Roku (ROKU, Financial) saw its shares skyrocket 15% in premarket trading on Friday after the streaming giant reported robust fourth-quarter results. Revenue climbed 22% year-over-year to $1.2 billion, beating consensus estimates, while operating losses narrowed to $39.1 million, compared to a $104.2 million loss in Q4 2023.
On the other side, JPMorgan maintained its “outperform” rating for Roku, raising its price target from $92 to $115, citing confidence in the company's long-term outlook. Roku also provided its first forward guidance since 2022, projecting 2025 revenue at $4.61 billion and first-quarter revenue of $1 billion, aligning with market expectations.
There is also a big upside for the company, as its user base grew substantially, ending 2024 with 89.8 million households and surpassing 90 million in January 2025. Roku emphasized its commitment to providing “clear and accurate” projections to rebuild investor confidence.
After Roku stock down 4% over past 52-weeks, analysts remains optimistic about Roku's positioning in the streaming sector. The good thing is that the company aims to achieve full-year profitability by 2026, with the help of its expanding customer base and improved operational performance.
