Streaming video may not be as hot a topic as it once was, but it still has plenty of users involved and analysts watching the field. In fact, CFRA recently gave streaming figure Roku (NASDAQ:ROKU) a leg up with an upgrade. That upgrade didn’t hold much water with investors, though, who sent Roku shares down just over 3% in Friday afternoon’s trading session.
The word from CFRA analyst Kenneth Leon took Roku up from Sell to Hold and also saw its price target hiked from $65 to $75. Leon noted that lower net operating losses were likely going to prove helpful in convincing investors that Roku has a “winning business model.” If Roku can make that notion a reality, Leon noted, then that will help it capture further market share.
Not that Roku is doing particularly poorly in market share. A new report notes that Roku, Pluto TV, and Tubi combined make up the fifth most popular streaming service in terms of market share. The Roku Channel had a total of 1.1% of all streaming traffic, based on figures from Nielsen. Meanwhile, Tubi had slightly more than 1.3%, and Pluto TV had 0.9%.
The Roku Channel also individually boasted an identical market share—1.1%—to Paramount+. Put these three together, meanwhile, and you get 3.3% of the market, which is only slightly behind Hulu at 3.6% and Amazon Prime Video at 3.4%. So Roku is already well on its way to proving itself a capable platform, and with more users looking for entertainment bargains, it gives Roku an advantage going forward.
Is Roku a Buy, Sell, or Hold?
Turning to Wall Street, Roku stock is considered a Moderate Buy with nine Buy ratings, 11 Holds, and two Sells. With an average price target of $86.35, Roku stock also offers investors 24.33% upside potential.