Roku Stock Surges 13% After Blowout Earnings Report
Roku shares soared 13% in premarket trading following a fourth-quarter earnings report that nearly doubled analyst expectations. The streaming platform posted adjusted earnings of 53 cents per share on $1.39 billion revenue, far exceeding the projected 28 cents per share on $1.35 billion revenue.
JPMorgan maintained its Overweight rating with a $125 price target, citing accelerated platform revenue growth from 20% to 25% quarter-over-quarter. Seaport Research Partners raised its target to $130, implying 57% upside potential. The company's 2026 guidance of $635 million EBITDA on $5.5 billion revenue also surpassed Wall Street forecasts.
Key growth catalysts include Roku's Amazon DSP partnership, major upcoming sporting events, and expansion of subscription services. The earnings beat sparked widespread analyst optimism, with multiple firms upgrading price targets.
