Connect with us

Hi, what are you looking for?


Is it a good idea to invest in Roku stock after its strong Q4?

Roku Inc (NASDAQ: ROKU) is up nearly 20% this morning after reporting market-beating results for its fourth financial quarter.

Jefferies remains super bearish on Roku

Shares went up also because the streaming platform issued better-than-expected guidance for Q1.

None of it, however, was enough to turn Andrew Uerkwitz – Senior Analyst at Jefferies even a bit more bullish on the Nasdaq-listed firm because more broadly, he expects the advertising slowdown to continue moving forward.

Our thesis remains the same. [Ad budgets will cut this year and in 2024] as broader macro weakness hurts return on ad spend and outsized CTV growth will be driven by premium platforms that’ll not benefit Roku.

Versus the start of 2023, Roku stock is now up nearly 90%.

Roku stock could be cut in half

On Thursday, Uerkwitz raised his price objective on the California-based company to $36 a share. But that’s still alarming considering what he’s suggesting is that this tech stock could be cut in half over the next twelve months.

The Jefferies analyst is sticking to his underperform rating even though Roku reported a net increase of 9.9 million active accounts in 2022. Still, he’s convinced that incremental CTV advertising spend this year will go to the likes of Netflix and Disney+.

In a letter to shareholders, CEO Anthony Wood also confirmed that advertising did improve in limited categories but the market at large was still muted in the fourth quarter.

Analysts at Guggenheim and JPMorgan also reiterated their dovish view on Roku stock today for pretty much the same reasons.

The post Is it a good idea to invest in Roku stock after its strong Q4? appeared first on Invezz.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like


    Reprinted from the Future of Freedom Foundation President Biden’s campaign to banish (or maybe outlaw) political paranoia took a wallop last spring. In April,...


    Inflation appears to be on the decline. The Personal Consumption Expenditures Price Index (PCEPI), which is the Federal Reserve’s preferred measure of inflation, grew...

    Editor's Pick

    It’s already a cliché, but technology is rapidly improving. And for many businesses, it’s hard to catch up. However, it’s not just the average...

    Editor's Pick

    At Broadband World Forum 2022, Fibocom launched 5G module FG370 based on MediaTek T830 platform, aiming to empower the deployment of 5G FWA for...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2022 All Rights Reserved.