Roku, Inc. (ROKU) Stock Analysis
Communication Services · Entertainment
Sell if holding. At $125.15, A.R:R 0.4:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 4.9%; Concentration risk — Customer: Amazon, Best Buy, Walmart, and Target (81.0%).
Roku is the leading TV streaming platform in the US, Canada, and Mexico by hours streamed, with Devices (streaming players, Roku-made TVs, audio) and Platform (digital advertising, subscriptions, content distribution) segments. With 145.6B streaming hours and 90M+ Streaming... Read more
Sell if holding. At $125.15, A.R:R 0.4:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 4.9%; Concentration risk — Customer: Amazon, Best Buy, Walmart, and Target (81.0%). Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Score 5.4/10, moderate confidence.
Passes 6/8 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 73d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: aggressive.
Recent Developments — Roku, Inc.
Latest news
- Roku Q1 2026 Earnings Preview: Bullish sentiment for the quarter and year ahead (ROKU:NASDAQ) - Seeking Alpha — Seeking Alpha positive
- Roku (ROKU) Q1 Earnings: What To Expect - StockStory — StockStory neutral
- Guggenheim Raises Roku Price Target to $130 as Streaming Households Cross 100 Million: Is the Inflection Real? - 24/7 Wa — 24/7 Wall St. positive
- Guggenheim Raises Roku Price Target to $130 as Streaming Households Cross 100 Million: Is the Inflection Real? - Yahoo F — Yahoo Finance positive
- Guggenheim raises Roku stock price target on streaming growth - Investing.com — Investing.com positive
Generated 2026-05-20T20:21:21Z.
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHCustomerAmazon, Best Buy, Walmart, and Target81%10-K Item 1: 'Amazon, Best Buy, Walmart, and Target collectively accounted for 81% of our Devices revenue for the year ended December 31, 2025'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer
Rating Breakdown
1 floor-breaker
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. At $125.15, A.R:R 0.4:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 4.9%; Concentration risk — Customer: Amazon, Best Buy, Walmart, and Target (81.0%). Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Prior stop was $115.46. Score 5.4/10, moderate confidence.
Take-profit target: $130.27 (+4.9% upside). Prior stop was $115.46. Stop-loss: $115.46.
Concentration risk — Customer: Amazon, Best Buy, Walmart, and Target (81.0%); Thin upside margin: 4.9%; V7 low-quality RISK_OFF penalty: -0.5 (Q=5.4).
Roku, Inc. trades at a P/E of 91.9 (forward 36.8). TrendMatrix value score: 4.2/10. Verdict: Sell.
38 analysts cover ROKU with a consensus score of 4.2/5. Average price target: $145.
What does Roku, Inc. do?Roku is the leading TV streaming platform in the US, Canada, and Mexico by hours streamed, with Devices (streaming...
Roku is the leading TV streaming platform in the US, Canada, and Mexico by hours streamed, with Devices (streaming players, Roku-made TVs, audio) and Platform (digital advertising, subscriptions, content distribution) segments. With 145.6B streaming hours and 90M+ Streaming Households globally in 2025, revenue comes from advertising, device sales, and subscription fees.