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

Roku, Inc. (NASDAQ:ROKU) 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.

The company reported $0.53 EPS for the quarter, beating analysts’ consensus estimates of $0.28 by $0.25. Roku had a return on equity of 3.42% and a net margin of 1.87%.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 previous year, the business earned ($0.24) earnings per share. The business’s revenue for the quarter was up 16.1% on a year-over-year basis.

Key Stories Impacting Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Q4 top‑ and bottom‑line beat: Roku reported $0.53 EPS vs. $0.28 expected and revenue of ~$1.39B (up 16% y/y), signaling improving operating leverage and a move back to profitability for the quarter. Roku stock surges on earnings beat, record quarter for premium subscriptions
• Positive Sentiment: Raised FY revenue outlook above Street: Roku guided 2026 revenue (~$5.5B) above consensus and flagged an advertising rebound — a key driver for platform revenue growth and valuation re‑rating. Roku forecasts annual revenue above estimates, shares rise
• Positive Sentiment: Platform monetization initiatives: Management plans premium subscription bundles, wider rollouts of its $3 “Howdy” service, and more premium partnerships (HBO Max cited), which should boost ARPU and higher‑margin revenue mix. Roku to launch streaming bundles
• Positive Sentiment: Analyst upgrades and price‑target increases: Multiple firms upgraded/reaffirmed buy/overweight ratings and raised targets (Wells Fargo, Rosenblatt, Needham), supporting positive sentiment and potential upside. Analyst actions on Roku
• Neutral Sentiment: Company investor materials and call posted — the webcast and earnings letter supply details needed to model ad recovery cadence and bundle economics; useful but not a market mover by itself. Roku Releases Fourth Quarter and Full Year 2025 Financial Results
• Negative Sentiment: Insider selling: CEO Anthony Wood disclosed a sale of 50,000 shares (~$4.54M), which can create short‑term selling pressure or cautious investor reaction. SEC Form 4 – CEO Sale
• Negative Sentiment: Profitability and valuation noise remain: despite the quarter, Roku still reports a small negative net margin and negative ROE on the year; some models expect negative FY EPS — keeping investors focused on whether ad recovery and bundles materially lift margins. MarketBeat Roku Summary

Analysts Set New Price Targets

ROKU has been the topic of several research analyst reports. Arete Research set a $132.00 target price on shares of Roku and gave the stock a “buy” rating in a research report on Monday, January 5th. Wedbush lifted their price target on shares of Roku from $130.00 to $140.00 and gave the company an “outperform” rating in a report on Friday. Pivotal Research boosted their price objective on shares of Roku from $120.00 to $135.00 and gave the company a “buy” rating in a research note on Monday, November 3rd. Evercore ISI restated an “outperform” rating and set a $150.00 price objective on shares of Roku in a report on Friday. Finally, Guggenheim increased their target price on Roku from $110.00 to $115.00 and gave the stock a “buy” rating in a research report on Thursday, December 4th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-five have issued a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Roku has a consensus rating of “Moderate Buy” and an average target price of $123.85.

Insiders Place Their Bets

In other Roku news, CEO Anthony J. Wood sold 75,000 shares of the firm’s stock in a transaction dated Monday, January 12th. The stock was sold at an average price of $109.61, for a total value of $8,220,750.00. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Gilbert Fuchsberg sold 3,250 shares of the business’s stock in a transaction dated Friday, December 12th. The stock was sold at an average price of $108.78, for a total value of $353,535.00. Following the transaction, the insider owned 59,094 shares in the company, valued at approximately $6,428,245.32. This represents a 5.21% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 234,790 shares of company stock worth $24,224,759. 13.98% of the stock is owned by company insiders.

Institutional Investors Weigh In On Roku

Large investors have recently modified their holdings of the stock. West Tower Group LLC raised its stake in Roku by 128.6% during the 2nd quarter. West Tower Group LLC now owns 8,000 shares of the company’s stock valued at $703,000 after acquiring an additional 4,500 shares in the last quarter. CWM LLC increased its holdings in shares of Roku by 345.4% during the third quarter. CWM LLC now owns 84,010 shares of the company’s stock valued at $8,412,000 after purchasing an additional 65,150 shares during the period. Accurate Wealth Management LLC acquired a new position in shares of Roku during the third quarter valued at $1,115,000. AGF Management Ltd. bought a new stake in shares of Roku during the third quarter valued at about $15,023,000. Finally, Monetta Financial Services Inc. lifted its holdings in Roku by 50.0% in the second quarter. Monetta Financial Services Inc. now owns 15,000 shares of the company’s stock worth $1,318,000 after purchasing an additional 5,000 shares during the period. Institutional investors and hedge funds own 86.30% of the company’s stock.

Roku Price Performance

The firm’s fifty day moving average is $103.95 and its two-hundred day moving average is $98.86. The firm has a market cap of $13.31 billion, a price-to-earnings ratio of 158.00 and a beta of 1.99.

About Roku

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.