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, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Fiverr International Ltd. ("Fiverr" or the "Company") (NYSE: FVRR). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.

The investigation concerns whether Fiverr and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

[Click here for information about joining the class action]

On February 18, 2026, Fiverr reported its fourth quarter and full year 2025 financial results and issued its full-year 2026 outlook. Among other items, the Company disclosed that fourth quarter marketplace revenue declined 2.7% year-over-year to $71.5 million, and that annual active buyers declined 13.6% year-over-year to 3.1 million. In addition, Fiverr issued full-year 2026 revenue guidance of $380 million to $420 million, representing year-over-year growth of negative 12% to negative 3%. The Company further disclosed that its transformation plan would focus on high-value work while intentionally deprioritizing low-end transactions. 

On this news, Fiverr's stock price fell $1.03 per share, or 8.34%, to close at $11.32 per share on February 19, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising. Prior results do not guarantee similar outcomes. 

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

SOURCE Pomerantz LLP

, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Fiverr International Ltd. ("Fiverr" or the "Company") (NYSE: FVRR).  Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.

The investigation concerns whether Fiverr and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

[Click here for information about joining the class action]

On February 18, 2026, Fiverr reported its fourth quarter and full year 2025 financial results and issued its full-year 2026 outlook.  Among other items, the Company disclosed that fourth quarter marketplace revenue declined 2.7% year-over-year to $71.5 million, and that annual active buyers declined 13.6% year-over-year to 3.1 million.  In addition, Fiverr issued full-year 2026 revenue guidance of $380 million to $420 million, representing year-over-year growth of negative 12% to negative 3%.  The Company further disclosed that its transformation plan would focus on high-value work while intentionally deprioritizing low-end transactions. 

On this news, Fiverr's stock price fell $1.03 per share, or 8.34%, to close at $11.32 per share on February 19, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising. Prior results do not guarantee similar outcomes. 

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected] 
646-581-9980 ext. 7980

SOURCE Pomerantz LLP

NEW YORK, May 19, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Fiverr International Ltd. (“Fiverr” or the “Company”) (NYSE: FVRR). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.

The investigation concerns whether Fiverr and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

[Click here for information about joining the class action]

On February 18, 2026, Fiverr reported its fourth quarter and full year 2025 financial results and issued its full-year 2026 outlook.  Among other items, the Company disclosed that fourth quarter marketplace revenue declined 2.7% year-over-year to $71.5 million, and that annual active buyers declined 13.6% year-over-year to 3.1 million.  In addition, Fiverr issued full-year 2026 revenue guidance of $380 million to $420 million, representing year-over-year growth of negative 12% to negative 3%.  The Company further disclosed that its transformation plan would focus on high-value work while intentionally deprioritizing low-end transactions. 

On this news, Fiverr’s stock price fell $1.03 per share, or 8.34%, to close at $11.32 per share on February 19, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising. Prior results do not guarantee similar outcomes.

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

Quantum computing names have ripped higher on speculation about milestones that may sit years out, and retail money is chasing chart momentum at frothy multiples.

NEW YORK, June 09, 2026 (GLOBE NEWSWIRE) -- Demand for Claude Code specialists has surged 938% on Fiverr over the last six months, with businesses seeking freelancers who can use the AI coding tool to automate their workflows, build AI agents, and ship products faster, according to new data released today by Fiverr International Ltd. (NYSE: FVRR).

The 2026 edition of Fiverr's Business Trends Index — drawn from millions of searches across the platform from November 2025 to April 2026 — reveals the fastest-growing services shaping how businesses operate and how AI is changing the way we work.

Desire for AI tools like voice agents and vibe coding is a priority for businesses

Claude Code can execute multi-step coding tasks end-to-end without constant human input — writing, testing, and deploying autonomously rather than simply suggesting code for a developer to review. The learning curve is steep enough that hiring a specialist makes more sense than training up existing staff, and the demand for those freelancers is showing up across related tools that can search the web, update documents, or assist with productivity in business or everyday tasks: searches for n8n AI automation, which connects apps and AI models into automated workflows, increased (+125%), along with vibe coding (+61%), and AI voice agents (+49%).

“Freelancers are bridging the gap between businesses that experiment with AI and those that are meaningfully adopting it,” said Elliott Johnson, founder of EKB Labs and an AI consultant on Fiverr. “Anyone can spin up a prototype now, but there's a massive gap between that and something that actually holds up. Most businesses are finding out the hard way that closing that gap takes real expertise.”

Content creation, not technical infrastructure, is leading AI adoption

While AI is most commonly associated with backend efficiency, data analysis, and software development, Fiverr's data shows that businesses are currently adopting AI fastest on the front end in content production and customer-facing workflows. Demand for AI-related services is growing most in Video & Animation (+278%), outpacing growth in Programming & Tech (+94%), Digital Marketing (+62%), and Data (+3%) by a significant margin. The pattern suggests that for most businesses, the most immediate and tangible application of AI is not in backend systems, but in what their customers actually see.

"Businesses are facing an urgency to adopt AI, and our data shows that urgency is translating directly into demand for specialized talent," said Jinjin Qian, Chief Business Officer of Fiverr. "Tools like Claude Code have raised the ceiling on what any business can build, but most don't have the expertise in-house to get there. That's the gap freelancers are filling, and we're seeing it accelerate across every part of how businesses operate, from marketing to sales to operations."

Small and medium-sized businesses are increasingly turning to freelancers for help creating AI-generated videos and social media marketing content

The same appetite for AI-powered efficiency that's driving demand for developers and automation specialists is now reshaping how businesses approach content, social media, and customer engagement. Rises in searches for AI UGC video ads (+265%) and AI video ads (+63%) were matched with parallel demand for human editing talent, including video editing (+36%) and short-form video editing (+27%).

YouTube and Instagram outpace TikTok

When it comes to social media content creation, YouTube-related services show the strongest demand and growth. Searches for YouTube automation faceless channels (+239% in Digital Marketing and +230% in Video & Animation), YouTube thumbnails (+52%), and YouTube video promotion (+31%) continue to grow, signaling that success on the platform is increasingly about optimizing distribution and packaging, not just production.

Instagram continues to scale as a content engine (+147% in Digital Marketing; +149% in Graphics & Design; +57% for Reels editing), while TikTok grows at a slower pace (+26% in Digital Marketing; +17% in Video & Animation), suggesting that demand is currently scaling faster on platforms with more flexible content and monetization opportunities.

This analysis is based on global search data from Fiverr, comparing demand across two time periods: May-October 2025 and November 2025-April 2026. Trends were identified by analyzing percentage growth in search across multiple service categories, including Programming & Tech, Digital Marketing, Video & Animation, Graphics & Design, Data, and Writing & Translation.

About Fiverr
Fiverr’s mission is to transform the way the world creates and works together. We’re shaping the future of work with the world’s leading open platform, seamlessly connecting top talent and cutting-edge technology with businesses around the globe. From expert freelancers in over 750 skilled categories to best-in-class GenAI models and agents, Fiverr provides the most advanced and comprehensive talent and tools for digital services—helping businesses get mission-critical projects done fast and cost-effectively.

From small businesses to Fortune 500 companies, millions trust Fiverr for projects in software and AI development, digital marketing, finance, business consulting, video animation, music, architecture, and more.

Learn how to future-proof your business with exceptional talent and cutting-edge tools at fiverr.com. Follow us on LinkedIn, Instagram, TikTok, and Facebook.

Press Contacts
Jenny Chang
Madeleine Bendalin
[email protected]

Fiverr International (FVRR - Free Report) ended the recent trading session at $9.86, demonstrating a -2.09% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 1.75%. Meanwhile, the Dow gained 1.86%, and the Nasdaq, a tech-heavy index, added 2.54%.

Heading into today, shares of the online marketplace for freelance services had lost 5.8% over the past month, outpacing the Retail-Wholesale sector's loss of 7.51% and lagging the S&P 500's loss of 1.63%.

Analysts and investors alike will be keeping a close eye on the performance of Fiverr International in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.52, reflecting a 24.64% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $100.42 million, indicating a 7.58% decrease compared to the same quarter of the previous year.

FVRR's full-year Zacks Consensus Estimates are calling for earnings of $2.14 per share and revenue of $403.06 million. These results would represent year-over-year changes of -27.46% and -6.46%, respectively.

Any recent changes to analyst estimates for Fiverr International should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Fiverr International presently features a Zacks Rank of #5 (Strong Sell).

Looking at its valuation, Fiverr International is holding a Forward P/E ratio of 4.72. For comparison, its industry has an average Forward P/E of 16.22, which means Fiverr International is trading at a discount to the group.

The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 148, positioning it in the bottom 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow FVRR in the coming trading sessions, be sure to utilize Zacks.com.

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

The research service features 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, all of which will help you become a smarter, more confident investor.

It also includes access to the Zacks Style Scores.

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 ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out 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 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, 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.

#1 (Strong Buy) stocks have produced an unmatched +23.7% 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.

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.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee 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: Pinterest (PINS - Free Report) Pinterest was incorporated in Delaware in 2008 and is headquartered in San Francisco. The company provides a platform to show its users (called Pinners) visual recommendations (called Pins) based on their personal taste and interests. Users then save and organize these recommendations into collections (called Boards).

PINS is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Computer and Technology stock. PINS has a Momentum Style Score of A, and shares are up 5% over the past four weeks.

Eight analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.20 to $1.93 per share. PINS also boasts an average earnings surprise of +4.1%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, PINS should be on investors' short list.

New York, New York--(Newsfile Corp. - May 29, 2026) - Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Pinterest, Inc. (NYSE: PINS) and certain of its officers.

This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Pinterest securities between February 7, 2025 and February 12, 2026, both dates inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: bgandg.com/PINS.

Pinterest Case Details

The complaint alleges defendants made false and/or misleading statements and/or failed to disclose that:

Pinterest was experiencing and/or was likely to experience reduced revenues from its advertising partners; Pinterest overstated its ability to manage the impact of U.S. tariffs on the macroeconomic environment in which the Company operated, including the foreseeable impact on its advertising partners; the impact of the foregoing on Pinterest's advertising revenues was significant enough that Pinterest was facing and/or likely to face an imminent restructuring; and (4) as a result, Defendants' public statements were materially false and misleading at all times.What's Next for Pinterest Investors?

A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm's site: bgandg.com/PINS, or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Pinterest you have until May 29, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.

No Cost to Pinterest Investors

We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if we are successful.

Why Bronstein, Gewirtz & Grossman, LLC for Pinterest Securities Class Action?

Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com

"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.

Follow us for updates on LinkedIn, X, Facebook, or Instagram.

Attorney advertising.
Prior results do not guarantee similar outcomes.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/294934

Source: Bronstein, Gewirtz & Grossman, LLC

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When most people think about social media stocks, they immediately think of Meta Platforms, the owner of Facebook, Instagram, and WhatsApp. However, there is a smaller social media stock that recently delivered solid earnings and looks poised for a comeback.

Pinterest (PINS 6.00%) remains well below the all-time high it touched in 2021, and is down by more than 20% year to date. However, that price movement does not reflect the fundamental improvements that the image-focused platform is making in its business.

Image source: Getty Images.

Pinterest has been silently gaining momentum In Q1, Pinterest reached 631 million global monthly active users, an 11% year-over-year increase. That's a solid showing in its own right, but it was not a one-time blip. Pinterest has delivered double-digit percentage user growth for 10 consecutive quarters.

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It's harder to compare Pinterest's user base directly with those of Meta Platforms or Reddit, since those tech companies report daily active users instead of monthly active users. Pinterest is still growing in North America and Europe, but most of its growth is coming from other parts of the world.

The number of monthly active users from countries outside North America and Europe was up by 15% year over year. If Pinterest can continue to penetrate international markets, it can maintain high growth rates for an extended period of time. The company is targeting 14% to 16% year-over-year revenue growth in Q2, suggesting that its efforts are still bearing fruit.

Revenue growth is outpacing user gains Pinterest has delivered steady user growth, but the more impressive part of the long-term thesis is that its revenue growth rate regularly exceeds its user growth rate. For instance, its 11% increase in global monthly active users last quarter came with 18% revenue growth.

Average revenue per user grew across all regions, showing that Pinterest is succeeding at generating more revenue from every user while attracting more people to the platform. Management cited its AI-powered ad platform as the reason its revenue continues to trend upward.

Revenue growth also outpaced user gains in 2025. The company delivered 16% revenue growth in 2025, compared with a 12% increase in global monthly active users. It continues to deliver double-digit percentage revenue growth rates. Although the company was unprofitable in Q1 due to restructuring costs, it has a history of generating healthy margins.

For instance, in 2025, Pinterest generated $4.2 billion in revenue and $417 million in net income, resulting in a 10% net profit margin. Profitability should improve for the rest of the year as its restructuring costs are in the rear-view mirror and its AI-powered advertising platform continues to drive results.

Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms, Pinterest, and Reddit. The Motley Fool has a disclosure policy.

A month has gone by since the last earnings report for Pinterest (PINS - Free Report) . Shares have lost about 6.3% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Pinterest due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.

Pinterest Q1 Earnings Beat Estimates on Strong Revenue Growth

Pinterest reported first-quarter 2026 earnings of 27 cents per share, beating the Zacks Consensus Estimate of 22 cents by 22.73%. The bottom line increased from the year-ago quarter’s non-GAAP earnings of 23 cents per share.

Revenues of $1.01 billion rose 18% year over year and surpassed the consensus mark of $964 million by 8.47%. Strength in AI-driven ad performance and improving advertiser demand aided results. Global monthly active users (MAUs) increased 11% to 631 million, reflecting sustained platform engagement growth.

PINS Sees Strong User Growth and Engagement TrendsPinterest ended the quarter with 631 million global MAUs, up 11% year over year, marking continued double-digit expansion. Growth was broad-based across regions, with Rest of World MAUs rising 15%, Europe up 7% and the United States and Canada increasing 4%.

User engagement remained robust, supported by ongoing improvements in personalization and visual discovery. The company highlighted that more than 80 billion searches occur monthly on the platform, with roughly half tied to commercial intent, reinforcing Pinterest’s positioning as a discovery-led shopping platform.

Pinterest Revenue Growth Driven by Ads and AIPinterest generated revenues of $1.008 billion, up 18% year over year. Growth was driven primarily by improvements in conversion-focused advertising and continued momentum in retail and emerging verticals such as financial services.

Geographically, U.S. and Canada revenues rose 13% to $750 million, while Europe revenues increased 27% to $186 million. Rest of World revenues surged 59% to $72 million, highlighting strong international traction despite ongoing monetization gaps.

Ad impressions grew 24% year over year, although pricing declined 5%, reflecting mix shifts and prior-year comparisons. Improvements in AI-driven bidding and targeting partially offset pressure from large retail advertisers later in the quarter.

PINS Expands AI Capabilities and Ad PlatformPinterest continued to deepen its AI capabilities, which remain central to its growth strategy. The company’s proprietary models, including its Taste Graph and generative retrieval system, enhanced personalization and search relevance, driving higher engagement and advertiser performance.

Adoption of Pinterest Performance+, its AI-powered ad suite, gained traction, with approximately 30% of lower-funnel revenue now flowing through these campaigns. Advertisers using these tools reported improved return on ad spend and higher conversion rates, underscoring the platform’s growing effectiveness.

Additionally, the acquisition of tvScientific expanded Pinterest’s reach into connected TV advertising, enabling advertisers to leverage PINS’ audience data beyond its platform and unlocking incremental revenue opportunities.

Pinterest Margins Improve on Strong Revenue Flow-ThroughPinterest reported adjusted EBITDA of $207 million, up 20% year over year, with a margin of 20%, reflecting modest expansion from the prior year.

Cost of revenue increased 20% to $232 million, driven by higher infrastructure investments to support user growth and AI initiatives. Non-GAAP operating expenses rose 16% to $574 million, primarily due to increased spending in sales, marketing and research and development.

Despite higher expenses, stronger revenue flow-through and cost discipline supported profitability improvements during the quarter.

PINS Strengthens Cash Flow and Capital AllocationPinterest generated $328 million in operating cash flow and $312 million in free cash flow during the quarter.

The company ended the quarter with $1.3 billion in cash, cash equivalents and marketable securities, maintaining a solid liquidity position.

Pinterest also repurchased approximately $2 billion worth of shares year to date, reducing shares outstanding by about 16% compared with the prior quarter. The company has $2 billion remaining under its $3.5 billion authorization, reflecting confidence in its long-term growth prospects.

Pinterest Outlook Reflects Continued Growth MomentumFor the second quarter of 2026, Pinterest expects revenues between $1.133 billion and $1.153 billion, indicating 14-16% year-over-year growth.

Adjusted EBITDA is projected in the range of $256 million to $276 million. The company expects continued investments in AI, sales and marketing, and infrastructure to support long-term growth, while maintaining a full-year adjusted EBITDA margin target of around 29%.

Management remains focused on expanding monetization, improving measurement capabilities and scaling its global go-to-market strategy to better align revenue growth with strong user engagement trends.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates revision.

The consensus estimate has shifted 9.29% due to these changes.

VGM ScoresAt this time, Pinterest has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Charting a somewhat similar path, the stock was allocated a score of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Pinterest has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerPinterest belongs to the Zacks Internet - Software industry. Another stock from the same industry, Automatic Data Processing (ADP - Free Report) , has gained 9.8% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.

ADP reported revenues of $5.94 billion in the last reported quarter, representing a year-over-year change of +7%. EPS of $3.37 for the same period compares with $3.06 a year ago.

For the current quarter, ADP is expected to post earnings of $2.59 per share, indicating a change of +14.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.7% over the last 30 days.

ADP has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.

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$4 billion deal, the largest in Pinterest's history, deepens an over decade-long collaboration through 2031

Pinterest expands use of compute, cloud-native architecture, and Amazon custom silicon, including Graviton and Trainium, to power AI at scale

SAN FRANCISCO--(BUSINESS WIRE)--Pinterest, Inc. (NYSE: PINS) announced a major expansion of its collaboration with Amazon Web Services (AWS), an Amazon.com, Inc. company (NASDAQ: AMZN), its Preferred Cloud Services Provider, including a planned $4 billion commitment for cloud services through 2031. The agreement is the largest infrastructure commitment in Pinterest’s history and is expected to accelerate the company’s AI roadmap, provide a more responsive search and shopping experience, and further modernize the infrastructure powering Pinterest's global visual search discovery platform.

"Pinterest is heavily investing in AI to make discovery more personal, visual and actionable for the hundreds of millions of people who use our platform every month."

Share "Pinterest is heavily investing in AI to make discovery more personal, visual and actionable for the hundreds of millions of people who use our platform every month," said Matt Madrigal, Chief Technology Officer, Pinterest. "This expanded commitment with AWS gives us the compute flexibility, hardware optionality, and infrastructure efficiency to accelerate our AI vision for the next generation of visual discovery on Pinterest. This strategic partnership will help accelerate AI innovation at Pinterest, improving both our consumer experience and advertiser performance by advancing our proprietary models and our use of open-source models.”

A Partnership Built for Scale

Pinterest and AWS have worked together since 2010 to improve the reliability, efficiency and performance of Pinterest's core services, including jointly optimizing one of the largest-scale data lakes on AWS. This renewed agreement significantly deepens that long-standing relationship and is structured to support Pinterest's next phase of growth across AI model training, inference, and platform infrastructure.

"Pinterest is building some of the most advanced visual AI systems on AWS, powering discovery for more than 600 million users. As one of our longest-standing customers, we know what it takes to support that scale securely and efficiently," said Dave Brown, SVP, Compute & ML Services, AWS. "AWS compute and purpose-built silicon like Trainium and Graviton give Pinterest the price-performance to train and run AI models at massive scale across both training and inference. This commitment provides Pinterest the AI infrastructure to move faster and deliver new experiences to users sooner."

Scaling AI for Visual Discovery

Pinterest has long applied AI to visual discovery and personalization, and in recent years has accelerated this work with major advances in its recommendation systems and multimodal models. Powered by its proprietary Taste Graph, Pinterest helps users move from open inspiration to personalized, actionable results. The company has evolved from traditional embedding-based retrieval to transformer-based generative models, while continually adapting open-source AI and enhancing its proprietary vision models. Most recently, Pinterest launched Pinterest Assistant, bringing multi-turn conversational discovery to its visual search and discovery experience, powered by open-source vision-language models optimized for scale.

Hardware Optionality and Accelerated Compute

As part of the expanded AWS agreement, Pinterest plans to diversify its use of accelerated compute to support its growing AI needs while improving price performance – and turning to Amazon custom silicon to do it. This includes leveraging AWS Trainium to host and run large language models and vision-language models that power experiences like personalized visual search and AI-assisted discovery. In addition, Pinterest plans to expand its use of Graviton, which already powers roughly a third of the company’s compute infrastructure, to run more of the systems that support discovery for more than 600 million people every month. Together, these investments are expected to give Pinterest greater flexibility to match infrastructure to evolving AI needs.

Modernizing Pinterest's Compute Platform

Pinterest will also continue a major infrastructure modernization effort under the agreement, transitioning from traditional EC2-based environments to a Kubernetes-based architecture on Amazon Elastic Kubernetes Service (EKS). The migration is expected to improve developer velocity, operational reliability and infrastructure efficiency across Pinterest's global platform.

These investments are intended to strengthen and refine Pinterest’s AI infrastructure foundation and support its continued innovation in AI-powered visual search and discovery.

About Pinterest

Pinterest is a visual search and discovery platform where people find inspiration, curate ideas and shop products — all in a positive place online. Headquartered in San Francisco, Pinterest has over 600 million monthly active users worldwide.

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Pinterest has signed a $4 billion cloud services agreement with Amazon Web Services stretching through 2031, the largest infrastructure commitment the visual discovery company has ever made.

According to a Thursday (June 4) press release from Amazon, the deal extends a relationship between the two companies dating back to 2010.

The scale of the commitment reflects how central AI has become to Pinterest’s core business. Per the release, Pinterest serves more than 600 million monthly users whose primary activity is search and discovery. When search results get worse, users disengage. When users disengage, advertisers pull back.

Pinterest has moved its recommendation systems away from basic keyword and category matching toward artificial intelligence (AI) models that understand visual context and user intent. That shift requires significantly more computing power to train and run at scale.

To handle that demand, Pinterest said it plans to use AWS Trainium, Amazon’s custom chip built specifically for running AI workloads, to power its visual search and personalization features. The chip is designed to cut the cost and time required to run large AI models compared to conventional alternatives.

Pinterest said it is also expanding its use of AWS Graviton processors, which already handle roughly a third of its computing operations, across more of the systems that support its platform.

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“Pinterest is heavily investing in AI to make discovery more personal, visual, and actionable for the hundreds of millions of people who use our platform every month,” Pinterest CTO Matt Madrigal  in a statement.

“This expanded commitment with AWS gives us the compute flexibility, hardware optionality, and infrastructure efficiency to accelerate our AI vision for the next generation of visual discovery on Pinterest,” Madrigal added. “This strategic partnership will help accelerate AI innovation at Pinterest, improving both our consumer experience and advertiser performance by advancing our proprietary models and our use of open-source models.”

Pinterest also said it launched Pinterest Assistant, a conversational search feature that lets users refine what they are looking for through back-and-forth queries rather than single searches. The product moves Pinterest closer to the moment of purchase, a gap the company has long worked to close between user inspiration and actual transaction.

The Pinterest-AWS deal lands against a backdrop of accelerating investment across the company. According to a PYMNTS report in May, Pinterest posted $1.008 billion in Q1 revenue, up 18% year over year, above the top of its guidance range. Global monthly active users reached 631 million, a record for the tenth straight quarter. About half of its 80 billion monthly searches carry commercial intent, a ratio that makes the gap between engagement and monetization the central business problem the company is now organized around closing.

For all PYMNTS AI coverage, subscribe to the daily AI Newsletter.

Pinterest is rated a buy, with pessimism over market share loss overdone given its strong balance sheet and GAAP profitability. PINS delivered 18% YoY revenue growth, 11% user growth, and 6% ARPU growth, outperforming guidance and demonstrating operating leverage. Despite slowing top-line growth and competition from META, PINS trades at just 11x earnings and is transitioning from growth compounder to value stock.

Pinterest is a compelling rebound candidate, down ~20% YTD despite solid user and revenue growth. PINS posted a sharp revenue acceleration in Q1, with mid/high teens growth and strong user trends. I reiterate my buy rating, citing attractive valuation multiples and a second wind for software/internet stocks.

Pinterest is expanding its partnership with Amazon. The social pinboard site said on Wednesday that it will now serve as a home for creators’ Amazon Storefronts. These online stores allow creators to generate income from affiliate links that direct their fans to products that they often feature in their videos and social media content.

The move gives Pinterest another way to appeal to creators who have largely built their shopping and affiliate businesses on larger platforms like Instagram, TikTok, YouTube, and Facebook. Pinterest says more than half its users visit it to shop, and that it sees more than 80 billion searches per month.

The deal comes as Pinterest works to regain its position as a shopping destination, and responds to user complaints about the growing volume of AI-generated content on the platform.

Image Credits:Pinterest Pinterest said creators will now be able to use a new tool to connect their Amazon Storefront directly to their Pinterest account. After setup, their affiliate link will be applied automatically whenever they tag an eligible Amazon product, automating the process of promoting items.

These storefronts can then be featured on creators’ Pinterest profiles, allowing their fans and followers to see a broader picture of their recommendations beyond a single Pin or Board.

The deal ties Amazon and Pinterest closer together after the companies introduced their multi-year ads partnership in 2023, which made Amazon the first partner on third-party ads on Pinterest. The company then followed this up with a similar advertising deal with Google in 2024, as it continued to struggle to grow revenue for its popular but not fully monetized bookmarking, shopping, and inspiration platform.

Image Credits:Pinterest However, Pinterest has also faced a barrage of AI content over the past year that has alienated some of its user base and led to many complaints about “AI slop.” The company last year rolled out a series of new tools to fight the AI content and put users in control, but it can only do so much when much of the AI content remains unlabeled.

This partnership offers Pinterest a new way to get back on track. By working with real-world creators, Pinterest could potentially reverse its souring reputation and become known once again as a place to shop and be inspired by other people’s recommendations.

Pinterest notes it will support storefront linking with “other partners” soon.

When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.

Sarah has worked as a reporter for TechCrunch since August 2011. She joined the company after having previously spent over three years at ReadWriteWeb. Prior to her work as a reporter, Sarah worked in I.T. across a number of industries, including banking, retail and software.

You can contact or verify outreach from Sarah by emailing [email protected] or via encrypted message at sarahperez.01 on Signal.

Today, Roku (NASDAQ: ROKU) launched FOX One as a Premium Subscription on The Roku Channel in the U.S. Roku customers can now subscribe to FOX One using their Roku account for live and on-demand access to signature FOX news, sports, and entertainment in one seamless experience on The Roku Channel.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260526271269/en/

Roku customers in the U.S. can now subscribe to FOX One on The Roku Channel to stream FOX’s full slate of news, entertainment, and sports – including every FIFA World Cup 2026™ match.

The launch will make it possible for customers that subscribe to FOX One, the official English-language streaming platform for the FIFA World Cup 2026™, on The Roku Channel in the U.S. to stream all 104 matches of the tournament live and on-demand.

“FOX One is a tremendous addition to Roku’s Premium Subscriptions experience, which is focused on making it easier for customers to discover, subscribe to, and stream the content they love all in one place,” said Gil Fuchsberg, President of Subscriptions, Partnerships & Corporate Development at Roku. “The addition of FOX One expands the premium entertainment, news, and live sports available through Premium Subscriptions on The Roku Channel ahead of the biggest global sports moment of the year.”

Subscribers can enjoy easy access to the full portfolio of FOX brands, including popular FOX entertainment series including “MasterChef,” “Doc,” and “Family Guy”; live and on-demand sports from leagues including the NFL, MLB, and more; and live national and local news from FOX News, FOX Business, FOX affiliates and more.

“FOX One is known for bringing fans access to live global sports along with our signature news and entertainment,” said Pete Distad, CEO, FOX Direct to Consumer. “Joining Premium Subscriptions on The Roku Channel expands our reach and gives fans yet another way to find and enjoy all of the FOX content they love.”

Live sports content from FOX One will also be discoverable through Roku Sports Zone, the platform’s central hub for sports discovery and deeper fan engagement, as well as through sport-specific destinations including the Soccer Zone.

The launch of FOX One as a Premium Subscription on The Roku Channel is the latest example of Roku’s commitment to simplifying streaming, making all of the sports, live content, and entertainment viewers want more discoverable and accessible.

Discoverable across the Roku platform and through The Roku Channel, Premium Subscriptions allow customers to seamlessly subscribe to more than 75 popular streaming services using their Roku account. Premium Subscriptions customers can access and stream their entertainment easily with a single login on their Roku device, the Roku mobile app, or the web, and have the added flexibility to add or cancel services at any time – all directly on their Roku device, or by visiting my.roku.com.

Roku customers can sign up for FOX One on The Roku Channel in the U.S. for $19.99 per month. A 3-day free trial of FOX One is also available for eligible customers. Sign-up is supported on Roku devices or by visiting go.roku.com/fox-one.

About Roku, Inc.

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.

About The Roku Channel

Launched in 2017, The Roku Channel is the home of free ad-supported streaming television on Roku, and features a diverse lineup of more than 80,000 on-demand movies and programs, more than 500 live linear television channels, and Premium Subscription offerings in the U.S. It licenses and distributes content from more than 250 partners and features a growing library of Roku Originals. It is the #2 app on the Roku platform in the U.S. by streaming hours.

About FOX One

FOX One is Fox Corporation’s wholly-owned, direct to consumer streaming service, bringing together the thrill of live streaming and the bold, trusted voices that define the full portfolio of FOX brands, including FOX News Channel, FOX Sports, the FOX Network, FOX Business, FOX Weather, FS1, FS2, FOX Deportes, Big Ten Network, FOX Local Stations and FOX Nation through the FOX One/Fox Nation bundle. FOX One is designed to cater to cord-cutters and cord-nevers, delivering FOX's content directly to audiences wherever they are and allowing them to watch how and when they want. Utilizing the technological innovations of Tubi Media Group, FOX One leverages cutting-edge technology to enhance the user experience, help audiences discover and enjoy content and easily integrate live and on-demand content.

This press release contains “forward-looking” statements that are based on our beliefs and assumptions and on information currently available to us on the date of this press release. Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance, or achievements to be materially different from those expressed or implied by the forward-looking statements. These statements include but are not limited to statements relating to the features, capabilities, and benefits of the Fox One Premium Subscription launch, the Premium Subscriptions experience on The Roku Channel, and the Roku platform. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future. Important factors that could cause our actual results to differ materially are detailed from time to time in the reports Roku, Inc. files with the Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly reports on Form 10-Q. Copies of reports filed with the SEC are posted on Roku’s website and are available from Roku without charge.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260526271269/en/

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Backed by years of consumer insights, the new Home Screen leads to less time searching, more time streaming

SAN JOSE, Calif.--(BUSINESS WIRE)--Today, Roku unveiled a new Home Screen that introduces a more dynamic, smarter experience and will reach over 100 million streaming households soon. With more relevant recommendations and faster pathways to content, the new Roku Home Screen reduces friction, maintains Roku’s signature simplicity, and helps viewers find their next favorite show with ease.

Today’s advancements mark the first significant update of the Roku Home Screen in over a decade. Guided by deep behavioral insights and viewer input, this update ensures every change is grounded in what users actually do, need, and value. The new personalized Home Screen tackles the biggest challenges in streaming, while offering a tailored, content-forward way to start watching.

“When we set out to rethink the Home Screen, we knew we should listen to the people who use it every day. So we talked to the viewers, we tested extensively, and we pushed until the design and the data lined up for a meaningful update,” said Anthony Wood, Founder and CEO, Roku. “Now, our new Home Screen puts entertainment at the center of everything, while staying true to Roku’s simple, intuitive roots. More than 100 million households will feel the difference the moment they turn on their TV—and it opens up a better, more powerful experience for our partners as well.”

A majority of streamers (82%) agree they would love if they turned on their TV and the show they wanted to watch was right on their Home Screen.* The new Roku Home Screen does just that, recommending content based on your interests and helping you start watching faster. With billions of possible Home Screen combinations, Roku’s intelligence models pick the best one for each viewer every time they turn on their TV. New features include:

Quick Access for your most used apps, continuously adapting to your routine An intelligence-driven and expanded content-first “Top Picks for You” section New genre-based destinations such as: For You, built on your interests and filled with fresh personalized picks Subscriptions, allowing for a convenient way to browse and discover from across all your subscriptions in one place Search in key destinations with relevant suggestions and results A streamlined collapsible menu Elevated shortcuts for everyday actions including Save List, Continued Watching, and more Your Daily Scoop, a dynamic row that brings you a curated digest of breakout shows and cultural trends A Roku City tile, taking you to an interactive version of your favorite screensaver The new Home Screen begins rolling out today across all Roku TVs and streaming devices in the United States. Expansion to additional countries will follow in the coming months.

To learn more about what’s new, visit the Roku Blog. Visual and video assets can be found here.

* Roku/Harris Poll April 2026

About Roku, Inc.

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.

This press release contains “forward-looking” statements based on our beliefs, assumptions, and information available to us on the date of this press release. Forward-looking statements may involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from those expressed or implied by the forward-looking statements. These statements include but are not limited to statements relating to the features, capabilities, benefits, and reach of the Roku Home Screen and the Roku platform. Except as required by law, we assume no obligation to update these forward-looking statements publicly or update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future. Important factors that could cause actual results to differ materially are detailed in reports Roku, Inc. files with the Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which are available on Roku’s website.

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SAN JOSE, Calif.--(BUSINESS WIRE)--Roku, Inc. (Nasdaq: ROKU) announced today that Dan Jedda, CFO and COO, will participate in a fireside chat at the Evercore ISI Global TMT Conference on Tuesday, June 2. Mr. Jedda is scheduled to appear at 1:20 PM PT.

A live webcast and replay of the presentation will be available on the investor relations section of the Roku website at www.roku.com/investor.

About Roku, Inc.

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.

More News From Roku, Inc.

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This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Roku (NASDAQ:ROKU | ROKU Price Prediction) is the streaming name everyone wants to talk about after a 64.41% EPS beat and a 79.82% one-year run. But here’s what you should actually be watching.

Roku is the textbook crowded trade right now. The stock has ripped 15.29% year to date and trades at a trailing P/E of 93 with a forward multiple of 53, priced like it has already won connected TV advertising. The fundamentals say otherwise. The Devices segment is in structural decline at -16% YoY with gross margins in the high negative 20% range, and management itself flags tightening memory chip supply as a margin headwind for the back half of 2026. This is a pure-play CTV aggregator competing against Amazon, Google, and Samsung, with a $400 million buyback, zero dividend, and a beta of 2.04. That is a risk profile income-focused investors may want to weigh carefully.

Now look at Walt Disney (NYSE:DIS). The stock is down 8.96% year to date and sits at $103.58, trading at just 17 times trailing earnings and 15 times forward. That is the entire setup: Wall Street is paying a premium for the streaming story at Roku while the actual streaming profitability inflection is happening at Disney for half the multiple.

Three reasons Disney screens better here.

1. A diversified moat Roku cannot replicate. Disney’s Q2 FY2026 delivered $25.17 billion in revenue, up 6.55%, with operating income of $4.603 billion, up 31.29%. Experiences booked record Q2 revenue of $9.487 billion, up 7%, with per-capita spending at domestic parks up 5%. ESPN just absorbed the NFL Network. Roku rents the living room. Disney owns Pixar, Marvel, Lucasfilm, ABC, and the cruise line.

2. The streaming inflection is here, and it’s at Disney. Entertainment SVOD operating income surged 88% to $582 million, hitting a 10.6% operating margin for the first time. Zootopia 2 pulled in $1.9 billion at the global box office and over 1 billion streamed hours. Management raised FY2026 adjusted EPS growth guidance to ~16% and guided to double-digit growth again in FY2027.

3. Capital return retirees actually receive. Disney pays a $1.50 annual dividend with the next payment July 22, 2026. The buyback was raised to at least $8 billion for FY2026, with $5.5 billion already executed in the first six months. Free cash flow hit $4.941 billion in the quarter alone. And on March 31, eight Disney directors bought stock on the open market at $96.96, a coordinated insider vote of confidence Roku simply does not have.

Josh D’Amaro put it plainly on the call: “Our creative and operational momentum drove strong quarterly results, and we continue to expect growth to accelerate in the second half of the fiscal year.” Analysts carry a $129.47 price target on the name.

Roku is the story stock. Disney is the cash machine trading at a discount because the headline writers got bored. Disney looks like the more defensible setup on this risk-reward.

Roku is positioning itself as a premier destination for live sports content. ROKU has added FOX One to its premium subscription lineup ahead of major World Cup coverage. Roku is now in 100 million households worldwide, a landmark accomplishment.

Investing even a little bit of money into the equity of businesses is better than putting no capital at risk. That's because the stock market has proven to be an excellent tool to build long-term wealth. The closely followed S&P 500 index has generated a total return of 328% in the past decade (as of June 3).

Some individual businesses might possess even greater potential. And $1,000 is a good place to start when searching for these opportunities. If you're ready to invest this much, take a look at this streaming stock. It's a consumer play for the long term.

Image source: Getty Images.

Well positioned in the streaming industry In the world of streaming, Netflix, Walt Disney, or Alphabet's YouTube get a lot of the attention. Roku (ROKU +20.52%) might be overlooked. But it's very well positioned in the overall industry.

Investors might think of the business as a seller of media sticks or TVs, but Roku is primarily a platform these days. This platform segment, which makes money from advertising and subscriptions, posted 28% year-over-year revenue growth to over $1.1 billion in Q1 (ended March 31). The platform represents 91% of the company's top line, with hardware accounting for the rest.

Roku currently reaches more than 100 million households, with a whopping 38.7 billion hours of content being viewed on the platform in the last quarter. Both of these figures are up significantly over the past five years, demonstrating increasing adoption. Consumers find real value in being able to aggregate all of their streaming services in a single user interface.

Roku is riding the digital advertising wave as well, particularly in the connected-TV market. As ad dollars keep flowing from traditional cable TV to streaming, which is where more eyeballs and attention will be in the future, this company stands to benefit.

Today's Change

(

20.52

%) $

24.55

Current Price

$

144.19

Profits are soaring This streaming stock has performed extremely well, rising 68% in the past 12 months and 103% over the past three years. Investors have plenty of opportunity for upside, however. Expectations might still be under pressure, as shares trade 75% off their peak right now.

Profit growth will be the key driver of stock gains in the future. Roku generated $484 million in free cash flow in 2025. And the leadership team expects this metric to effectively double to $1 billion by 2028.

The company is also on pace to report positive generally accepted accounting principles (GAAP) net income this year. Consensus analyst estimates call for diluted earnings per share to climb at a compound annual rate of 107% between 2025 and 2028.

This is a solid long-term consumer play. And with $1,000, investors can buy about eight shares of Roku.

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Netflix, Roku, and Walt Disney. The Motley Fool has a disclosure policy.

Roku (ROKU - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Over the past month, shares of this video streaming company have returned -3.5%, compared to the Zacks S&P 500 composite's +0.2% change. During this period, the Zacks Broadcast Radio and Television industry, which Roku falls in, has lost 4%. 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 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 +0.2%.

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 $3.62 indicates a change of +50% from what Roku is expected to report a year ago. Over the past month, the estimate has changed +2.3%.

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

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.

In the case of Roku, the consensus sales estimate of $1.3 billion for the current quarter points to a year-over-year change of +16.9%. The $5.55 billion and $6.31 billion estimates for the current and next fiscal years indicate changes of +17.2% and +13.6%, 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.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

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.

Roku (ROKU - Free Report) ended the recent trading session at $119.62, demonstrating a +2.29% change from the preceding day's closing price. This change outpaced the S&P 500's 1.75% gain on the day. On the other hand, the Dow registered a gain of 1.86%, and the technology-centric Nasdaq increased by 2.54%.

Shares of the video streaming company witnessed a loss of 6.95% over the previous month, trailing the performance of the Consumer Discretionary sector with its loss of 1.28%, and the S&P 500's loss of 1.63%.

The upcoming earnings release of Roku will be of great interest to investors. It is anticipated that the company will report an EPS of $0.61, marking a 771.43% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.3 billion, up 16.93% from the year-ago period.

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 +17.19%, respectively, from the former year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Roku. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.21% higher within the past month. Roku is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Roku is presently being traded at a Forward P/E ratio of 48.5. This indicates a premium in contrast to its industry's Forward P/E of 13.93.

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 164, this industry ranks in the bottom 33% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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.

The Roku company logo is displayed on a building in Austin, Texas, U.S., October 25, 2021. REUTERS/Mike Blake Purchase Licensing Rights, opens new tab

CompaniesJune 12 (Reuters) - Roku Inc (ROKU.O), opens new tab is exploring its strategic options, including a full sale of the company, according to six people ​familiar with the matter, amid interest from companies seeking access to its ‌vast streaming audience and advertising platform.

The company, whose shares jumped 22%, has held discussions with at least one U.S. media company about a potential combination, though no final decisions have been made on ​a potential sale, one of the sources said. The company has also ​explored other options, including a private investment in public equity, or ⁠PIPE transaction, another source said.

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Roku did not immediately respond to requests for comment.

Roku, ​which has a market capitalization of about $19.4 billion, produces streaming devices and Roku-branded TVs, ​distributes streaming services and operates a growing digital advertising business.

Its business is largely driven by advertising and subscription revenue from streaming apps on its platform. Advertising is the largest component, with ​revenue of $613 million in the first quarter, up 27% year on year.

Roku also ​takes a cut of subscription sign-ups to services such as Amazon and Netflix promoted on its ‌interface, ⁠while at the same time pushing its own content offerings, highlighting a structural tension in its model.

The Roku Channel, its free ad-supported streaming service, has become a key growth driver, but it competes with other ad-supported platforms such as Fox (FOXA.O), opens new tab-owned ​Tubi and Paramount’s (PSKY.O), opens new tab Pluto ​TV. Roku last ⁠year partnered with Amazon to allow marketers to buy ads on the Roku Channel, even as Amazon (AMZN.O), opens new tab promotes its own ​free streaming service on Roku’s platform.

Roku Channel is the ​most-watched free ⁠streaming service on its platform, according to Nielsen, but the segment is becoming increasingly crowded as traditional TV declines and more companies launch ad-supported offerings, analysts say.

Roku’s more than ⁠100 ​million streaming households and the data it collects on ​viewing behavior could make it attractive to potential buyers, including media, technology and advertising companies, the sources ​said.

Reporting by Harshita Mary Varghese in Bengaluru; Editing by Joyjeet Das and Arun Koyyur

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Echo Wang is a correspondent at Reuters covering U.S. equity capital markets, and the intersection of Chinese business in the U.S, breaking news from U.S. crackdown on TikTok and Grindr, to restrictions Chinese companies face in listing in New York. She was the Reuters' Reporter of the Year in 2020.

Milana Vinn reports on technology, media, and telecom (TMT) mergers and acquisitions. Her content usually appears in the markets and deals sections of the website. Milana previously worked at GLG and PE Hub, where she spent several years covering TMT deals in private equity. She graduated from CUNY Graduate School of Journalism with Masters in Business Journalism.

Micron Technology MU shares moved higher on Thursday as investors returned to semiconductor stocks and analysts grew increasingly optimistic about the outlook for memory-chip demand driven by artificial intelligence.

The stock gained more than 10% during the session, rebounding after a sharp pullback that had seen shares fall roughly 12% over the previous five trading days.

Despite the recent correction, Micron remains one of the strongest-performing semiconductor stocks of the year, with shares up more than 212% in 2026.

The recovery came even as rival memory-chip producer SK Hynix outlined plans to significantly expand wafer production over the coming decade.

Investors appeared largely unconcerned by the announcement, given the long timeline for the planned capacity increase and the continued strength of AI-related demand.

Wall Street analysts argue that the recent decline in memory stocks does not signal the end of the industry's current growth cycle.

Morgan Stanley analyst Shawn Kim said dynamic random-access memory (DRAM) remains a critical bottleneck in the artificial intelligence buildout, positioning Micron, SK Hynix and Samsung Electronics to continue benefiting from strong demand.

"The cycle is still accelerating, earnings revisions remain robust and more sustainable than most believe," Kim said in a Wednesday note.

The analyst described the recent pullback in memory stocks as a necessary reset following substantial gains earlier in the year.

A correction among memory stocks that have had strong run-ups so far this year "was inevitable and ultimately healthy if this memory bull market is going to extend" through the end of the year, he said.

Kim added that growing demand from agentic AI applications could keep the current cycle running longer than previous memory upcycles.

He also pointed to long-term supply agreements between chipmakers and customers as a factor that could support higher valuation multiples across the sector.

Wolfe Research analyst Chris Caso expressed a similar view, arguing that long-term customer agreements could support "better multiples" because future supply expansions are increasingly tied to actual demand forecasts.

Several brokerages responded to the improving outlook by sharply increasing their price targets for Micron.

Wolfe Research raised its target to $1,250 from $550 while maintaining an Outperform rating.

The firm cited stronger-than-expected memory pricing and increased demand for high-bandwidth memory (HBM), a key component used in advanced AI systems.

Wolfe increased its forecasts after estimating approximately 45% growth in memory pricing during Micron's fiscal third quarter.

The firm expects favorable pricing trends to continue through calendar year 2026.

Daiwa also raised its price target on Micron, increasing its forecast to $1,600 from $700 while maintaining a Buy rating.

Despite the stock's strong performance this year, Micron continues to trade at a relatively modest valuation.

According to Dow Jones Market Data, the company trades at roughly 9.4 times forward earnings estimates, placing it among the cheapest stocks in the S&P 500 on that basis.

Supply constraints remain a key themeIndustry participants continue to point to supply shortages as a major driver of higher memory prices.

Memory prices have nearly doubled since February, while lead times have expanded as demand outpaces available supply.

IDC expects those supply constraints to persist for several more years.

"We’re not seeing any relief to the memory shortage situation before the end of 2027, which means prices will continue to rise and PC manufacturers will struggle to maintain full product portfolios for the foreseeable future," said Jean Philippe Bouchard, Vice President of Devices and Consumers at IDC.

Micron is also expanding its manufacturing footprint.

The company announced that it has selected Bechtel for its semiconductor project in New York, which is expected to support approximately 50,000 jobs, including more than 4,500 construction positions.

As AI-related demand continues to reshape the semiconductor industry, investors are increasingly betting that memory-chip suppliers such as Micron will remain among the sector's primary beneficiaries.