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Investing.com - Raymond James has reiterated its Market Perform rating on Roku Inc. (NASDAQ:ROKU) following the company’s third-quarter 2025 earnings report, which met expectations while providing slightly better-than-anticipated fourth-quarter guidance. The streaming platform’s stock is currently trading at $100.03, just 7% below its 52-week high of $107.25, reflecting a remarkable 56.1% return over the past year.
The streaming platform company delivered results in line with market expectations, with Raymond James noting that excluding political advertising comparisons and the recent Frndly acquisition, Platform segment growth would have been approximately 19-20%. This aligns with Roku ’s overall revenue growth of 17.32% over the last twelve months, according to InvestingPro data, which offers additional insights through 11 more ProTips for subscribers.
Roku’s Platform business benefited from a strong connected TV advertising environment and growing partnerships with demand-side platforms and measurement companies, while its streaming services distribution business performed as expected.
Despite these results and the company’s forecast of positive operating income going forward, Roku’s stock declined following the earnings announcement, which Raymond James attributed to the pre-earnings price run-up and resulting elevated investor expectations. InvestingPro analysis shows Roku is currently trading near its Fair Value, with analysts projecting the company to become profitable this fiscal year with an EPS forecast of $0.14.
Raymond James maintained its neutral stance on Roku, suggesting that investors still find the company’s strategy "somewhat confusing and hard to track given the multitude of new projects" Roku is pursuing, despite recognizing value in some of the company’s initiatives. This cautious outlook comes despite Roku’s strong price momentum, with the stock gaining nearly 47% over the past six months. InvestingPro’s comprehensive Research Report on Roku, one of 1,400+ detailed company analyses available to subscribers, provides clearer insights into what truly matters for this volatile growth stock.
In other recent news, Roku Inc. reported its third-quarter results, with revenue aligning closely with Street consensus and a fourth-quarter revenue outlook surpassing analyst expectations by 2%. The company’s Q3 EBITDA and Q4 EBITDA outlook exceeded Street estimates by 6% and 10%, respectively. Evercore ISI responded by raising its price target for Roku to $105.00, maintaining an "In Line" rating. Citizens also reiterated its Market Outperform rating and set a price target of $145.00 for Roku, noting that platform revenue, after adjustments, grew approximately 20% year-over-year.
Earlier, Roku’s Q2 2025 earnings revealed an 18% year-over-year increase in platform revenue, prompting the company to raise its full-year guidance. Roku also expressed confidence in becoming operating income positive by the fourth quarter of 2025. Despite these positive developments, Roku’s stock experienced a slight decline in pre-market trading following the Q2 earnings announcement. These recent developments highlight Roku’s strong financial performance and optimistic future outlook as noted by analyst firms.
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