e.l.f. Beauty stock plummets 20% as revenue and guidance fall short of expectations
Investing.com - Evercore ISI raised its price target on Roku Inc. (NASDAQ:ROKU) to $105.00 from $100.00 on Friday, while maintaining an "In Line" rating following the company’s third-quarter earnings report. The new target represents a modest 5% upside from Roku ’s current trading price of $100.03.
The streaming platform delivered third-quarter revenue approximately in line with Street consensus, while its fourth-quarter revenue outlook came in 2% above analyst expectations. The company’s Q3 EBITDA and Q4 EBITDA outlook exceeded Street estimates by 6% and 10%, respectively. Roku reported EBITDA of $142.95 million for the last twelve months, with revenue growth of 17.32% year-over-year according to InvestingPro data.
Roku’s platform revenue growth showed modest improvement in the third quarter, accelerating to approximately 20% on a pro forma basis compared to about 18% in the second quarter. This growth trajectory appears set to increase slightly again in the fourth quarter.
Evercore ISI identified several potential catalysts for Roku in 2026, including the Amazon DSP integration, Roku Ad Manager for small and medium businesses and performance marketers, and a new home screen experience.
Despite these positive developments, the research firm maintained its neutral stance, noting that at current levels Roku stock trades at 22 times FY26 EV/EBITDA, suggesting that positive factors are largely reflected in the share price, assuming management’s outlook for approximately 2 percentage points of EBITDA margin expansion in 2026 is not overly conservative. InvestingPro data shows Roku currently trades at a much higher 87.4x trailing EV/EBITDA multiple, confirming the premium valuation. InvestingPro Tips also highlight that Roku’s "stock price movements are quite volatile" and it has seen a substantial 46.7% price return over the last six months. For deeper insights and more ProTips on Roku’s financial health, check out the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Roku Inc. reported its third-quarter 2025 results, revealing that platform revenue met consensus expectations, while EBITDA surpassed expectations by approximately $6 million. The platform revenue, after adjustments for political advertising, accounting changes, and contributions from Frndly TV, showed a year-over-year growth of about 20%, marking an acceleration from the previous quarter. Citizens reiterated its Market Outperform rating for Roku with a price target of $145.00, reflecting confidence in the company’s performance. Previously, in the second quarter of 2025, Roku had reported an 18% year-over-year increase in platform revenue and raised its full-year guidance. The company also projected that it would become operating income positive by the fourth quarter of 2025. Despite these optimistic projections, Roku’s stock experienced a slight decline following the Q2 earnings announcement. These recent developments highlight significant financial milestones and analyst confidence in Roku’s growth trajectory.
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