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Upturn AI Summary - About
Roku Inc(ROKU)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for ROKU
10/30/2026: ROKU (2-star) has a low Upturn Star Rating. Not recommended to BUY.
Roku is a prominent streaming platform provider that connects users to content through its hardware devices and proprietary software. Its primary strength lies in its large, engaged user base, which creates a high-margin opportunity for advertising revenue as television viewing shifts from linear to digital. The company's main investment story is its potential to capture a growing share of TV ad budgets. However, Roku faces significant risks from intense competition by tech giants and the cyclical nature of advertising spending. The stock is best suited for growth-oriented investors who can tolerate volatility, as the company navigates the challenges of scaling while maintaining profitability.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Strong fit | Roku operates in the expanding connected TV market, offering significant potential for revenue growth as advertising migrates from linear to digital. |
| Momentum investor | Mixed fit | The stock can exhibit high price volatility and should be evaluated based on current market sentiment and technical signals. |
| Value investor | Weak fit | Roku's valuation is often high relative to current earnings, making it a poor fit for investors focused on traditional valuation metrics. |
| Dividend investor | Weak fit | Roku does not pay a dividend and focuses on reinvestment, failing to provide the income stream sought by dividend investors. |
| Low-risk investor | Weak fit | High price volatility and competitive threats make this stock unsuitable for investors seeking low risk. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | High | The stock is subject to significant price swings driven by market sentiment and growth expectations. |
| Valuation risk | High | Growth expectations are often priced into the stock, leaving it susceptible to corrections if growth targets are missed. |
| Competition risk (Big Tech platforms) | High | Direct competition from Amazon and Google poses a constant threat to market share and platform influence. |
| Business quality | Medium | While the platform has sticky user engagement, it remains sensitive to fluctuations in advertising spend. |
| Dividend income | Low / none | The company does not provide dividend income. |
| Execution risk | Medium / high | Success depends on the company's ability to navigate competition while expanding its advertising revenue. |
Price Behavior
Strong Uptrend
The stock has maintained a strong upward price trend across the last three quarters.
Moderately Choppy
The stock has experienced noticeable price swings while retaining some directional structure.
Analysis of Past Performance
Type Stock | Historic Profit -29.06% | Avg. Invested days 34 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Advisory Rating  | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 10/30/2026 |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals
Financial Health Rating
Growth Momentum Score
Ownership
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue)
Economic Dimensions
Quantitative Style Profile
Style Classification
Quality Focused
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 23.02B USD | Price to earnings Ratio 66.01 | 1Y Target Price 162.45 |
Price to earnings Ratio 66.01 | 1Y Target Price 162.45 | ||
Volume (30-day avg) 2.0M shares | Beta 2.05 | 52 Weeks Range 78.53 - 160.22 | Updated Date 11/01/2026 |
52 Weeks Range 78.53 - 160.22 | Updated Date 11/01/2026 | ||
Dividends yield (FY) - | Basic EPS (TTM) 2.35 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Platform | Digital advertising, subscription revenue shares, and content promotion on The Roku Channel. | This is the core, high-margin engine of the business where Roku earns money as users watch content. |
| Devices | Streaming players, smart home products, and branded TVs. | Hardware sales serve as the entry point to acquire customers for the profitable Platform business. |
| Geography | Operations are currently concentrated in North America, with expanding international efforts. | Future revenue growth relies heavily on successful expansion into new global markets. |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date 2026-11-02 | When After Market | Estimate 0.55 | Actual - |
Profitability
Profit Margin 6.82% | Operating Margin (TTM) 12.17% |
Management Effectiveness
Return on Assets (TTM) 4.25% | Return on Equity (TTM) 13.12% |
Valuation
Trailing PE 66.01 | Forward PE 38.61 | Enterprise Value 20.95B | Price to Sales(TTM) 4.42 |
Enterprise Value 20.95B | Price to Sales(TTM) 4.42 | ||
Enterprise Value to Revenue 4.02 | Enterprise Value to EBITDA 28.67 | Shares Outstanding 132.05M | Shares Floating 131.00M |
Shares Outstanding 132.05M | Shares Floating 131.00M | ||
Percent Insiders 0.65 | Percent Institutions 87.98 |
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
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