Roku Trades Near 52-Week High as Platform Revenue Rises 28%
AMZN•Roku’s stock has jumped 78% in the last year to sit near its 52-week high, trading at a P/E of 87.6 versus the S&P 24.0 and a cash-flow multiple of 32.4. Its Platform revenue rose 28% year-over-year while Devices revenue fell 16% with a 14% negative margin.
1. Stock Performance and Valuation
Roku’s share price has surged 78% over the past year, placing it near the top of its 52-week range. The stock commands a P/E ratio of 87.6, more than three times the S&P 500’s 24.0, and a cash-flow multiple of 32.4.
2. Platform Segment Growth
The high-margin Platform segment delivered 28% year-over-year revenue growth, driven by a 27% increase in advertising and a 30% jump in subscription revenue as Roku expands partnerships with Apple TV and Peacock. The user base has surpassed 100 million streaming households.
3. Devices Segment Drag
The Devices segment saw a 16% revenue decline and operated at a negative 14% margin due to falling hardware prices and higher memory costs. Roku continues to use its loss-making streaming players and branded TVs to onboard new households for its profitable Platform business.
