire Roku. In light of the pending transaction, the company did not provide financial guidance for the third quarter or 2026.
Zacks Rank & Stocks to ConsiderRoku currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader sector are American Public Education (APEI - Free Report) , Newsmax (NMAX - Free Report) and Target Hospitality (TH - Free Report) . Each stock carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
American Public Education is set to report second-quarter 2026 results on Aug. 10. The Zacks Consensus Estimate for American Public Education’s second-quarter EPS is pegged at 36 cents, unchanged over the past 30 days and indicating an improvement of 1900% year over year.
Newsmax is slated to report second-quarter 2026 results on Aug. 13. The Zacks Consensus Estimate for Newsmax’s second-quarter loss is pegged at 2 cents per share, unchanged over the past 30 days and indicating an improvement of 96.61% year over year.
Target Hospitality is slated to report second-quarter 2026 results on Aug. 10. The Zacks Consensus Estimate for Target Hospitality’s second-quarter loss is pegged at 10 cents per share, unchanged over the past 30 days and indicating an improvement of 33.33% year over year.
While the top- and bottom-line numbers for Roku (ROKU) give a sense of how the business performed in the quarter ended June 2026, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Roku (ROKU) came out with quarterly earnings of $1.18 per share, beating the Zacks Consensus Estimate of $0.61 per share. This compares to earnings of $0.07 per share a year ago.
Roku surged past Wall Street expectations in the second quarter, with revenue and earnings ahead of analysts’ expectations.
Earnings per share hit $1.08 on a diluted basis, up from 7 cents a share in the year-earlier period. Total revenue climbed 22% to $1.35 billion, paced by a 25% rise in platform revenue driven equally by gains in advertising and subscriptions.
The report is the company’s first since agreeing to be acquired by Fox Corp. in June in a proposed $22 billion deal. The companies expect the transaction to close in the first half of 2027. Citing the deal, Roku elected not to convene an earnings conference call.
In their quarterly shareholder letter, CEO Anthony Wood and CFO and COO Dan Jedda said the platform revenue increase was largely due to the first major overhaul of the Roku home screen in more than a decade. Unveiled last May, the new interface completed its rollout in the third quarter, with international markets set to unveil it in the coming months.
The new experience “is designed to maximize content discovery and personalization for our viewers,” the execs wrote, “while simultaneously delivering benefits to our content partners and advertisers, and growing platform monetization.”
Results thus far have been “encouraging,” the letter said. “For example, our new home screen improved our ability to retain households in the U.S., resulting in more users we can serve and thus reducing overall costs to grow streaming households.”
While advertising continues to be one of the bedrock elements of Roku’s business model, the company has been ramping up its ability to make money by enabling subscriptions to dozens of streaming services in the U.S. During the quarter, it added Peacock’s ad-free tier to its premium subscriptions hub, where Apple TV debuted earlier in the year.
Wood and Jedda in the letter called the Fox acquisition “an extraordinary opportunity to accelerate our vision, allowing us to scale faster and innovate more aggressively for viewers, partners, and advertisers.”
Roku company logo is displayed on a building in Times Square in New York City, U.S., June 12, 2026. REUTERS/Jeenah Moon Purchase Licensing Rights, opens new tab
CompaniesAug 6 (Reuters) - Streaming platform Roku (ROKU.O), opens new tab on Thursday reported second-quarter revenue that beat Wall Street estimates, driven by its advertising and subscriptions segments.
Roku is awaiting the closure of a deal to be acquired by Fox Corp (FOXA.O), opens new tab for$22 billion, uniting the broadcaster's content empire with Roku's streaming distribution footprint. The deal is expected to close in the first half of 2027.
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Here are some details on the results:
Roku, a content distributor, carries streaming apps from Paramount and Netflix and has benefited from consumers leaving traditional TV.
The company has also focused on improving its ad-tech and content discovery tools to keep viewers engaged and attract marketing dollars from brands looking to reach cord-cutters.
Its advertising revenue rose 25% to $673 million in the quarter ended June 30 from a year ago, while subscription revenue climbed 26% to $548 million, with both segments benefiting from the FIFA World Cup.
Roku's total revenue grew 21.6% to $1.35 billion in the second quarter, beating analysts' average estimate of $1.30 billion, according to data compiled by LSEG.
Its results follow those of Fox, which beat Wall Street estimates for fourth-quarter revenue and profit, as the FIFA World Cup boosted advertising sales during a busy news cycle.
Reporting by Juby Babu in Mexico City; Editing by Shreya Biswas
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Charles Collier, President, Roku Media, sold 20,538 shares of Roku, Inc. (ROKU +2.12%) on August 4, 2026, according to a recent SEC Form 4 filing.
Transaction summaryMetricValueTransaction value$3.0 millionShares sold20,538Post-transaction shares (directly held)15,200Post-transaction value$2.24 millionTransaction value based on SEC Form 4 weighted average sale price ($145.93); post-transaction value based on August 04, 2026 market close ($147.33).
Key questionsWhat was the structural nature of this transaction?
Charles Collier executed a cashless option exercise, converting 20,538 derivative instruments at a strike price of $49.59 and immediately selling the underlying equity at a weighted average price of $145.93.How does this impact the executive's total equity exposure?
While direct ownership of common stock decreased to 15,200 shares, the executive retains substantial long-term exposure through 71,883 derivative securities, which include both vested and unvested awards.What is the recent performance context for this disposition?
The sale was executed at a time when the company has seen significant appreciation, with a 72% one-year total return as of the August 4, 2026 transaction date.Does this trade reflect a discretionary change in outlook?
No, the transaction was completed under a Rule 10b5-1 trading plan, which allows insiders to set predetermined instructions for trading to avoid concerns regarding material non-public information.Company OverviewMetricValueShare Price (as of market close 2026-08-04)$147.33Market Capitalization$21.9 billionRevenue (TTM)$5.0 billionNet Income (TTM)$201.5 millionCompany SnapshotRoku operates a comprehensive streaming television platform that enables users to discover and access a diverse array of content including films, television series, live broadcasts, news, and sports programming, generating revenue through both its Platform and Player segments.The company generates revenue through advertising on its platform, subscription services, and the sale of Roku-branded streaming devices, leveraging its substantial user base to monetize content delivery and device sales.Roku serves consumers seeking accessible streaming entertainment solutions and media companies seeking distribution channels, with a user base exceeding 60 million active accounts as of the most recent reported period.Roku, Inc. is a leading streaming television platform operator with a market capitalization of $21.9 billion and TTM revenue of $5.0 billion, demonstrating significant scale within the digital entertainment infrastructure sector. The company's dual-segment business model—combining a proprietary streaming platform with hardware devices—creates a vertically integrated ecosystem that captures value across content distribution and device monetization. Roku's competitive positioning is reinforced by its substantial active user base, diversified content library, and established relationships with content providers and advertisers.
What this transaction means for investorsAs previously mentioned, Collier’s sale of Roku shares occurred under the Rule10b5-1 trading plan, meaning it was a pre-planned sale. He also sold shares after the aforementioned 72% run-up in the stock price over the previous 12 months.
Today's Change
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3.11
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$
150.07
Still, the timing of the sale is intriguing. On June 15, Fox announced it would acquire Roku for $160.00 per share.
However, the fact that the stock has not traded at that level since the announcement seems to imply some uncertainty about that sale. The fact that Collier sold most of his shares in the $146 per share range could confirm that uncertainty, since all we know is that he pre-planned this sale at an unknown date.
Assuming the sale goes through as planned, investors who buy now could see a modest upside. Still, buying now is a bet that the deal closes sometime in the first half of 2027 as planned. Between that and the uncertainty behind the reasoning of Collier’s share sale, investors are likely best off selling or avoiding this entertainment stock.
Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Roku. The Motley Fool has a disclosure policy.
SAN JOSE, Calif.--(BUSINESS WIRE)--Today, Roku, Inc. (NASDAQ: ROKU) released second quarter 2026 results. Visit the Roku investor relations website to view the second quarter 2026 letter to shareholders.
On June 15, 2026, Fox Corporation (Nasdaq: FOXA, FOX) and Roku announced a definitive agreement under which FOX will acquire Roku. In light of the pending transaction, Roku will not host an earnings call and will not provide financial outlook.
About Roku
Roku pioneered streaming on TV. Today, it is the #1 TV streaming platform in the U.S., Canada, and Mexico by hours streamed (Hypothesis Group, Dec. 2025). Roku connects viewers to the content they love, enables content publishers to build and monetize large audiences through advertising and subscriptions, and provides advertisers with unique capabilities to reach and engage consumers. Roku streaming players and Roku-made TVs are available at major retailers, and licensed Roku TV™ models are sold by leading TV brands in more than 15 countries around the world. Roku also owns and operates The Roku Channel, the home of premium and free entertainment; Howdy, a low-cost subscription service; and Frndly TV, a live TV streaming service. Roku is headquartered in San Jose, Calif., U.S.A.
Roku is a registered trademark, and Roku TV is a trademark of Roku, Inc. in the U.S. and in other countries.
Roku, Inc. (NASDAQ:ROKU) will release its second quarter earnings report after the closing bell on Thursday, Aug. 6.
Analysts expect the San Jose, California-based company to report quarterly earnings of 56 cents per share, up from 7 cents per share in the year-ago period. The consensus estimate for Roku’s quarterly revenue is $1.3 billion. It reported $1.11 billion last year, according to Benzinga Pro.
Roku shares fell 0.3% to close at $146.96 on Wednesday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.
Considering buying ROKU stock? Here’s what analysts think:
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Market News and Data brought to you by Benzinga APIs
Key Takeaways ROKU expects about $1.3B in Q2 revenues, with Platform revenues up about 20% year over year.Roku's ads and subscription businesses likely benefited from platform upgrades and partner expansion.ROKU's Devices segment likely faced margin pressure from higher memory costs despite price increases. Roku (ROKU - Free Report) is scheduled to report its second-quarter 2026 results on Aug. 06, 2026.
For the second quarter, Roku expects total net revenues of approximately $1.3 billion. Platform revenues are expected to grow approximately 20% year over year. Device revenues are anticipated to be down in the high single digits year over year. Roku expects total gross profit of approximately $580 million and adjusted EBITDA of $170 million for the quarter.
The Zacks Consensus Estimate for second-quarter 2026 revenues is pegged at $1.3 billion, suggesting 16.98% year-over-year growth.
The consensus mark for earnings is pegged at 61 cents per share, unchanged over the past 30 days. This projection indicates a year-over-year increase of 771.43%.
Roku surpassed the Zacks Consensus Estimate for earnings in each of the trailing four quarters, with an average surprise of 107.32%.
Let us see how things are shaping up for the upcoming announcement.
Key Factors to ConsiderRoku's second-quarter performance is expected to have been driven by its Platform segment. Advertising revenues are likely to have benefited from higher adoption of Ads Manager and deeper integrations with third-party demand-side platforms, including Amazon DSP, The Trade Desk and Google's Display & Video 360. Home screen advertising enhancements and expanding programmatic capabilities may have also supported monetization. However, advertising growth is likely to have moderated due to tougher year-over-year comparisons. The broader advertising spending environment also remained uncertain, which may have weighed on demand.
Subscription revenues are likely to have benefited from the continued rollout of Tier 1 partners, including Apple TV and Peacock. Expansion of premium subscriptions into additional international markets may have also supported growth. Continued investments in AI-powered content discovery and advertising tools likely improved the user experience and platform efficiency. However, the financial contribution from these initiatives may have remained modest. Growth may have also normalized as the Frndly acquisition anniversary passed, reducing the inorganic boost seen in earlier quarters.
The Devices segment is likely to have remained under pressure. Higher memory costs may have continued to weigh on device margins despite relatively stable unit demand. Recent price increases across Roku's streaming player portfolio may have provided some relief, though the benefit was likely to have been limited in the quarter.
The pending acquisition by Fox Corporation remained a key development during the quarter. While the transaction is unlikely to have materially affected second-quarter operating results, it may have remained an important consideration for investors as regulatory and shareholder approval processes continued. Overall, competitive pressures and macroeconomic uncertainty likely continued to influence Roku's second-quarter performance.
What Our Model Says About Roku StockOur proven model does not conclusively predict an earnings beat for Roku this time around. Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, this is not the case here, as you can see below.
Roku currently has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks to ConsiderHere are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Sandisk Corporation (SNDK - Free Report) is scheduled to report fourth-quarter fiscal 2026 results on Aug. 5. Currently, Sandisk has an Earnings ESP of +4.13% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Sandisk’s fiscal fourth-quarter earnings is pegged at $34.24 per share, indicating a year-over-year surge of 11,707%. Earnings estimates for the quarter have been revised upward by 5.7% over the past 60 days.
Western Digital Corporation (WDC - Free Report) is scheduled to report fourth-quarter fiscal 2026 results on Aug. 5. Currently, Western Digital has an Earnings ESP of +3.22% and flaunts a Zacks Rank #1.
The Zacks Consensus Estimate for Western Digital’s fiscal fourth-quarter earnings is pegged at $3.35 per share, calling for a year-over-year increase of 101.8%. Earnings estimates for the quarter have been revised upward by 3 cents in the past 30 days.
MKS Inc. (MKSI - Free Report) is scheduled to report second-quarter 2026 results on Aug. 5. Currently, MKS has an Earnings ESP of +2.64% and carries a Zacks Rank #2.
The Zacks Consensus Estimate for MKS’ second-quarter earnings is pegged at $2.93 per share, calling for a year-over-year jump of 65.5%. Earnings estimates for the quarter have been revised northward by a penny in the past 30 days.
Analysts on Wall Street project that Roku (ROKU - Free Report) will announce quarterly earnings of $0.61 per share in its forthcoming report, representing an increase of 771.4% year over year. Revenues are projected to reach $1.3 billion, increasing 17% from the same quarter last year.
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
That said, let's delve into the average estimates of some Roku metrics that Wall Street analysts commonly model and monitor.
It is projected by analysts that the 'Net Revenue- Platform' will reach $1.17 billion. The estimate suggests a change of +20.3% year over year.
The consensus among analysts is that 'Net Revenue- Devices' will reach $125.46 million. The estimate points to a change of -7.5% from the year-ago quarter.
Analysts expect 'Streaming Hours' to come in at 39.72 billion. The estimate compares to the year-ago value of 35.40 billion.
The collective assessment of analysts points to an estimated 'Gross Profit- Platform' of $606.80 million. Compared to the present estimate, the company reported $497.70 million in the same quarter last year.
View all Key Company Metrics for Roku here>>>
Shares of Roku have experienced a change of +1.8% in the past month compared to the +0.2% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), ROKU is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Roku (ROKU - Free Report) Roku is the leading TV streaming platform provider in the United States, Canada and Mexico based on hours streamed.
ROKU is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. ROKU has a Growth Style Score of A, forecasting year-over-year earnings growth of 308.5% for the current fiscal year.
For fiscal 2026, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.00 to $2.41 per share. ROKU boasts an average earnings surprise of +107.3%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, ROKU should be on investors' short list.
Key Takeaways Roku raised adjusted EBITDA guidance after Platform revenues grew 28% year over year in Q1 2026.NFLX expects ad revenues to roughly double in 2026 while maintaining full-year revenue guidance.Roku outpaced NFLX in year-to-date stock performance, with a lower forward price-to-sales multiple. Netflix (NFLX - Free Report) and Roku (ROKU - Free Report) sit on opposite ends of streaming, yet chase the same ad dollar. Netflix has built an ad tier and live events, while Roku, the top U.S. platform by hours, monetizes viewing via its Home Screen and Roku Channel.
Both firms' recent results reaffirmed ad-supported streaming as a growth engine, leaning into live content for the second half of 2026. That overlap, plus diverging stock performances, makes this an opportune time to compare both names.
Let's delve deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.
The Case for NFLX StockNetflix's core strength remains its scale and content depth. Its second-quarter 2026 shareholder letter showed revenues climbing 13% year over year to $12.6 billion, with operating income up 11% to $4.2 billion, and view hours up 2% in the first half of the year despite competition from the Winter Olympics and World Cup. Netflix reiterated full-year 2026 revenue guidance of $50.7-$51.7 billion and an operating margin target of 31.5%, alongside an expectation that ad revenues will roughly double in 2026 to approximately $3 billion. Its 2026-2027 pipeline is stacked, including final seasons of The Witcher and Outer Banks, new Stranger Things spin-off content, Greta Gerwig's Narnia and an expanded live-sports and events calendar featuring the NFL, WWE, MLB and the 2027 FIFA Women's World Cup.
However, real challenges persist. Netflix disclosed that live programming, despite consuming more than 5% of content spend, drives only about 1% of total viewing hours, an inefficient trade-off versus its core library content. The company also walked away from acquiring Warner Bros. Discovery's studio and streaming assets, leaving questions about how it fills content gaps against deep-pocketed rivals. Management flagged that content amortization growth stayed elevated in the first half before easing, pressuring near-term margins, and free cash flow was dented by cash tax payments tied to the terminated Warner Bros. Discovery deal. With price hikes already implemented across its U.S. plans, Netflix has less room to lean on pricing, making subscriber and ad-tier growth essential to its guided trajectory into 2027.
The Zacks Consensus Estimate for 2026 earnings is pegged at $3.59 per share. This indicates a 41.9% increase from the previous year.
The Case for ROKU StockRoku's advertising and subscription-distribution engine is firing on multiple cylinders. Its first-quarter 2026 shareholder letter showed Platform revenues up 28% year over year to $1.13 billion, with a gross margin of 51.6%. Advertising revenues were up 27% and subscription revenues rose 30%, aided by Howdy's expansion onto Prime Video and Apple TV and Peacock joining Premium Subscriptions. Roku raised its full-year adjusted EBITDA guidance to $675 million, up from $635 million, and reaffirmed its target of $1 billion in free cash flow by 2028, if not sooner. The Roku Channel was the second-most-engaged app on its platform, and management highlighted record Premium Subscription sign-ups tied to Super Bowl LX and the Milan Cortina Winter Olympics.
Roku's forward pipeline reinforces this momentum. In April, it announced Roku Curate, a new advertising data product built with premium partners including Best Buy and Instacart, and it also struck a partnership bringing CW Network programming to The Roku Channel next-day starting in fall 2026, adding over 800 hours of library content, plus new WWE NXT streams. Roku has added dozens of free channels in 2026, including World Cup coverage, and launched a fresh brand campaign in July to deepen engagement with its Roku City ecosystem. Headwinds still remain: Devices revenues face pricing pressure from tightening memory supply and higher component costs, and Roku still trails Netflix in absolute scale. But with diversified monetization across advertising, subscriptions and hardware distribution, and expanding OEM device partnerships, Roku's overall growth algorithm looks broader-based and less dependent on any single content bet.
The Zacks Consensus Estimate for 2026 earnings is pinned at $2.41 per share. The estimate indicates year-over-year growth of 308.47%
Valuation and Price Performance ComparisonBoth Roku and Netflix trade at premium valuations, but the extent of that premium differs. Roku trades at a forward 12-month price-to-sales ratio of 3.54X, while Netflix commands a steeper 5.51X multiple. Given Roku's broader-based, multi-pronged monetization engine spanning advertising, subscriptions and platform partnerships, its lower premium appears better justified than Netflix's richer multiple, which leans heavily on continued content-driven subscriber growth.
NFLX vs. ROKU: P/S F12M Ratio
Image Source: Zacks Investment Research
On price performance, shares of Roku have returned 32.6% over the year-to-date period, sharply outpacing Netflix shares, which have declined 22.8% over the same stretch, underscoring the market's diverging sentiment toward the two ad-supported streaming stocks right now.
NFLX Underperforms ROKU Year to Date
Image Source: Zacks Investment Research
ConclusionRoku's diversified platform economics, broader monetization across advertising, subscriptions and OEM partnerships, an expanding content pipeline through deals like CW Network and Howdy, raised EBITDA guidance, and a more reasonably justified valuation premium collectively give it an edge over Netflix right now. Netflix remains a fundamentally strong long-term streaming franchise, but its steeper valuation, softer free cash flow trajectory and heavier reliance on content-driven subscriber growth warrant caution in the near term. Investors would do well to track and hold Roku shares for further sustained upside, while patiently waiting for a more attractive entry point before adding meaningfully to Netflix. NFLX and ROKU carry a Zacks Rank #3 (Hold) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Mag 7 Earnings Preview: Did GOOGL's Results Raise Stakes? The market reaction to Alphabet's Q2 results has significantly raised the bar for its Magnificent Seven peers that are on deck to report results this week, namely Microsoft and Meta Platforms on Wednesday, July 29th, and Apple and Amazon on Thursday, July 30th.
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Forget AI Chips and Mag 7: Buy AI Infrastructure Stocks Now Investors aiming to buy into the artificial intelligence boom driving the economy and Wall Street for the foreseeable future might want to consider best-in-class, AI-boosted infrastructure stocks.
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Entropy Technologies LP increased its holdings in shares of Roku, Inc. (NASDAQ:ROKU – Free Report) by 56.3% during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 29,103 shares of the company’s stock after buying an additional 10,488 shares during the quarter. Entropy Technologies LP’s holdings in Roku were worth $2,754,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
Several other hedge funds also recently added to or reduced their stakes in the business. Healthcare of Ontario Pension Plan Trust Fund boosted its holdings in Roku by 25.7% in the first quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 42,000 shares of the company’s stock worth $3,974,000 after acquiring an additional 8,600 shares in the last quarter. Renaissance Technologies LLC increased its holdings in shares of Roku by 22.8% during the first quarter. Renaissance Technologies LLC now owns 1,565,100 shares of the company’s stock valued at $148,090,000 after acquiring an additional 290,200 shares in the last quarter. Compound Planning Inc. increased its holdings in shares of Roku by 29.3% during the first quarter. Compound Planning Inc. now owns 4,767 shares of the company’s stock valued at $451,000 after acquiring an additional 1,079 shares in the last quarter. Arrowstreet Capital Limited Partnership raised its position in shares of Roku by 229.5% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,038,347 shares of the company’s stock valued at $192,868,000 after purchasing an additional 1,419,772 shares during the last quarter. Finally, Inceptionr LLC purchased a new position in shares of Roku in the 1st quarter valued at approximately $577,000. 86.30% of the stock is owned by institutional investors and hedge funds.
Wall Street Analyst Weigh In Several research firms have weighed in on ROKU. Wells Fargo & Company boosted their target price on shares of Roku from $137.00 to $167.00 and gave the stock an “overweight” rating in a research report on Friday, May 1st. Rosenblatt Securities raised their price target on shares of Roku from $150.00 to $160.00 and gave the stock a “buy” rating in a report on Tuesday, June 16th. Seaport Research Partners set a $155.00 price target on shares of Roku in a report on Tuesday, June 16th. Citizens Jmp downgraded shares of Roku from a “market outperform” rating to a “hold” rating in a research note on Tuesday, June 16th. Finally, JPMorgan Chase & Co. reissued a “neutral” rating and set a $160.00 price objective (up from $150.00) on shares of Roku in a report on Tuesday, June 16th. Ten investment analysts have rated the stock with a Buy rating and seventeen have assigned a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $155.12.
View Our Latest Stock Analysis on Roku
Insider Activity at Roku In other Roku news, Director Neil D. Hunt sold 2,000 shares of the company’s stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $140.65, for a total value of $281,300.00. Following the completion of the transaction, the director owned 9,629 shares in the company, valued at approximately $1,354,318.85. This represents a 17.20% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Mustafa Ozgen sold 10,194 shares of the stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $144.00, for a total transaction of $1,467,936.00. Following the sale, the insider directly owned 19,185 shares in the company, valued at approximately $2,762,640. The trade was a 34.70% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 236,499 shares of company stock valued at $30,582,963 in the last quarter. 13.45% of the stock is currently owned by insiders.
Roku Stock Performance Roku stock opened at $141.97 on Monday. The firm has a market cap of $20.93 billion, a PE ratio of 106.75 and a beta of 2.01. Roku, Inc. has a 12 month low of $78.53 and a 12 month high of $148.88. The stock’s 50 day simple moving average is $134.40 and its two-hundred day simple moving average is $113.70.
Roku (NASDAQ:ROKU – Get Free Report) last posted its earnings results on Thursday, April 30th. The company reported $0.57 earnings per share for the quarter, beating the consensus estimate of $0.34 by $0.23. Roku had a net margin of 4.06% and a return on equity of 7.64%. The firm had revenue of $1.25 billion during the quarter, compared to analyst estimates of $1.20 billion. During the same period in the previous year, the firm earned ($0.19) EPS. The business’s quarterly revenue was up 22.4% on a year-over-year basis. On average, equities research analysts forecast that Roku, Inc. will post 2.41 EPS for the current year.
Key Stories Impacting Roku Here are the key news stories impacting Roku this week:
Positive Sentiment: Analysts lifted Roku’s estimated fair value to about $158.41 from $151.68, with several firms now framing the stock around a potential $160 takeover value after Fox’s acquisition announcement. Roku (ROKU) Stock Sees Modest Fair Value Lift After Fox Deal Recast Analyst Views Positive Sentiment: Commentary around Fox’s acquisition says the deal could be a win for creators and reinforces the strategic value of Roku as a key connected-TV distribution platform. Why Fox’s Acquisition of Roku Is a Win for Creators | Analysis Positive Sentiment: Additional bullish media coverage argues Roku benefits from broader media consolidation trends, with investors increasingly valuing digital distribution gateways like Roku over content owners alone. The Netflix-Lionsgate Rumor Exposed a Bigger Shift in Media M&A (ROKU) Neutral Sentiment: Roku said it will report second-quarter 2026 results on August 6, but it will not host an earnings call or provide outlook because of the pending Fox transaction. Roku to Announce Second Quarter 2026 Financial Results on August 6 Neutral Sentiment: Several articles focused on Roku features, campaigns, and streaming content, which may help brand visibility but are unlikely to materially move the stock on their own. 4 Roku secret menus everyone should be using Negative Sentiment: Some valuation-focused analysis suggests the stock may already be near fair value after its recent run, with concerns that growth expectations from connected-TV advertising may be largely priced in. Roku (ROKU) As Connected TV Ad Growth Narrative Tests Whether The Stock Is Fully Valued About Roku (Free Report)
Roku, Inc (NASDAQ: ROKU) is a technology company that develops and operates a proprietary streaming platform designed to deliver entertainment content to consumers via internet-connected devices and smart televisions. Since its inception in 2002 in California, Roku has focused on simplifying access to streaming services for viewers worldwide. The company’s platform enables users to discover, access and manage a wide array of over-the-top content from major streaming services, free ad-supported channels and niche providers.
At the core of Roku’s product lineup are a range of streaming players and sticks, which connect to televisions via HDMI and deliver the Roku OS experience.
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Bank of Nova Scotia increased its stake in Roku, Inc. (NASDAQ:ROKU – Free Report) by 43.2% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 151,178 shares of the company’s stock after purchasing an additional 45,610 shares during the period. Bank of Nova Scotia owned 0.10% of Roku worth $14,304,000 as of its most recent SEC filing.
Other institutional investors have also recently bought and sold shares of the company. Raleigh Capital Management Inc. grew its position in shares of Roku by 6.5% during the 1st quarter. Raleigh Capital Management Inc. now owns 1,522 shares of the company’s stock worth $144,000 after buying an additional 93 shares during the period. Apollon Wealth Management LLC boosted its position in Roku by 1.5% during the 4th quarter. Apollon Wealth Management LLC now owns 6,450 shares of the company’s stock worth $700,000 after acquiring an additional 96 shares during the last quarter. Quantum Portfolio Management LLC grew its position in Roku by 2.6% in the first quarter. Quantum Portfolio Management LLC now owns 4,135 shares of the company’s stock valued at $391,000 after purchasing an additional 105 shares in the last quarter. HB Wealth Management LLC grew its holdings in shares of Roku by 3.7% in the 1st quarter. HB Wealth Management LLC now owns 3,447 shares of the company’s stock valued at $326,000 after acquiring an additional 122 shares in the last quarter. Finally, Quarry LP increased its position in shares of Roku by 21.7% during the 4th quarter. Quarry LP now owns 689 shares of the company’s stock worth $75,000 after purchasing an additional 123 shares during the last quarter. Institutional investors and hedge funds own 86.30% of the company’s stock.
Analysts Set New Price Targets A number of equities research analysts have recently issued reports on ROKU shares. Fox Advisors set a $157.00 target price on shares of Roku in a report on Friday, July 17th. William Blair downgraded shares of Roku from an “outperform” rating to a “market perform” rating in a research note on Monday, June 15th. Wolfe Research cut Roku from an “outperform” rating to a “peer perform” rating in a report on Tuesday, June 16th. Needham & Company LLC boosted their target price on shares of Roku from $140.00 to $170.00 and gave the company a “buy” rating in a research report on Monday, June 15th. Finally, Guggenheim raised their target price on shares of Roku from $140.00 to $145.00 and gave the company a “buy” rating in a research report on Tuesday, June 9th. Ten investment analysts have rated the stock with a Buy rating and seventeen have given a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $155.12.
Get Our Latest Research Report on ROKU
Insider Transactions at Roku In other news, insider Charles Collier sold 20,538 shares of the business’s stock in a transaction dated Monday, July 6th. The shares were sold at an average price of $142.51, for a total transaction of $2,926,870.38. Following the completion of the sale, the insider directly owned 15,200 shares of the company’s stock, valued at $2,166,152. The trade was a 57.47% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Neil D. Hunt sold 2,000 shares of the stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $140.65, for a total value of $281,300.00. Following the completion of the sale, the director directly owned 9,629 shares of the company’s stock, valued at approximately $1,354,318.85. This trade represents a 17.20% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 236,499 shares of company stock valued at $30,582,963. Company insiders own 13.45% of the company’s stock.
Roku Price Performance Shares of NASDAQ:ROKU opened at $141.97 on Friday. The company has a market capitalization of $20.93 billion, a price-to-earnings ratio of 106.75 and a beta of 2.01. Roku, Inc. has a 1 year low of $78.53 and a 1 year high of $148.88. The business’s 50-day moving average is $134.40 and its 200-day moving average is $113.71.
Roku (NASDAQ:ROKU – Get Free Report) last released its quarterly earnings data on Thursday, April 30th. The company reported $0.57 earnings per share for the quarter, beating the consensus estimate of $0.34 by $0.23. The company had revenue of $1.25 billion during the quarter, compared to analyst estimates of $1.20 billion. Roku had a net margin of 4.06% and a return on equity of 7.64%. Roku’s revenue for the quarter was up 22.4% compared to the same quarter last year. During the same quarter in the previous year, the business posted ($0.19) EPS. Analysts anticipate that Roku, Inc. will post 2.41 EPS for the current year.
Key Roku News Here are the key news stories impacting Roku this week:
Positive Sentiment: Analysts lifted Roku’s estimated fair value to about $158.41 from $151.68, with several firms now framing the stock around a potential $160 takeover value after Fox’s acquisition announcement. Roku (ROKU) Stock Sees Modest Fair Value Lift After Fox Deal Recast Analyst Views Positive Sentiment: Commentary around Fox’s acquisition says the deal could be a win for creators and reinforces the strategic value of Roku as a key connected-TV distribution platform. Why Fox’s Acquisition of Roku Is a Win for Creators | Analysis Positive Sentiment: Additional bullish media coverage argues Roku benefits from broader media consolidation trends, with investors increasingly valuing digital distribution gateways like Roku over content owners alone. The Netflix-Lionsgate Rumor Exposed a Bigger Shift in Media M&A (ROKU) Neutral Sentiment: Roku said it will report second-quarter 2026 results on August 6, but it will not host an earnings call or provide outlook because of the pending Fox transaction. Roku to Announce Second Quarter 2026 Financial Results on August 6 Neutral Sentiment: Several articles focused on Roku features, campaigns, and streaming content, which may help brand visibility but are unlikely to materially move the stock on their own. 4 Roku secret menus everyone should be using Negative Sentiment: Some valuation-focused analysis suggests the stock may already be near fair value after its recent run, with concerns that growth expectations from connected-TV advertising may be largely priced in. Roku (ROKU) As Connected TV Ad Growth Narrative Tests Whether The Stock Is Fully Valued About Roku (Free Report)
Roku, Inc (NASDAQ: ROKU) is a technology company that develops and operates a proprietary streaming platform designed to deliver entertainment content to consumers via internet-connected devices and smart televisions. Since its inception in 2002 in California, Roku has focused on simplifying access to streaming services for viewers worldwide. The company’s platform enables users to discover, access and manage a wide array of over-the-top content from major streaming services, free ad-supported channels and niche providers.
At the core of Roku’s product lineup are a range of streaming players and sticks, which connect to televisions via HDMI and deliver the Roku OS experience.
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Bank of New York Mellon Corp lowered its holdings in shares of Roku, Inc. (NASDAQ:ROKU – Free Report) by 11.0% during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 388,680 shares of the company’s stock after selling 47,984 shares during the quarter. Bank of New York Mellon Corp owned 0.26% of Roku worth $36,777,000 at the end of the most recent quarter.
Several other institutional investors have also recently bought and sold shares of the company. Blue Trust Inc. grew its position in Roku by 680.0% during the fourth quarter. Blue Trust Inc. now owns 234 shares of the company’s stock worth $25,000 after buying an additional 204 shares in the last quarter. Bayban lifted its stake in Roku by 1,300.0% in the 1st quarter. Bayban now owns 280 shares of the company’s stock valued at $26,000 after purchasing an additional 260 shares during the last quarter. WPG Advisers LLC bought a new stake in Roku during the 4th quarter worth $31,000. Safe Harbor Fiduciary LLC acquired a new position in shares of Roku in the fourth quarter valued at approximately $31,000. Finally, Osbon Capital Management LLC acquired a new stake in shares of Roku in the fourth quarter valued at about $45,000. Institutional investors own 86.30% of the company’s stock.
Insider Buying and Selling In other Roku news, CFO Dan Jedda sold 7,000 shares of the firm’s stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $122.56, for a total transaction of $857,920.00. Following the sale, the chief financial officer directly owned 71,115 shares of the company’s stock, valued at $8,715,854.40. This trade represents a 8.96% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Charles Collier sold 20,538 shares of the business’s stock in a transaction on Monday, May 4th. The stock was sold at an average price of $124.23, for a total transaction of $2,551,435.74. Following the completion of the transaction, the insider directly owned 7,700 shares in the company, valued at $956,571. This trade represents a 72.73% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 236,499 shares of company stock worth $30,582,963 in the last three months. Corporate insiders own 13.45% of the company’s stock.
Wall Street Analyst Weigh In Several equities analysts have issued reports on ROKU shares. Fox Advisors set a $157.00 price target on Roku in a research note on Friday, July 17th. William Blair downgraded shares of Roku from an “outperform” rating to a “market perform” rating in a research report on Monday, June 15th. Guggenheim increased their price target on shares of Roku from $140.00 to $145.00 and gave the company a “buy” rating in a research report on Tuesday, June 9th. Oppenheimer downgraded shares of Roku from an “outperform” rating to a “market perform” rating in a report on Monday, June 15th. Finally, Jefferies Financial Group downgraded Roku from a “buy” rating to a “hold” rating and set a $160.00 target price for the company. in a research note on Monday, June 15th. Ten equities research analysts have rated the stock with a Buy rating and seventeen have assigned a Hold rating to the company. According to data from MarketBeat.com, Roku has a consensus rating of “Hold” and an average price target of $155.12.
View Our Latest Research Report on Roku
Trending Headlines about Roku Here are the key news stories impacting Roku this week:
Positive Sentiment: Analysts lifted Roku’s estimated fair value to about $158.41 from $151.68, with several firms now framing the stock around a potential $160 takeover value after Fox’s acquisition announcement. Roku (ROKU) Stock Sees Modest Fair Value Lift After Fox Deal Recast Analyst Views Positive Sentiment: Commentary around Fox’s acquisition says the deal could be a win for creators and reinforces the strategic value of Roku as a key connected-TV distribution platform. Why Fox’s Acquisition of Roku Is a Win for Creators | Analysis Positive Sentiment: Additional bullish media coverage argues Roku benefits from broader media consolidation trends, with investors increasingly valuing digital distribution gateways like Roku over content owners alone. The Netflix-Lionsgate Rumor Exposed a Bigger Shift in Media M&A (ROKU) Neutral Sentiment: Roku said it will report second-quarter 2026 results on August 6, but it will not host an earnings call or provide outlook because of the pending Fox transaction. Roku to Announce Second Quarter 2026 Financial Results on August 6 Neutral Sentiment: Several articles focused on Roku features, campaigns, and streaming content, which may help brand visibility but are unlikely to materially move the stock on their own. 4 Roku secret menus everyone should be using Negative Sentiment: Some valuation-focused analysis suggests the stock may already be near fair value after its recent run, with concerns that growth expectations from connected-TV advertising may be largely priced in. Roku (ROKU) As Connected TV Ad Growth Narrative Tests Whether The Stock Is Fully Valued Roku Stock Performance Shares of ROKU opened at $141.97 on Friday. The firm’s 50-day simple moving average is $134.40 and its two-hundred day simple moving average is $113.71. Roku, Inc. has a fifty-two week low of $78.53 and a fifty-two week high of $148.88. The stock has a market cap of $20.93 billion, a PE ratio of 106.75 and a beta of 2.01.
Roku (NASDAQ:ROKU – Get Free Report) last issued its earnings results on Thursday, April 30th. The company reported $0.57 EPS for the quarter, beating the consensus estimate of $0.34 by $0.23. Roku had a return on equity of 7.64% and a net margin of 4.06%.The business had revenue of $1.25 billion for the quarter, compared to the consensus estimate of $1.20 billion. During the same period last year, the business posted ($0.19) EPS. The company’s revenue was up 22.4% compared to the same quarter last year. Equities research analysts predict that Roku, Inc. will post 2.41 EPS for the current year.
Roku Profile (Free Report)
Roku, Inc (NASDAQ: ROKU) is a technology company that develops and operates a proprietary streaming platform designed to deliver entertainment content to consumers via internet-connected devices and smart televisions. Since its inception in 2002 in California, Roku has focused on simplifying access to streaming services for viewers worldwide. The company’s platform enables users to discover, access and manage a wide array of over-the-top content from major streaming services, free ad-supported channels and niche providers.
At the core of Roku’s product lineup are a range of streaming players and sticks, which connect to televisions via HDMI and deliver the Roku OS experience.
See Also Five stocks we like better than Roku Telecom Earnings Reveal a Sector That Finally Looks Healthier Defense Earnings Show Readiness Now and Modernization Ahead Why Palantir Investors Aren’t Panicking While the Rest of AI Sells Off MarketBeat Week in Review – 07/20- 07/24 Want to see what other hedge funds are holding ROKU? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Roku, Inc. (NASDAQ:ROKU – Free Report).
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SAN JOSE, Calif.--(BUSINESS WIRE)--Today, Roku, Inc. (Nasdaq: ROKU) announced it will release second quarter 2026 financial results after market close on Thursday, August 6.On June 15, Fox Corporation (Nasdaq: FOXA, FOX) and Roku announced a definitive agreement under which FOX will acquire Roku. In light of the pending transaction, Roku will not host an earnings call and will not provide financial outlook.About Roku, Inc.Roku pioneered streaming on TV. Today, it is the #1 TV streaming platform.
Netflix (NASDAQ:NFLX | NFLX Price Prediction) and Roku (NASDAQ:ROKU) just delivered post-earnings snapshots that could not look more different. Netflix posted its Q2 report on July 16, leaning on content, ads, and the largest buyback quarter in its history. Roku’s Q1, filed April 30, showed a platform business finally translating scale into consistent profits.
Big Content Wins Meet Ad Tech Roars Netflix delivered EPS of $0.80 on revenue of $12.559 billion, growing 13.37% YoY. Operating margin held at 33.4%, doing the heavy lifting. Titles like Apex (131M views) and Swapped (137M views) kept engagement steady while price hikes in the US, Mexico, and Spain landed without much pushback.
Roku’s quarter was louder in percentage terms. Platform revenue climbed 28% YoY to $1.13 billion, with Advertising up 27% and Subscriptions up 30%. CEO Anthony Wood told investors, “We delivered an outstanding first quarter.” Devices slipped 16%, a reminder that the hardware business still runs at a loss.
One Owns the Screen, the Other Owns the Feed Lens Netflix Roku Core Bet Content plus live sports Programmatic ads and SMBs Growth Lever Ad tier doubling to ~$3B Platform toward ~$5B Capital Return $27.1B buyback remaining $400M program Key Risk $1B debt maturing 2026 Memory chip supply squeeze Netflix is chasing time on screen with an expanded NFL package including Thanksgiving Eve and Christmas Gameday, plus creator deals with Ms. Rachel and Mark Rober. Roku is chasing the dollars flowing through its pipes, integrating with DV360, Amazon DSP, and The Trade Desk. Advertiser count on Roku Ads Manager more than doubled YoY. Two very different revenue engines.
The Next Test Sits in Very Different Places For Netflix, I want to see ad revenue actually reach that $3.0 billion target while free cash flow rebounds from Q2’s $1.525 billion figure. Reddit chatter has soured alongside a 26.91% YTD drop, with a thread called “Netflix’s Growth Engine Is Stalling” gaining traction. For Roku, the tell will be Q2 earnings on July 30. Polymarket traders put the odds of a beat at 87%, though I take small-volume markets with a grain of salt.
Why I’d Split the Ticket Personally, I lean Netflix for stability. The sell-off dragged shares to $68.53, and a P/E near 21 feels reasonable for a business guiding to roughly $12.5 billion in free cash flow. For investors researching more torque, Roku offers a different profile. Platform economics are compounding, and reaching $1 billion of Free Cash Flow by 2028 would reprice the shares meaningfully. I would hesitate on Roku if memory chip costs pressure device margins harder than expected. Together, the pair covers the defensive and growth ends of streaming.
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California Public Employees Retirement System increased its holdings in shares of Roku, Inc. (NASDAQ:ROKU – Free Report) by 14.8% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 260,774 shares of the company’s stock after acquiring an additional 33,593 shares during the quarter. California Public Employees Retirement System owned approximately 0.18% of Roku worth $24,674,000 as of its most recent SEC filing.
Several other hedge funds and other institutional investors have also bought and sold shares of ROKU. Empowered Funds LLC grew its stake in Roku by 18.6% in the 1st quarter. Empowered Funds LLC now owns 3,291 shares of the company’s stock valued at $232,000 after purchasing an additional 515 shares during the period. Focus Partners Wealth bought a new stake in shares of Roku during the 1st quarter worth $229,000. EverSource Wealth Advisors LLC raised its stake in shares of Roku by 145.4% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,394 shares of the company’s stock worth $123,000 after purchasing an additional 826 shares during the period. First Trust Advisors LP boosted its holdings in shares of Roku by 231.0% in the 2nd quarter. First Trust Advisors LP now owns 70,786 shares of the company’s stock worth $6,221,000 after buying an additional 49,399 shares during the last quarter. Finally, Brown Advisory Inc. purchased a new position in shares of Roku in the 2nd quarter worth about $326,000. Hedge funds and other institutional investors own 86.30% of the company’s stock.
Insider Transactions at Roku In related news, insider Charles Collier sold 20,538 shares of the stock in a transaction on Monday, May 4th. The stock was sold at an average price of $124.23, for a total value of $2,551,435.74. Following the sale, the insider owned 7,700 shares in the company, valued at approximately $956,571. This trade represents a 72.73% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Mustafa Ozgen sold 10,194 shares of Roku stock in a transaction on Friday, June 12th. The shares were sold at an average price of $144.00, for a total value of $1,467,936.00. Following the sale, the insider directly owned 19,185 shares of the company’s stock, valued at $2,762,640. This represents a 34.70% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 236,499 shares of company stock worth $30,582,963. 13.45% of the stock is owned by corporate insiders.
Analyst Upgrades and Downgrades Several equities analysts recently weighed in on the stock. Jefferies Financial Group lowered shares of Roku from a “buy” rating to a “hold” rating and set a $160.00 price target for the company. in a research report on Monday, June 15th. Citizens Jmp cut shares of Roku from a “market outperform” rating to a “hold” rating in a research note on Tuesday, June 16th. Susquehanna downgraded shares of Roku from a “positive” rating to a “neutral” rating and set a $160.00 target price for the company. in a research report on Tuesday, June 16th. Robert W. Baird restated a “neutral” rating and set a $160.00 price target on shares of Roku in a research note on Monday, June 15th. Finally, William Blair cut shares of Roku from an “outperform” rating to a “market perform” rating in a report on Monday, June 15th. Ten research analysts have rated the stock with a Buy rating and seventeen have assigned a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $155.12.
Read Our Latest Research Report on ROKU
Roku Stock Performance NASDAQ:ROKU opened at $143.08 on Thursday. The business’s fifty day moving average is $133.72 and its 200 day moving average is $113.28. The firm has a market cap of $21.09 billion, a price-to-earnings ratio of 107.58 and a beta of 2.01. Roku, Inc. has a 52-week low of $78.53 and a 52-week high of $148.88.
Roku (NASDAQ:ROKU – Get Free Report) last announced its quarterly earnings results on Thursday, April 30th. The company reported $0.57 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.34 by $0.23. The firm had revenue of $1.25 billion for the quarter, compared to the consensus estimate of $1.20 billion. Roku had a net margin of 4.06% and a return on equity of 7.64%. The company’s revenue for the quarter was up 22.4% on a year-over-year basis. During the same period in the prior year, the firm posted ($0.19) earnings per share. Equities analysts predict that Roku, Inc. will post 2.41 EPS for the current fiscal year.
Roku Company Profile (Free Report)
Roku, Inc (NASDAQ: ROKU) is a technology company that develops and operates a proprietary streaming platform designed to deliver entertainment content to consumers via internet-connected devices and smart televisions. Since its inception in 2002 in California, Roku has focused on simplifying access to streaming services for viewers worldwide. The company’s platform enables users to discover, access and manage a wide array of over-the-top content from major streaming services, free ad-supported channels and niche providers.
At the core of Roku’s product lineup are a range of streaming players and sticks, which connect to televisions via HDMI and deliver the Roku OS experience.
See Also Five stocks we like better than Roku Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Small Caps Are Crushing the S&P 500—3 Stocks Still Worth Buying Moog Is More Than a Missile Maker, and Wall Street Is Noticing A Boring Dividend Growth Strategy Becomes a Solid Defensive Play Want to see what other hedge funds are holding ROKU? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Roku, Inc. (NASDAQ:ROKU – Free Report).
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Amova Asset Management Americas Inc. lessened its stake in Roku, Inc. (NASDAQ:ROKU – Free Report) by 37.1% in the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 1,848,889 shares of the company’s stock after selling 1,092,615 shares during the quarter. Roku comprises 2.5% of Amova Asset Management Americas Inc.’s investment portfolio, making the stock its 11th biggest position. Amova Asset Management Americas Inc. owned 1.25% of Roku worth $174,923,000 as of its most recent filing with the Securities & Exchange Commission.
Several other institutional investors and hedge funds have also bought and sold shares of the company. Jefferies Financial Group Inc. acquired a new position in shares of Roku during the 4th quarter valued at $1,345,000. Moran Wealth Management LLC acquired a new stake in Roku in the first quarter worth $2,990,000. MH & Associates Securities Management Corp ADV bought a new stake in Roku in the fourth quarter valued at $2,398,000. Katamaran Capital LLP increased its stake in Roku by 90.8% in the first quarter. Katamaran Capital LLP now owns 52,548 shares of the company’s stock valued at $4,972,000 after purchasing an additional 25,002 shares in the last quarter. Finally, Maxi Investments CY Ltd acquired a new position in shares of Roku during the fourth quarter valued at about $1,953,000. Institutional investors own 86.30% of the company’s stock.
Roku Stock Down 0.2% Shares of NASDAQ:ROKU opened at $144.13 on Tuesday. The stock has a market cap of $21.25 billion, a price-to-earnings ratio of 108.37 and a beta of 2.01. Roku, Inc. has a 12-month low of $78.53 and a 12-month high of $148.88. The business’s 50 day moving average is $133.04 and its 200 day moving average is $112.78.
Roku (NASDAQ:ROKU – Get Free Report) last announced its quarterly earnings results on Thursday, April 30th. The company reported $0.57 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.34 by $0.23. The business had revenue of $1.25 billion during the quarter, compared to the consensus estimate of $1.20 billion. Roku had a return on equity of 7.64% and a net margin of 4.06%.Roku’s revenue was up 22.4% compared to the same quarter last year. During the same quarter in the prior year, the company posted ($0.19) earnings per share. As a group, equities research analysts expect that Roku, Inc. will post 2.41 earnings per share for the current year.
Analyst Upgrades and Downgrades A number of research firms have recently issued reports on ROKU. Citigroup increased their price objective on shares of Roku from $120.00 to $157.00 and gave the stock a “neutral” rating in a research report on Friday. Susquehanna downgraded Roku from a “positive” rating to a “neutral” rating and set a $160.00 price target on the stock. in a research note on Tuesday, June 16th. Zacks Research lowered Roku from a “strong-buy” rating to a “hold” rating in a report on Tuesday, April 14th. Morgan Stanley raised their price objective on Roku from $150.00 to $170.00 and gave the company an “overweight” rating in a research note on Thursday, June 4th. Finally, UBS Group set a $160.00 price objective on Roku in a report on Monday, June 15th. Ten research analysts have rated the stock with a Buy rating and seventeen have given a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $155.12.
Get Our Latest Stock Analysis on ROKU
Insider Activity at Roku In related news, insider Charles Collier sold 20,538 shares of the business’s stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $124.23, for a total transaction of $2,551,435.74. Following the transaction, the insider directly owned 7,700 shares in the company, valued at approximately $956,571. The trade was a 72.73% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Gilbert Fuchsberg sold 9,593 shares of the business’s stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $125.52, for a total value of $1,204,113.36. Following the completion of the transaction, the insider owned 50,863 shares in the company, valued at $6,384,323.76. The trade was a 15.87% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 236,499 shares of company stock valued at $30,582,963 over the last three months. Insiders own 13.45% of the company’s stock.
Roku Profile (Free Report)
Roku, Inc (NASDAQ: ROKU) is a technology company that develops and operates a proprietary streaming platform designed to deliver entertainment content to consumers via internet-connected devices and smart televisions. Since its inception in 2002 in California, Roku has focused on simplifying access to streaming services for viewers worldwide. The company’s platform enables users to discover, access and manage a wide array of over-the-top content from major streaming services, free ad-supported channels and niche providers.
At the core of Roku’s product lineup are a range of streaming players and sticks, which connect to televisions via HDMI and deliver the Roku OS experience.
Further Reading Five stocks we like better than Roku The Ugliest Stocks in the Market Just Got a Very Expensive Vote of Confidence Is Domino’s Stock Serving Up a Buying Opportunity? A $1T Black Hole: SpaceX Eyes Pentagon AI to Break Free Why Gold Miners Could Be the Market’s Biggest Comeback Story Want to see what other hedge funds are holding ROKU? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Roku, Inc. (NASDAQ:ROKU – Free Report).
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Dan Jedda, CFO & COO of Roku, Inc. (ROKU +0.48%), sold shares of Class A Common Stock on July 15, 2026, as disclosed in a recent SEC Form 4 filing.
Transaction summaryMetricValueShares sold (direct)7,000Transaction value~$993,300Post-transaction shares (directly held)72,963Post-transaction value$10.46 millionTransaction value based on SEC Form 4 weighted average sale price ($141.90); post-transaction value based on July 15, 2026 market close ($143.32).
Key questionsHow was the transaction structured and what was its impact?
The sale of 7,000 shares was conducted under a Rule 10b5-1 trading plan, which allows insiders to schedule trades in advance to manage personal liquidity and equity exposure. This disposition reduced Dan Jedda's direct equity position by 9%, leaving him with 72,963 shares of Class A Common Stock held directly.What is the valuation context for the remaining equity stake?
The executive's remaining direct position is valued at $10.46 million based on the July 15, 2026 market close of $143.32. The sale occurred at $141.90 per share, following a 12-month period where shares of the company yielded a 61% total return as of the transaction date.What is the current operational and financial profile of Roku?
Roku operates a streaming television platform that reported 60.1 million active user accounts as of December 31, 2021, serving as a significant gateway for television content and sports. The company currently maintains a market capitalization of $21.3 billion and generated $5.0 billion in revenue and $201.5 million in net income over the trailing twelve months ending July 15, 2026.Company OverviewMetricValueShare Price (as of market close 2026-07-15)$143.32Market Capitalization$21.2 billionRevenue (TTM)$5.0 billionNet Income (TTM)$201.5 millionCompany SnapshotRoku operates a comprehensive streaming television platform that enables users to discover and access diverse content including films, television series, live broadcasts, news, and sports programming, generating revenue through platform advertising, subscription services, and player hardware sales.The company operates a dual-segment business model comprising its Platform segment, which monetizes user engagement through advertising and content partnerships, and its Player segment, which generates revenue from the sale of Roku-branded streaming devices.Roku serves a broad consumer market of television viewers seeking streaming entertainment solutions, as well as content providers, advertisers, and media companies seeking to reach cord-cutting audiences through its platform infrastructure.Roku, Inc. is a leading streaming television platform operator with a substantial market presence, commanding a $21.3 billion market capitalization and generating $5.0 billion in TTM revenue across its integrated platform and player segments. The company has established a competitive advantage through its expansive user base of millions of active accounts and its ability to aggregate diverse content offerings while providing targeted advertising solutions to media partners. Roku's strategic positioning in the secular shift toward streaming entertainment and away from traditional cable television provides a foundation for sustained growth in the evolving media consumption landscape.
What this transaction means for investorsJedda’s sale of Roku stock seems intriguing, given the upcoming buyout by Fox Corporation.
Admittedly, as a Rule 10b5-1 sale, it appears to be a planned sale designed to manage liquidity and equity exposure, so it bears no obvious relation to the state of the stock or the upcoming merger. Moreover, the fact that the sale amounted to 9% of his shares seems to support the assertion that he sold shares for personal reasons.
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144.52
Nonetheless, the sale could be a hedge for Jedda. Fox agreed to buy the entertainment stock for $160 per share, and the sale is expected to close in the first half of 2027. However, Jedda sold those shares at a weighted average price of $141.90 per share, an 11% discount to the buyout price.
The deal must go through regulatory approval, which can be an uncertain process. If the deal does not go through, Roku could fall back to the pre-announcement price, which was just below $120 per share. Thus, by sellling some shares, Jedda locks in some gains regardless of whether the merger actually occurs.
Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Roku. The Motley Fool has a disclosure policy.
Roku (ROKU - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this video streaming company have returned +2.8% over the past month versus the Zacks S&P 500 composite's +1.6% change. The Zacks Broadcast Radio and Television industry, to which Roku belongs, has lost 7.1% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Roku is expected to post earnings of $0.61 per share for the current quarter, representing a year-over-year change of +771.4%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.1%.
The consensus earnings estimate of $2.41 for the current fiscal year indicates a year-over-year change of +308.5%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $3.58 indicates a change of +48.6% from what Roku is expected to report a year ago. Over the past month, the estimate has changed -1.1%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Roku.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Roku, the consensus sales estimate for the current quarter of $1.3 billion indicates a year-over-year change of +17%. For the current and next fiscal years, $5.55 billion and $6.31 billion estimates indicate +17.2% and +13.6% changes, respectively.
Last Reported Results and Surprise HistoryRoku reported revenues of $1.25 billion in the last reported quarter, representing a year-over-year change of +22.4%. EPS of $0.57 for the same period compares with -$0.19 a year ago.
Compared to the Zacks Consensus Estimate of $1.2 billion, the reported revenues represent a surprise of +3.8%. The EPS surprise was +67.65%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Roku is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Roku. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
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Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Roku (ROKU - Free Report) Roku is the leading TV streaming platform provider in the United States, Canada and Mexico based on hours streamed.
ROKU is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Consumer Discretionary stock. ROKU has a Momentum Style Score of B, and shares are up 2.8% over the past four weeks.
One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.00 to $2.41 per share. ROKU boasts an average earnings surprise of +107.3%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, ROKU should be on investors' short list.
Roku (ROKU - Free Report) closed at $142.34 in the latest trading session, marking a +1.17% move from the prior day. This change outpaced the S&P 500's 0.79% loss on the day. Meanwhile, the Dow lost 0.26%, and the Nasdaq, a tech-heavy index, lost 1.55%.
The video streaming company's stock has dropped by 2.07% in the past month, falling short of the Consumer Discretionary sector's gain of 0.62% and the S&P 500's gain of 4.28%.
The upcoming earnings release of Roku will be of great interest to investors. The company is predicted to post an EPS of $0.61, indicating a 771.43% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $1.3 billion, indicating a 16.98% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.41 per share and revenue of $5.55 billion, indicating changes of +308.47% and +17.23%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Roku. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0% higher within the past month. At present, Roku boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Roku currently has a Forward P/E ratio of 58.35. For comparison, its industry has an average Forward P/E of 13.28, which means Roku is trading at a premium to the group.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 69, positioning it in the top 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Roku (ROKU - Free Report) Roku is the leading TV streaming platform provider in the United States, Canada and Mexico based on hours streamed.
ROKU is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. ROKU has a Growth Style Score of A, forecasting year-over-year earnings growth of 308.5% for the current fiscal year.
For fiscal 2026, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.00 to $2.41 per share. ROKU boasts an average earnings surprise of +107.3%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, ROKU should be on investors' short list.
Roku (ROKU - Free Report) closed the most recent trading day at $139.25, moving -1.39% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.28%. On the other hand, the Dow registered a loss of 1.09%, and the technology-centric Nasdaq increased by 0.2%.
Prior to today's trading, shares of the video streaming company had gained 16.79% outpaced the Consumer Discretionary sector's gain of 1.44% and the S&P 500's gain of 1.64%.
Market participants will be closely following the financial results of Roku in its upcoming release. On that day, Roku is projected to report earnings of $0.61 per share, which would represent year-over-year growth of 771.43%. Meanwhile, our latest consensus estimate is calling for revenue of $1.3 billion, up 16.98% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.41 per share and a revenue of $5.55 billion, indicating changes of +308.47% and +17.23%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Roku. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0% rise in the Zacks Consensus EPS estimate. Roku is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Roku is presently trading at a Forward P/E ratio of 58.57. This represents a premium compared to its industry average Forward P/E of 13.73.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 112, finds itself in the top 46% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Roku (ROKU - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this video streaming company have returned +13.4%, compared to the Zacks S&P 500 composite's -1.7% change. During this period, the Zacks Broadcast Radio and Television industry, which Roku falls in, has lost 6%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Roku is expected to post earnings of $0.61 per share for the current quarter, representing a year-over-year change of +771.4%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The consensus earnings estimate of $2.41 for the current fiscal year indicates a year-over-year change of +308.5%. This estimate has changed +0.2% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $3.61 indicates a change of +49.9% from what Roku is expected to report a year ago. Over the past month, the estimate has changed +2%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Roku is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Roku, the consensus sales estimate for the current quarter of $1.3 billion indicates a year-over-year change of +16.9%. For the current and next fiscal years, $5.55 billion and $6.31 billion estimates indicate +17.2% and +13.6% changes, respectively.
Last Reported Results and Surprise HistoryRoku reported revenues of $1.25 billion in the last reported quarter, representing a year-over-year change of +22.4%. EPS of $0.57 for the same period compares with -$0.19 a year ago.
Compared to the Zacks Consensus Estimate of $1.2 billion, the reported revenues represent a surprise of +3.8%. The EPS surprise was +67.65%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Roku is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Roku. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
