Roku Crushes Q2 Estimates, Sending Stock Soaring, But Ongoing Hollywood Strike Triggers Analysts' Concern
Portfolio Pulse from Priya Nigam
Roku Inc's Q2 results exceeded estimates, leading to a surge in its stock price. Analysts from Needham, KeyBanc Capital Markets, and William Blair have maintained positive ratings, with Needham raising the price target from $80 to $85. However, there are concerns about a potential decline in Media & Entertainment ads in H2 2023 and the impact of ongoing Hollywood strikes on revenues. Roku's global streaming hours grew 21% YoY, with hours on the Roku Channel expanding over 50% YoY.
July 28, 2023 | 2:55 pm
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Roku's Q2 results exceeded estimates, leading to a surge in its stock. However, concerns about a potential decline in Media & Entertainment ads and the impact of Hollywood strikes could affect future performance.
Roku's strong Q2 results and positive analyst ratings have led to a surge in its stock price, indicating a positive short-term impact. However, concerns about a potential decline in high-margin Media & Entertainment ads and the impact of ongoing Hollywood strikes on revenues could negatively affect the stock in the future.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100