Roku’s recent performance has been disappointing, with the stock plummeting 89% since its peak in 2021. However, there is still potential for upside in the company.
Despite the stock’s decline, Roku continues to grow its audience and engagement, which is a positive sign. The company’s revenue for the first quarter increased by 19% to $881.5 million, surpassing expectations. Although Roku is not yet profitable, it is making progress towards that goal.
While Roku’s outlook for the current quarter is uninspiring, the company has generated positive free cash flow and adjusted EBITDA for three consecutive quarters. This demonstrates that Roku is on the right track, even though there may be some challenges ahead.
Roku faces competition from larger players in the streaming market, but its strong position as a leader in connected-TV advertising is a key advantage. Analysts have differing opinions on the company’s future potential, but overall, Roku remains a cash-rich company with significant growth opportunities.
Despite its recent stock performance, Roku remains popular with consumers, which could ultimately drive its success in the long run. As the shift from traditional television to streaming continues, Roku is well-positioned to capitalize on this trend.