Roku Stock Forecast & Price Prediction - What's Next for ROKU Stock Price?

I. Recent Roku Stock Performance

Roku Insider Trading

Investors frequently examine insider transactions to evaluate executives' perspectives on the stock's value and future. However, executives' perspectives on the company's future performance are not the sole determinant of the impact of such transactions.

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According to a recent SEC filing, Stephen H. Kay, Roku Inc.'s Senior Vice President, General Counsel, and Secretary, sold $189,652 of the company's stock.

The filing also disclosed that on June 3, 2024, Roku withheld shares valued at $222,257 for $57.94 per share to satisfy income tax obligations associated with the vesting of restricted stock units (RSUs).

Kay's stock sales were executed by a pre-arranged 10b5-1 trading plan. This plan enables corporate personnel to dispose of shares at predetermined intervals, alleviating insider trading concerns.

Due to these transactions, Kay's direct holdings in Roku consist of 82,036 Class A Common Stock shares, which reflect the adjustments made post-sale and post-RSU vesting.

Roku's Move-On Streaming Business

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In the streaming industry, Roku Inc. has recently made strategic advancements. The company announced an expanded partnership with iSpot.tv to improve the measurement and optimization of ads for its advertisers. The reliable metrics that this collaboration will provide advertisers will highlight the distinct reach of ads on Roku's platform. In addition, to guarantee the authenticity of video ad inventory, iSpot.tv will incorporate Roku's Advertising Watermark technology.

In addition, Roku has collaborated with The Trade Desk (TTD) to improve the TV streaming advertising experience. This partnership offers advertisers enhanced resources for planning, purchasing, and evaluating advertising campaigns on streaming media.

Roku Advertisement Solution

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Roku Inc. (ROKU) recently introduced Roku Exchange, an innovative advertising technology platform. Utilizing Roku's extensive data and AI-driven optimization, this new solution enhances campaign performance by connecting premium ad inventory with advertiser demand.

The Roku Exchange is a central hub for supply integrations, equitable auctions, and ad decision-making within the Roku platform. It collaborates with Magnite's supply-side platform to engage with the broader programmatic landscape. Audience-based ad decisioning for various ad formats, programmatic access to inventory and identity data, and rich content signals for enhanced transparency and optimization are among the potent tools the platform provides to advertisers. AI-driven personalization further enhances audience engagement, which provides personalized ad experiences.

Expert Insights on ROKU Stock Forecast for 2024, 2025, 2030 and Beyond

Roku stock (ROKU) trades marginally low from where there is an open space to increase the share price towards the all-time high level.

Before proceeding to the in-depth ROKU Stock Forecast for 2024, 2025, 2030 and Beyond, let's see what analysts think about Roku stock:

II. Roku Stock Forecast 2024

Based on the double bottom information, Roku stock is more likely to reach the 87.00 level by the end of 2024.

Roku stock experienced a massive crash from its November 2023 peak, bringing the stock price down to the $51.34 level. However, the price action has become sideways since March 2024, indicating weaker selling pressure. As the recent price action is sideways at the bottom, we may expect a bullish continuation after a valid breakout.

Looking at the broader context, the 100-day simple moving average (SMA) is above the current price with a downward slope. This indicates that the major market trend is still bearish and could drive the price below the $51.34 support level to capture sell-side liquidity.

Examining the indicator window, the Relative Strength Index (RSI) found a bottom at the 30.00 point and showed a rebound. However, buyers need a solid continuation to the 50.00 level in the RSI, aiming for the 70.00-80.00 area.

Based on the Roku Stock Forecast 2024, investors should closely monitor how the price reacts to the $60.00 swing high. A bullish recovery with a daily candle above this point could present a high-probability long opportunity. Another bullish approach might come after a valid downward continuation with a sell-side liquidity sweep from the $50.00 psychological point. In both cases, investors should look for a valid candlestick formation on the daily chart with a bullish reversal pattern before aiming for the $87.00 target.

On the other hand, selling pressure is still active in the market, with the 100-day SMA exerting pressure on the bulls. In that case, corrective support pressure and recovery from the 100-day SMA area could resume the existing trend.

A. Other ROKU Stock Forecast 2024 Insights

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As per the report from Marketbeat, analysts are on Hold for this stock, where the average Roku target price for 2024 is $82.50, which is 52% higher than the current price. The current projection is based on 22 analysts from different institutions.

Jason Bazinet, a Citi analyst, has reiterated his Hold rating on Roku's stock. He cites uncertainty regarding the company's long-term prospects in spite of prospective improvements in its financial metrics.

Eight of the 23 analysts who have evaluated Roku have assigned it a Buy rating, thirteen have assigned it a Hold rating, and two have assigned it a Sell rating. Following the release of its third-quarter results, the stock has experienced a significant increase, surpassing the average Roku stock price target of $87.84.

Roku's highest target price of $120 indicates a potential 18% increase in value over the next 12 months.

B. Key Factors to Watch for Roku Stock Prediction 2024

Roku EPS Forecast 2024

Roku showed an amazing business recovery, where the latest earnings per share showed an amazing 41% gain. Moreover, the average gain in the last 4 quarters was above the 20% satisfactory level. Considering the ongoing growth, the stock is more likely to show a decent upward pressure by the end of 2024.

ROKU Cash Flow Position

According to the recent earnings report, ROKU showed a decent recovery in its cash and cash equivalent position. In the fourth quarter of 2023, the company had $12.80 million in cash in hand, which increased to $46.01 million in the latest quarter. The key driver for Free Cash Flow is operating activity, which is related to direct business operations.

ROKU Financial Metric: P/S Ratio

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ROKU Price to Sales ratio suggests a challenge for bulls as the current reading of 2.2X is lower than the industry average of 3.4X. Also, the current reading is lower than its peers, where the highest level is at 4.9X for Formula One Group.

Considering the upcoming price projection, investors should find a P/S ratio to reach near the average mark before considering a safe buy.

Roku Stock Forecast 2024 - Bullish Factors

• The number of active accounts on Roku has steadily increased. As of Q1 2024, Roku reported 71.6 million active accounts, representing a 17% year-over-year increase. The continued growth of active accounts can enhance the company's financial health, resulting in higher ad revenues and subscription fees.
• Roku has a substantial and active user base.  This results in an increase in the number of eyes on the ads, which is a significant source of revenue for Roku.  In a robust advertising market, Roku may experience an increase in its ARPU (Average Revenue Per User).
• Roku is no longer solely concerned with hardware.  They are diversifying their product line by introducing Roku Originals and their own Roku Channel.  This has the potential to generate new revenue streams and increase user engagement.

Roku Stock Forecast 2024 - Bearish Factors

• The streaming device market is becoming saturated with participants such as Apple TV, Chromecast, and Amazon Fire Stick. This competition can exert pressure on Roku's pricing and market share.
• Advertising generates a substantial portion of Roku's revenue. However, economic downturns or recessions may reduce advertising budgets. Furthermore, consumer behavior or privacy regulation alterations may also influence advertising expenditures.
• Roku negotiates content licensing agreements with streaming services to provide them on its platform.  These expenses are increasing, which could potentially reduce Roku's profit margins.