Roku (NASDAQ:ROKU) Shares Gap Up Following Better-Than-Expected Earnings

Roku, Inc. (NASDAQ:ROKU)’s share price gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $82.93, but opened at $96.55. Roku shares last traded at $90.3690, with a volume of 4,055,450 shares trading hands.

The company reported $0.53 EPS for the quarter, beating the consensus estimate of $0.28 by $0.25. Roku had a negative net margin of 0.61% and a negative return on equity of 1.08%. The business had revenue of $1.39 billion during the quarter, compared to the consensus estimate of $1.35 billion. During the same quarter in the prior year, the firm earned ($0.24) EPS. The firm’s revenue was up 16.1% compared to the same quarter last year.

Roku News Roundup

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku beat Q4 estimates and raised FY revenue expectations — Q4 EPS $0.53 vs $0.28 consensus and revenue $1.39B vs $1.35B; company forecast FY‑2026 revenue above Street estimates (~$5.5B), supporting the thesis of recovering ad demand. Read More.
• Positive Sentiment: Management pushing higher‑margin monetization: Roku flagged premium subscription bundles and pointed to ad‑growth drivers (including partnerships such as with Amazon) that could lift ARPU and gross margins over time. Read More.
• Positive Sentiment: Fresh buy ratings and higher targets: Rosenblatt upgraded Roku to Buy with a $118 PT (up from $106) and Needham reaffirmed a Buy with a $110 PT — analyst optimism now skews bullish and can support demand for the shares. Read More.
• Neutral Sentiment: Wall Street coverage & investor materials — Several outlets ran takeaways (earnings transcript, analyst notes, Barron’s feature on upside). Useful for conviction-building but neutral until guidance or new data shifts expectations. Read More.
• Negative Sentiment: Insider selling: CEO Anthony Wood disclosed sale of 50,000 shares (~$4.54M), which can trigger near‑term selling and investor caution. Read More.
• Negative Sentiment: Profitability & valuation remain a concern — despite the beat Roku still reports a small negative net margin and negative ROE, and some models show FY EPS remains negative; investors may trim positions after the post‑earnings rally given elevated multiples. Read More.
• Negative Sentiment: Broader market weakness / macro headlines — mixed futures, weak housing data and rotating sector flows have pressured momentum stocks today, likely contributing to Roku’s pullback despite company‑specific positives. Read More.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on the company. Susquehanna restated a “positive” rating and set a $130.00 price objective on shares of Roku in a research report on Friday, October 31st. Evercore reissued a “positive” rating on shares of Roku in a research note on Friday, October 31st. Benchmark restated a “buy” rating on shares of Roku in a report on Wednesday, February 4th. Citigroup reaffirmed an “outperform” rating on shares of Roku in a research note on Friday, January 9th. Finally, Bank of America raised their price objective on shares of Roku from $115.00 to $140.00 and gave the company a “buy” rating in a report on Monday, January 12th. One research analyst has rated the stock with a Strong Buy rating, twenty-four have assigned a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $121.36.

Insider Buying and Selling

In other news, CAO Matthew C. Banks sold 729 shares of the firm’s stock in a transaction dated Friday, January 2nd. The stock was sold at an average price of $109.04, for a total transaction of $79,490.16. Following the completion of the transaction, the chief accounting officer directly owned 5,825 shares in the company, valued at $635,158. This trade represents a 11.12% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Gilbert Fuchsberg sold 3,250 shares of Roku stock in a transaction that occurred on Friday, December 12th. The stock was sold at an average price of $108.78, for a total value of $353,535.00. Following the completion of the transaction, the insider directly owned 59,094 shares in the company, valued at approximately $6,428,245.32. This represents a 5.21% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 234,790 shares of company stock valued at $24,224,759. Corporate insiders own 13.98% of the company’s stock.

Institutional Investors Weigh In On Roku

A number of institutional investors have recently modified their holdings of the company. Victory Capital Management Inc. raised its stake in Roku by 1,682.4% during the fourth quarter. Victory Capital Management Inc. now owns 265,431 shares of the company’s stock worth $28,797,000 after buying an additional 250,539 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in Roku by 0.9% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 295,552 shares of the company’s stock valued at $32,064,000 after acquiring an additional 2,625 shares during the last quarter. Wells Fargo & Company MN grew its holdings in Roku by 34.2% during the 4th quarter. Wells Fargo & Company MN now owns 123,217 shares of the company’s stock worth $13,368,000 after acquiring an additional 31,380 shares during the period. Y Intercept Hong Kong Ltd raised its position in shares of Roku by 309.2% in the 4th quarter. Y Intercept Hong Kong Ltd now owns 116,459 shares of the company’s stock worth $12,635,000 after acquiring an additional 87,997 shares in the last quarter. Finally, Advisors Asset Management Inc. bought a new position in shares of Roku in the 4th quarter worth about $101,000. 86.30% of the stock is owned by institutional investors.

Roku Stock Performance

The business has a 50 day moving average price of $104.15 and a 200-day moving average price of $98.88. The company has a market capitalization of $13.43 billion, a price-to-earnings ratio of -454.29 and a beta of 1.99.

Roku Company Profile

Roku, Inc (NASDAQ: ROKU) is a technology company that develops and operates a proprietary streaming platform designed to deliver entertainment content to consumers via internet-connected devices and smart televisions. Since its inception in 2002 in California, Roku has focused on simplifying access to streaming services for viewers worldwide. The company’s platform enables users to discover, access and manage a wide array of over-the-top content from major streaming services, free ad-supported channels and niche providers.

At the core of Roku’s product lineup are a range of streaming players and sticks, which connect to televisions via HDMI and deliver the Roku OS experience.