Should I buy Roku stock in 2025?

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At HelloSafe, our expert has been monitoring Roku’s performance for more than three years. Each month, hundreds of thousands of Canadians rely on us to interpret market trends and highlight the best investment opportunities. Our analyses are intended for informational purposes only and are not to be considered as investment advice.

What is Roku?

How much is Roku stock?

The price of Roku stock is rising this week. As of now, Roku shares trade at $68.14 USD, reflecting a 24-hour increase of 3.31% and a weekly gain of 5.94%. The company holds a market capitalization of $10.11 billion, with an average 3-month trading volume of 4.34 million shares.

Roku does not currently post a P/E ratio, as it remains unprofitable, nor does it pay a dividend.

The stock's beta stands at 2.18, indicating higher volatility than the market average. Investors should be mindful of this volatility when considering Roku for their portfolio.

Our full analysis on Roku stock

Having conducted an exhaustive review of Roku, Inc.’s latest financial results, its multi-year stock trajectory, and a synthesis of third-party analyses and proprietary algorithmic insights—including financial, technical, and competitive benchmarks—we are positioned to offer a rigorous perspective on the stock’s evolving investment case. Roku’s recent fundamentals and its standing relative to both sector peers and market trends offer notable signals worth deeper exploration. So, why might Roku stock once again become a strategic entry point into the streaming and connected entertainment ecosystem in 2025?

Recent Performance and Market Context

Roku’s trading history over the past three years has reflected both the volatility and dynamism of the broader technology sector, particularly in streaming and digital media platforms. As of April 30, 2025, Roku trades at $68.14, with a robust rebound of +14.98% year-over-year despite a modest -14.46% decline over the last six months. The stock has recently rallied over 5.9% in just one week and gained 3.3% in the last 24 hours, illustrating renewed market interest.

Key positive drivers include:

• Strong Q1 2024 earnings: Total net revenue rose 19% year-over-year, with platform and device revenues both showing healthy double-digit growth.
• Persistent user engagement: Streaming households reached a remarkable 81.6 million, up 14% YoY, driving streaming hours 23% higher to 30.8 billion in Q1 alone.
• Improved profitability profile: Roku posted a significantly reduced net loss and delivered its third consecutive positive adjusted EBITDA quarter.

On the macro level, three interconnected vectors continue to support Roku’s sector: the accelerating migration of audiences from linear TV to streaming, surging connected TV advertising, and a US economy that has thus far avoided a material slowdown in consumer discretionary spending. Against this backdrop, Roku not only stands out as the #1 TV operating system in key North American markets (US, Canada, Mexico) but remains at the forefront as the streaming platform of choice for both consumers and advertisers.

Technical Analysis

A careful read of Roku’s technical indicators as of the end of April 2025 reveals a nuanced short- and medium-term setup. The Relative Strength Index (RSI) sits at 54.58, squarely in the neutral range—signifying neither overbought nor oversold market conditions. The Moving Average Convergence Divergence (MACD) stands at -2.13, which, in isolation, suggests weak momentum, yet the price’s position above its 20-day exponential moving average ($64.06) indicates a potential short-term bullish inflection.

Other notable technical factors include:

• The stock is trading marginally below its 50-, 100-, and 200-day EMAs, hinting at persistence of medium-term downward pressure, but its proximity to these averages also positions it well for a possible breakout should positive catalysts materialize.
• Near-term support levels between $62.54 and $64.62 have repeatedly held, reinforcing market conviction at these price points.
• The immediate resistance zone between $66.70 and $68.78 is now being tested; a decisive move above could quickly shift sentiment bullish, especially given the elevated average daily volume of 4.34 million shares.

Overall, Roku’s technical structure suggests a base-building phase, offering investors an intriguing risk-reward profile with the possibility of upside should the next round of fundamental catalysts be positive.

Fundamental Analysis

Roku’s business fundamentals underscore a resilient growth trajectory with significant structural advantages:

• Revenue Expansion: For Q1 2024, Roku delivered net revenue of $882 million, up 19% YoY. Full-year 2024 revenues reached $4.1 billion (+18% YoY), with robust increases in both core business segments.
• Operational Efficiency: EBITDA turned positive for three consecutive quarters, with Q1 2024 adjusted EBITDA at $40.9 million. Net loss narrowed to $50.9 million from $193.6 million a year earlier—clear progress toward profitability.
• Strategic Reach: 81.6 million streaming households and 30.8 billion streaming hours for Q1 evidence unrivaled user scale and engagement. The average revenue per user remains strong at $40.65.
• Platform Leadership: With 85% of revenue generated by the platform segment—driven by advertising and content partnerships—Roku is materially leveraged to the secular shift of ad budgets to streaming. The Devices business (15% of revenue) continues to enjoy double-digit growth, especially through Roku-branded TVs, which have expanded their footprint to include major US retailers.

From a valuation perspective, the current price/sales ratio of 2.44 and enterprise value/revenue of 2.08 suggest a much more attractive entry point relative to historical industry averages, especially given Roku’s leadership position. While the absence of positive EPS (negative P/E) highlights the ongoing journey to sustainable net profitability, operational improvements and scalable revenue drivers validate the market’s willingness to assign a growth multiple.

Structural Strengths:

• Continued innovation (Pro Series TVs, targeted ad platforms)
• Deepening competitive moat as the leading TV OS in North America
• Expanding international partnerships and distribution
• Strengthening brand recognition and consumer trust

Volume and Liquidity

High and consistent trading volumes denote sustained institutional and retail interest, further reinforcing the case for an efficient, liquid market:

• Average 3-month daily volume: 4.34 million shares—ample liquidity for both large and small investors.
• Float: 127.8 million shares ensures flexibility for dynamic price discovery and allows trading strategies to evolve rapidly in response to news flow.
• Significant institutional ownership underpins market confidence and reflects the belief among major funds that Roku’s transformation is fundamentally sound.

Such liquidity, alongside defined support/resistance levels, facilitates tactical positioning and confident accumulation, particularly near technical lows or ahead of earnings and product developments.

Catalysts and Positive Outlook

Multiple visible and latent catalysts may propel Roku into a refreshed growth cycle over the next 12–24 months:

• Product Innovation: 2024 saw the rollout of Roku-branded TVs in key US outlets (Target, Walmart, Amazon), broadening the channel mix and deepening consumer penetration.
• International Expansion: Roku’s dominance as TV OS in the US, Canada, and Mexico is being methodically extended to Latin America and Europe, with the long-term potential to unlock substantial new revenue pools as international advertising markets mature.
• Advertising Technology: Launches of Roku Ads Manager, Roku Exchange, and Data Cloud bolster the brand’s monetization capability, especially as streaming ad budgets accelerate their shift from legacy media.
• Content and Sports Engagement: Nuanced partnerships with major sports leagues (NFL, NBA) are enhancing both user retention and monetizable engagement.
• Secular Industry Tailwinds: The collapse of linear TV viewing—in parallel with explosive demand for on-demand and ad-supported streaming—positions Roku as a principal beneficiary of this paradigm shift.
• Projectable Profit Milestones: Management guidance forecasts positive operating income by 2026, with healthy revenue and gross profit momentum expected for 2025.

Environmental, social, and governance (ESG) initiatives—centered on data privacy, diversity, and energy-efficient product design—further enhance Roku’s profile among Canadian and international investors prioritizing responsible investment practices.

Investment Strategies

Roku’s current setup lends itself to consideration across all major investment horizons:

Short-Term

• Momentum Trade: With technical support levels underpinning the price and high volume, short-term investors might capitalize on moves above immediate resistance at $68.78, especially if confirmed by upcoming quarterly results or sector news.
• Event-driven Positions: Targeted entry ahead of new product announcements, partnerships, or earnings releases could enable traders to benefit from volatility spikes.

Medium-Term

• Base-building Play: As the stock currently consolidates near strong support zones, accumulating positions on minor pullbacks or dips below the 50-day and 100-day EMAs offers an appealing risk-reward, particularly with the likelihood of positive medium-term catalysts.
• Recovery Thesis: Improving EBITDA trends and consistent user growth may set the stage for a sustained re-rating; patience here could be rewarded as the company’s operational leverage becomes more evident in numbers.

Long-Term

• Secular Growth Exposure: For investors with a multi-year investment horizon, Roku epitomizes a platform play on the reshaping of global home entertainment. Compounding gains from high-margin platform revenues, expanding international presence, and operating profit milestones make long-term accumulation a compelling option.

In all cases, entry near multi-month lows or ahead of major catalysts (such as international expansion updates, technology rollouts, or positive earnings surprises) positions investors to benefit from both market normalization and upside revaluations.

Is It the Right Time to Buy Roku?

Roku’s strategic, financial, and operational strengths converge at a particularly opportune moment. The company is benefiting from a reinforcing cycle of user growth, revenue expansion, and improved operational discipline. Its unrivaled position as the leading TV OS—especially in North America—secures a substantial share of the secular migration toward streaming entertainment and advertising.

Despite recent share price volatility and the persistence of short-term technical headwinds, the fundamentals justify renewed attention. Improving adjusted EBITDA, persistent revenue and user growth, and visible progress toward profitability underscore the company’s growth story. Broadening international ambitions and a pipeline of innovative products and monetization tools further support the case for a bullish outlook.

As the sector continues to transition from traditional to digital media, Roku stands at the center of this transformation. With multiple potential catalysts on the horizon—ranging from new product launches to expanding international partnerships and the upcoming quarterly results—Roku appears to represent an excellent entry point for investors seeking exposure to the evolution of connected TV and advertising technology.

While risk management remains essential given the competitive and rapidly evolving landscape, the convergence of technical basing, strong fundamentals, and future-oriented catalysts supports a clear call for renewed consideration of Roku as a strategic component in growth-oriented portfolios. The timing—supported by both data and sectoral trends—seems particularly favorable for those seeking to capitalize on the next wave of streaming innovation.

Roku, with its unmatched scale, improving margins, and vision for a profitable, global platform, appears well-positioned to capture the upside potential in the digital entertainment revolution—making now an especially compelling moment to focus on this dynamic tech stock.

How to buy Roku stock in Canada?

Buying Roku stock online is a straightforward and secure process for Canadian investors when using a regulated broker. Today, you can choose between two flexible methods: owning Roku shares outright (“spot buying” or “cash purchase”) or speculating on price movements using Contracts for Difference (CFDs), which let you trade on margin. Both approaches offer unique advantages for different investor profiles. To help you make an informed choice, you’ll find a comprehensive broker comparison further down the page.

Spot Buying

Spot buying means purchasing Roku shares directly, making you a registered owner of the stock. With this method, your shares are held in your brokerage account, entitling you to voting rights and any shareholder benefits (though note: Roku doesn't currently pay dividends). In Canada, brokers typically charge a fixed commission per trade, often between CAD $5 and $10.

Informations importantes

Practical Example:
If Roku is trading at USD $68.14 (approximately CAD $93, based on a 1.36 exchange rate), a CAD $1,000 investment allows you to buy about 10 shares (taking into account a brokerage commission of around CAD $5).

• Gain Scenario:Suppose the share price climbs by 10%. Your position would be worth CAD $1,100.Result: That’s a gross profit of CAD $100, a +10% return on your investment.

Trading via CFD

CFDs (Contracts for Difference) let you speculate on Roku’s price—up or down—without owning the shares. With CFDs, Canadian investors can use leverage, often up to 5:1 for popular U.S. stocks, amplifying both gains and losses. Instead of a fixed commission, CFD providers commonly charge a spread (the difference between buy and sell price) and an overnight financing fee if you hold leveraged positions for multiple days.

Informations importantes

Concrete Example:
You open a CFD order on Roku with a $1,000 margin and 5x leverage, giving you $5,000 of market exposure.

• Gain Scenario:If Roku rises by 8%, your CFD position earns 8% × 5 = 40%.Result: That’s a $400 gain on a $1,000 investment (excluding spreads and daily financing costs).

Final Advice

Before investing, closely compare available brokers for their fees, currency conversion policies, and market access. Commission rates and trading conditions can vary significantly across platforms in Canada. Ultimately, your choice between spot buying and CFD trading should reflect your risk appetite, investment goals, and desired level of involvement. For more details and to find the best option, review the broker comparison further down this page.

Platforms

Minimum Deposit

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Star Trader

4.9

Minimum Deposit

$50

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Broker specializing in Forex and CFDs

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Minimum Deposit

$1

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Broker regulated since 2006

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Avatrade

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$100

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Our 7 tips for buying Roku stock

The latest news about Roku

Roku maintains its #1 TV operating system status in Canada, underpinning strong market leadership in the region. In the latest disclosures, Roku reaffirmed its dominant position as the top-selling smart TV operating system not only in the United States and Mexico, but also in Canada, where it continues outpacing the nearest competitors. This wide penetration aligns with Canadian consumers’ growing appetite for streaming services, reinforcing Roku's brand strength and visibility in the Canadian retail landscape, including partnerships with major national electronics and mass-market outlets.

Roku reported 19% year-over-year revenue growth in Q1 2024, with substantial improvements in profitability metrics. The company’s total net revenue climbed to $882 million and gross profit reached $388 million. Notably, Roku reduced its net loss to $50.9 million, a marked improvement versus a $193.6 million loss one year ago, and delivered its third consecutive quarter of positive adjusted EBITDA at $40.9 million. This sustained operational efficiency—amid robust streaming household growth to 81.6 million globally—reflects both resilience and improved financial health, supporting near-term business stability in key markets including Canada.

Roku expanded the retail reach of its branded TVs across North America, enhancing accessibility throughout Canada. Recent product and distribution initiatives featured the rollout of Roku’s Pro Series TVs and a broadening of retail partnerships. Whereas previous distribution was largely through Best Buy, new agreements now extend to major outlets such as Walmart, Target, and Amazon. This expanded footprint improves product accessibility for Canadian consumers and cements Roku’s presence in the fast-growing smart TV segment nationwide, underpinning future household adoption.

Platform innovations like Roku Ads Manager and data-driven ad technology bolster the company’s competitive edge and monetization potential. Roku recently introduced new advertising capabilities—Roku Ads Manager, Roku Exchange, and Roku Data Cloud—aimed at strengthening its platform’s value proposition for advertisers both large and small. These enhancements not only open new revenue streams in the digital advertising market, but also bolster ad relevancy and analytics, which could be particularly attractive to Canadian marketers as budgets steadily shift out of traditional TV toward CTV and streaming solutions.

Analyst consensus forecasts a 33% upside potential for Roku stock, affirming positive sentiment amid improving fundamentals. As of the end of April, the average analyst price target for Roku stands at $90.79, approximately 33% above the current share price. This target reflects both the company’s solid execution across key financial metrics and optimism surrounding its sustained leadership in streaming platforms, including strategic markets such as Canada. The consensus, coupled with management’s guidance for revenue growth and a path toward operating profitability, signals constructive momentum that is likely to be well received by investors focused on technology and digital media sectors.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.