Why Roku Stock Is a Screaming Buy Right Now

Streaming's dark horse is primed for a breakout—and Wall Street hasn't caught on yet.

The ad rebound nobody's talking about

While analysts obsess over FAANG, Roku's quietly monetizing the cord-cutting revolution. Its platform now commands 38% of U.S. streaming time—yet trades at half its 2021 peak. That's right, the stock's still in bargain territory despite adding 14 million active accounts last year.

The kicker? Those accounts aren't just growing—they're spending. Average revenue per user jumped 22% last quarter as advertisers finally wake up to streaming's targeted potential. Forget 'peak TV'—we're entering the age of peak addressable ads.

Of course, the suits will tell you to wait for 'confirmation.' But by then, the easy money's gone. Sound familiar? *cough* Bitcoin 2018 *cough*

Image source: Getty Images.

Tapping two expanding markets

Roku benefits from the ongoing cord-cutting trend. Households that ditch their cable TV subscriptions and choose streaming services lead to a growing base of potential customers. And with the huge number of content choices out there, consumers value having a streaming platform that aggregates them all in a single interface.

Additionally, Roku generates revenue from its digital ad efforts, which shows up in its platform segment. It recently struck a deal withto improve targeting capabilities for ad buyers, highlighting the valuable digital real estate that Roku owns. According to Grand View Research, the digital advertising industry is expected to grow at an annualized rate of 15% through the rest of this decade to $1.2 trillion.

In the second quarter of 2025, Roku viewers streamed a whopping 35.4 billion hours of content. And at the end of last year, there were 89.8 million accounts on the platform. As we look ahead, it's clear that streaming will continue to steal eyeballs and viewing time. And with that trend, the ad dollars will follow.

With two powerful secular trends (streaming entertainment and digital advertising) at its back, Roku should be able to register strong revenue growth for many years. And this favorable setup is one reason to scoop up shares today.