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Roku (NASDAQ:ROKU) Inc. shares have soared to a 52-week high, reaching $103.29, as the streaming device company, now valued at $12.6 billion, continues to navigate the competitive tech landscape. According to InvestingPro analysis, the stock currently trades above its Fair Value, with notable price volatility being a key characteristic. Despite the broader market's volatility, Roku has managed to outperform expectations, marking a significant turnaround with an impressive 54.39% gain over the past six months. While the stock showed weakness over the past year with a 4.87% decline, recent momentum has been strong. This peak reflects investor confidence and a potentially changing tide for Roku's market position, as the company adapts to industry challenges and consumer trends, achieving 18.03% revenue growth in the latest quarter. InvestingPro subscribers have access to 10 additional exclusive insights about Roku's financial health and market position.
In other recent news, Roku Inc. has seen a series of adjustments to its stock price target by various analyst firms. Morgan Stanley (NYSE:MS) increased its price target for Roku to $75, maintaining an Underweight rating, while Needham raised its target to $120 and maintained a Buy rating. Susquehanna adjusted its price target on Roku to $125, despite maintaining a Negative rating. Wolfe Research lifted its price target to $108, maintaining an Outperform rating, while Pivotal Research upgraded Roku from a Hold to a Buy rating and set a new price target of $125.
These adjustments follow recent developments such as significant growth in Roku's installed base, a surge in political advertising revenue, and strong quarterly performance. Notably, Roku's expected free cash flow for 2025 is anticipated to exceed EBITDA, according to Needham analysts. Meanwhile, Morgan Stanley analysts highlighted potential financial challenges for Roku, indicating that the company is expected to have a negative EBITDA post-Stock-Based Compensation in 2026.
Wolfe Research's analyst Peter Supino sees Roku transitioning from a "story stock" to a "value compounder," with a financial trajectory that includes expanding operating margins and a rapid increase in free cash flow. Pivotal Research has also revised its expectations for Roku's 2025 EBITDA and free cash flow upwards, contributing to the significant hike in its price target.
These recent developments underscore Roku's operational achievements and potential for growth, despite the varying ratings from different analyst firms.
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