Roku (NASDAQ:ROKU) Shares Gap Up on Earnings Beat

Roku, Inc. (NASDAQ:ROKU) shares gapped up before the market opened on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $82.93, but opened at $96.55. Roku shares last traded at $90.3690, with a volume of 4,055,450 shares changing hands.

The company reported $0.53 EPS for the quarter, beating analysts’ consensus estimates of $0.28 by $0.25. The firm had revenue of $1.39 billion during the quarter, compared to analysts’ expectations of $1.35 billion. Roku had a net margin of 1.87% and a return on equity of 3.42%. The company’s revenue for the quarter was up 16.1% compared to the same quarter last year. During the same quarter last year, the company posted ($0.24) earnings per share.

Roku News Summary

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Q4 top‑ and bottom‑line beat: Roku reported $0.53 EPS vs. $0.28 expected and revenue of ~$1.39B (up 16% y/y), signaling improving operating leverage and a move back to profitability for the quarter. Roku stock surges on earnings beat, record quarter for premium subscriptions
• Positive Sentiment: Raised FY revenue outlook above Street: Roku guided 2026 revenue (~$5.5B) above consensus and flagged an advertising rebound — a key driver for platform revenue growth and valuation re‑rating. Roku forecasts annual revenue above estimates, shares rise
• Positive Sentiment: Platform monetization initiatives: Management plans premium subscription bundles, wider rollouts of its $3 “Howdy” service, and more premium partnerships (HBO Max cited), which should boost ARPU and higher‑margin revenue mix. Roku to launch streaming bundles
• Positive Sentiment: Analyst upgrades and price‑target increases: Multiple firms upgraded/reaffirmed buy/overweight ratings and raised targets (Wells Fargo, Rosenblatt, Needham), supporting positive sentiment and potential upside. Analyst actions on Roku
• Neutral Sentiment: Company investor materials and call posted — the webcast and earnings letter supply details needed to model ad recovery cadence and bundle economics; useful but not a market mover by itself. Roku Releases Fourth Quarter and Full Year 2025 Financial Results
• Negative Sentiment: Insider selling: CEO Anthony Wood disclosed a sale of 50,000 shares (~$4.54M), which can create short‑term selling pressure or cautious investor reaction. SEC Form 4 – CEO Sale
• Negative Sentiment: Profitability and valuation noise remain: despite the quarter, Roku still reports a small negative net margin and negative ROE on the year; some models expect negative FY EPS — keeping investors focused on whether ad recovery and bundles materially lift margins. MarketBeat Roku Summary

Analysts Set New Price Targets

Several research analysts have recently commented on the company. Arete Research set a $132.00 target price on Roku and gave the stock a “buy” rating in a research note on Monday, January 5th. Zacks Research raised shares of Roku from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, February 10th. Pivotal Research upped their price objective on shares of Roku from $120.00 to $135.00 and gave the company a “buy” rating in a report on Monday, November 3rd. Guggenheim increased their price objective on shares of Roku from $110.00 to $115.00 and gave the company a “buy” rating in a research report on Thursday, December 4th. Finally, Needham & Company LLC reaffirmed a “buy” rating and set a $110.00 target price on shares of Roku in a report on Friday. One analyst has rated the stock with a Strong Buy rating, twenty-five have assigned a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Roku currently has a consensus rating of “Moderate Buy” and an average price target of $123.85.

Insider Activity at Roku

In other news, Director Neil D. Hunt sold 2,000 shares of the stock in a transaction on Monday, February 2nd. The stock was sold at an average price of $96.48, for a total value of $192,960.00. Following the completion of the transaction, the director directly owned 7,782 shares in the company, valued at approximately $750,807.36. This represents a 20.45% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CAO Matthew C. Banks sold 729 shares of the firm’s stock in a transaction on Friday, January 2nd. The shares were sold at an average price of $109.04, for a total value of $79,490.16. Following the sale, the chief accounting officer directly owned 5,825 shares in the company, valued at approximately $635,158. This trade represents a 11.12% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 234,790 shares of company stock worth $24,224,759 in the last ninety days. Insiders own 13.98% of the company’s stock.

Institutional Trading of Roku

Hedge funds have recently made changes to their positions in the company. AQR Capital Management LLC increased its stake in shares of Roku by 275.5% in the third quarter. AQR Capital Management LLC now owns 2,586,125 shares of the company’s stock valued at $258,897,000 after buying an additional 1,897,407 shares during the period. Tableaux LLC acquired a new position in Roku in the 2nd quarter valued at approximately $1,746,000. Holocene Advisors LP raised its stake in shares of Roku by 352.3% during the third quarter. Holocene Advisors LP now owns 1,650,448 shares of the company’s stock valued at $165,259,000 after acquiring an additional 1,285,585 shares during the last quarter. Norges Bank acquired a new position in shares of Roku during the fourth quarter worth $92,808,000. Finally, Acadian Asset Management LLC grew its stake in shares of Roku by 41.2% in the second quarter. Acadian Asset Management LLC now owns 2,691,643 shares of the company’s stock worth $236,545,000 after purchasing an additional 785,864 shares during the last quarter. 86.30% of the stock is owned by institutional investors and hedge funds.

Roku Stock Up 8.6%

The company has a market cap of $13.31 billion, a P/E ratio of 158.00 and a beta of 1.99. The firm’s 50 day moving average is $103.95 and its two-hundred day moving average is $98.92.

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.