U.S. stock futures slip lower; Cook’s firing increases Fed independence worries
Roku Inc. (NASDAQ:ROKU) stock rose Tuesday to $82.38, continuing its impressive 52% gain over the past year, after Benchmark reiterated its buy rating and $130.00 price target on the streaming platform company following a major partnership announcement with Amazon (NASDAQ:AMZN). According to InvestingPro data, analyst targets for Roku currently range from $60 to $130.
The two companies revealed an exclusive partnership that will provide Roku with its deepest demand-side platform (DSP) integration yet, according to Benchmark. The deal represents Amazon’s significant move toward expanding its buying platform across the connected TV universe. With a market capitalization of $12.13 billion and a robust 17.3% revenue growth, Roku maintains a GOOD financial health score according to InvestingPro analysis.
The partnership will not begin until the fourth quarter of 2025, suggesting meaningful financial impact would likely come in 2026. Benchmark noted that Magnite (NASDAQ:MGNI), which remains Roku’s preferred supply-side platform partner, should also benefit from incremental volume through their systems as a result of the agreement.
The Amazon partnership announcement coincided with a separate Yahoo-Netflix DSP deal also revealed Tuesday, indicating heightened competition in the connected TV advertising space with new entrants challenging incumbent platforms.
Benchmark suggested the Amazon deal could potentially lead to future collaborations between the companies, including shoppable advertising features, and might signal that a Google (NASDAQ:GOOGL) DV360 integration could follow as Roku pursues a strategy of being "DSP agnostic but also DSP ubiquitous." For deeper insights into Roku’s strategic positioning and comprehensive financial analysis, access the full Pro Research Report available exclusively on InvestingPro.
In other recent news, Roku Inc. has announced a significant partnership with Amazon, which is expected to impact its financial performance starting in 2026. The collaboration will integrate Roku’s viewer data with Amazon’s demand-side advertising platform, enhancing connected TV advertising campaigns. BofA Securities raised its price target for Roku to $100, noting that this new advertising solution will become available to advertisers in late 2025 and is anticipated to have a more pronounced benefit in 2026. Loop Capital also upgraded Roku’s stock rating from Hold to Buy, citing the potential for improved targeting and measurement capabilities due to the partnership.
Guggenheim reiterated its Buy rating, emphasizing that the partnership contradicts bearish views and could drive growth in Roku’s monetization areas. Citizens JMP maintained a Market Outperform rating, highlighting the partnership’s alignment with Roku’s strategy to leverage its TV operating system market share. Additionally, Citizens JMP pointed out Roku’s ongoing testing of new home screen features, which could increase monetizable inventory by directing more traffic to The Roku Channel. This series of developments underscores a positive outlook among analysts regarding Roku’s strategic moves and potential for revenue growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.