3 Things to Know Before You Buy Roku Stock
Depending on your attitude, (NASDAQ: ROKU) could seem like anything from a screaming buy to a risky, overvalued stock right now. The streaming video giant is attempting to build a profitable business using a model that combines hardware sales and TV content and relies on advertising revenue to power earnings. It remains to be seen whether this novel approach will allow Roku to monetize its large and growing audience in the coming years.
The stock's volatility in recent quarters reflects Wall Street's doubts around this core question. Share prices have jumped over 50% in the past year but are down nearly 80% from their 2021 highs. Let's look at three key things to know if you're considering scooping up shares today.
The main factor driving the stock's recent rally has been Roku's accelerating growth. A slumping digital advertising market hurt sales through most of 2022 and 2023, but that hangover appears to be over. Revenue rose at a 20% year-over-year rate in Q3, marking a second consecutive quarter of faster gains.
Source Fool.com
Roku Stock
Currently there is a rather positive sentiment for Roku with 27 Buy predictions and 7 Sell predictions.
With a target price of 93 € there is a hugely positive potential of 64.57% for Roku compared to the current price of 56.51 €.
