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Roku: New Highs, No Problem

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Update - June 12, 2026

Not sure how the Roku OS works inside another media company, but a buyout could be a good opportunity to cash out on big gains. The stock wasn't overly cheap anymore. 

-Roku Inc. (ROKU) soared 20% on a report that the streaming video platform is in discussions to sell itself.
-Roku has been in talks with at least one US media company about a potential deal, according to a Bloomberg report on Friday, which cited people familiar with the matter.

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Original article posted on May 2

  • Roku, Inc. has surged to $125 as platform revenues grew at a robust 28% YoY clip in Q1'26, driving bullish sentiment.
  • ROKU's business mix shift to high-margin platform revenue (now 90% of total) has yielded a 165% YoY jump in adjusted EBITDA.
  • Management targets $5.5B in revenue and $675M in EBITDA in 2026, with free cash flow expected to reach $1B by 2028.
  • While the stock is no longer a bargain at 23.5x '26 EV/EBITDA targets, its strong execution and growth make it a solid buy on dips.
Only a few months ago, Roku, Inc. (ROKU) finally broke $100 after nearly 4 years and has now zoomed to $125. The streaming platform continues to execute while the market doubted the ability to produce sustainable growth in an increasingly competitive sector. My investment thesis remains Bullish on the stock, though Roku is no longer a massive bargain.


Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please review the disclaimer page for more details.

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