12 Best Streaming Service Stocks to Buy According to Analysts

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9) Roku, Inc. (NASDAQ:ROKU)

Average Upside Potential: 9.01%

Number of Hedge Fund Holders: 40

Roku, Inc. (NASDAQ:ROKU) operates a TV streaming platform in the US and internationally. BofA upped the company’s target price to $120 from $90, keeping a “Buy” rating. The firm’s revenue, EBITDA, and free cash flow estimates for FY 2025 moved higher after Roku, Inc. (NASDAQ:ROKU) announced Q4 2024 numbers. Furthermore, the analyst believes that the company’s scale remains a competitive advantage and is attractive to advertisers. The company delivered strong platform results in Q4 2024 which was the first quarter with over $1 billion in platform revenue, which increased 25% YoY.

Total net revenue came in at $4.1 billion, reflecting a rise of 18% YoY. Analyst Ruplu Bhattacharya from Bank of America Securities believes that Roku, Inc. (NASDAQ:ROKU)’s strategic initiatives, including the introduction of new advertising products such as Roku Ads Manager and Roku Data Cloud, can attract more advertisers and fuel platform revenues. Furthermore, Roku, Inc. (NASDAQ:ROKU)’s confidence in guiding FY 2025, a first since 2022, hints at an optimistic expectation of demand growth.

As per the analyst, the guidance is not dependent on the recovery of media and entertainment spending, demonstrating Roku, Inc. (NASDAQ:ROKU)’s broad-based growth strategy. For FY 2025, the company expects total net revenue of $4.610 billion, total gross profit of $2.005 billion, and adjusted EBITDA of $350 million.

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