Where Will Roku Stock Be in 5 Years?
The dawn of a new year brings opportunities, and streaming company (NASDAQ: ROKU) could use some of that right now. It ended the year down 18% when the S 500 gained 26% -- a pretty terrible showing for 2024. Is there any hope left for Roku investors? Let's see where it could be in five years from now, and whether it's worth your investing dollars.
Non-investors know Roku for its streaming devices. But investors know that the device business is actually its smaller one; it makes most of its money from the ads it sells through its platform business. Roku operates an ad-supported streaming network, and as more members join and view more content, it sells more ad space and makes more money.
In the third quarter, device sales increased 23% year over year, and platform sales increased 15%, for a company increase of 16%. The platform business accounted for 85% of sales. It's also a higher-margin business, and gross margin was 45.2% in the quarter, its highest since the 2023 second quarter.
Source Fool.com
Roku Stock
The stock is one of the favorites of our community with 49 Buy predictions and 1 Sell predictions.
At the moment Roku has reached the predicted target price of 136 €, with a current price of 134.84 €.
