Roku (NASDAQ:ROKU) Shares Up 8.6% on Better-Than-Expected Earnings

Roku, Inc. (NASDAQ:ROKU) shares traded up 8.6% during mid-day trading on Friday following a stronger than expected earnings report. The company traded as high as $96.55 and last traded at $90.06. 14,446,924 shares traded hands 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 EPS for the quarter, beating analysts’ consensus estimates of $0.28 by $0.25. Roku had a negative net margin of 0.61% and a negative return on equity of 1.08%. The business had revenue of $1.39 billion during the quarter, compared to analyst estimates of $1.35 billion. During the same quarter in the prior year, the business earned ($0.24) earnings per share. The firm’s revenue for the quarter was up 16.1% on a year-over-year basis.

Roku News Roundup

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku beat expectations on both revenue and EPS and gave stronger guidance — Q4 revenue of $1.395B (+16% y/y) and EPS of $0.53 topped estimates, and Roku raised FY‑2026 revenue guidance above Street models, citing an ad recovery. Roku stock surges on earnings beat, record quarter for premium subscriptions
• Positive Sentiment: Premium subscription growth is a key driver — Roku reported a record quarter for premium subscription adds and management highlighted higher‑margin platform revenue and gross‑margin expansion. ROKU’s Q4 Earnings Surpass Estimates, Revenues Increase Y/Y
• Positive Sentiment: New monetization initiatives — Roku plans to roll out premium subscription bundles, expand the $3 “Howdy” service across platforms, and deepen partnerships (e.g., HBO Max, Amazon integrations) to boost ARPU and profitability. Roku to launch streaming bundles as part of its efforts to continue growing its profitability
• Positive Sentiment: Analysts are responding — Multiple firms raised ratings/targets (Wells Fargo to $137 overweight, Rosenblatt upgrade, Needham reaffirmation), which can lift sentiment and institutional demand. Analyst coverage roundup (Benzinga)
• Neutral Sentiment: Company investor materials and call available — Roku posted the Q4/annual results and hosted a webcast; details on unit economics and ad trends will matter for trajectory but are informational until new updates emerge. Roku Releases Fourth Quarter and Full Year 2025 Financial Results
• Negative Sentiment: Insider share sale — CEO Anthony Wood sold 50,000 shares (~$4.54M), a disclosure that can trigger short‑term selling or investor wariness despite the company’s fundamentals. SEC Form 4 – CEO Sale
• Negative Sentiment: Profitability and forward EPS remain mixed — despite the beat the company still showed a small negative net margin and negative ROE; some models expect negative FY EPS, so sustained valuation upside depends on consistent margin improvement. MarketBeat Roku Summary

Analysts Set New Price Targets

Several research analysts recently commented on ROKU shares. Citigroup reaffirmed an “outperform” rating on shares of Roku in a research report on Friday, January 9th. JPMorgan Chase & Co. upped their price objective on Roku from $115.00 to $125.00 and gave the company an “overweight” rating in a research note on Friday, December 12th. Morgan Stanley set a $135.00 target price on Roku and gave the stock an “overweight” rating in a research report on Tuesday, December 16th. Needham & Company LLC reaffirmed a “buy” rating and issued a $110.00 target price on shares of Roku in a report on Friday. Finally, Jefferies Financial Group upgraded shares of Roku from a “hold” rating to a “buy” rating and lifted their target price for the company from $100.00 to $135.00 in a research note on Thursday, December 11th. One research analyst has rated the stock with a Strong Buy rating, twenty-five have given a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $123.85.

Insider Buying and Selling

In other news, Director Neil D. Hunt sold 2,000 shares of the firm’s stock in a transaction that occurred on Monday, February 2nd. The shares were sold at an average price of $96.48, for a total transaction of $192,960.00. Following the completion of the transaction, the director directly owned 7,782 shares of the company’s stock, valued at $750,807.36. This trade represents a 20.45% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Dan Jedda sold 3,000 shares of Roku stock in a transaction that occurred on Thursday, January 15th. The shares were sold at an average price of $107.56, for a total transaction of $322,680.00. Following the completion of the sale, the chief financial officer owned 87,267 shares in the company, valued at $9,386,438.52. This trade represents a 3.32% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 234,790 shares of company stock valued at $24,224,759. 13.98% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Vanguard Group Inc. raised its stake in Roku by 2.5% in the 3rd quarter. Vanguard Group Inc. now owns 12,998,674 shares of the company’s stock valued at $1,301,557,000 after acquiring an additional 322,858 shares during the period. Acadian Asset Management LLC lifted its position in Roku by 41.2% during the second quarter. Acadian Asset Management LLC now owns 2,691,643 shares of the company’s stock worth $236,545,000 after acquiring an additional 785,864 shares during the last quarter. AQR Capital Management LLC boosted its holdings in shares of Roku by 275.5% during the third quarter. AQR Capital Management LLC now owns 2,586,125 shares of the company’s stock worth $258,897,000 after acquiring an additional 1,897,407 shares during the period. Geode Capital Management LLC grew its position in shares of Roku by 7.3% in the fourth quarter. Geode Capital Management LLC now owns 2,464,130 shares of the company’s stock valued at $267,389,000 after purchasing an additional 168,214 shares during the last quarter. Finally, Tableaux LLC bought a new position in shares of Roku during the second quarter worth approximately $1,746,000. Institutional investors own 86.30% of the company’s stock.

Roku Stock Performance

The company has a fifty day moving average of $104.15 and a two-hundred day moving average of $98.88. The firm has a market capitalization of $13.31 billion, a price-to-earnings ratio of -450.28 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.