Roku (NASDAQ:ROKU) Shares Up 8.6% on Strong Earnings

Shares of Roku, Inc. (NASDAQ:ROKU) shot up 8.6% during trading on Friday after the company announced better than expected quarterly earnings. The company traded as high as $96.55 and last traded at $90.06. 14,446,924 shares were traded during trading, an increase of 274% from the average session volume of 3,858,282 shares. The stock had previously closed at $82.93.

The company reported $0.53 earnings per share (EPS) for the quarter, topping 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 firm had revenue of $1.39 billion for the quarter, compared to the consensus estimate of $1.35 billion. During the same quarter last year, the business posted ($0.24) EPS. The firm’s quarterly revenue was up 16.1% compared to the same quarter last year.

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

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on ROKU. Bank of America increased their price target on shares of Roku from $115.00 to $140.00 and gave the stock a “buy” rating in a research note on Monday, January 12th. Rosenblatt Securities upgraded shares of Roku from a “neutral” rating to a “buy” rating and increased their target price for the stock from $106.00 to $118.00 in a research note on Friday. Wedbush raised their price target on Roku from $130.00 to $140.00 and gave the stock an “outperform” rating in a report on Friday. Susquehanna reaffirmed a “positive” rating and issued a $130.00 target price on shares of Roku in a report on Friday, October 31st. Finally, Piper Sandler reiterated an “overweight” rating and set a $140.00 price target (up from $135.00) on shares of Roku in a research note on Friday. One investment analyst has rated the stock with a Strong Buy rating, twenty-five have assigned a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $123.85.

Insider Buying and Selling

In related news, CFO Dan Jedda sold 3,000 shares of the stock in a transaction on Monday, December 15th. The stock was sold at an average price of $107.44, for a total transaction of $322,320.00. Following the sale, the chief financial officer owned 90,267 shares of the company’s stock, valued at $9,698,286.48. This trade represents a 3.22% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Anthony J. Wood sold 75,000 shares of Roku 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 disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 234,790 shares of company stock valued at $24,224,759. Company insiders own 13.98% of the company’s stock.

Institutional Trading of Roku

A number of hedge funds have recently bought and sold shares of the company. West Tower Group LLC raised its stake in Roku by 128.6% during the second quarter. West Tower Group LLC now owns 8,000 shares of the company’s stock worth $703,000 after purchasing an additional 4,500 shares during the period. CWM LLC boosted its holdings in Roku by 345.4% in the third quarter. CWM LLC now owns 84,010 shares of the company’s stock valued at $8,412,000 after acquiring an additional 65,150 shares during the last quarter. Accurate Wealth Management LLC acquired a new stake in Roku during the third quarter worth about $1,115,000. AGF Management Ltd. acquired a new stake in Roku during the third quarter worth about $15,023,000. Finally, Monetta Financial Services Inc. raised its holdings in shares of Roku by 50.0% in the 2nd 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 Trading Up 8.6%

The firm has a market capitalization of $13.31 billion, a price-to-earnings ratio of 158.00 and a beta of 1.99. The firm has a 50 day moving average price of $103.95 and a two-hundred day moving average price of $98.86.

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.