42/100Is ROKU-ROKU, a buy?
Saturday 13 June 2026
Why now: This is not a good “why now” setup: the stock is below its key resistance level and the scan shows no confirmed breakout, no hold above resistance, and below-average trading volume. The only near-term reason to pay attention is that recent results show sharply improved profitability and cash generation, which can matter if the tape improves later.
Upside: If Roku sustains double-digit platform growth and keeps generating strong free cash flow through the next few quarters, a re-rating toward prior cycle valuations could support meaningful upside from here. Upside is real, but it is not clean enough to underwrite a confident long-term buy at today’s price without a stronger trend and more proof that growth is not event-driven.
Risks: Advertising demand can weaken quickly in a downturn, and Roku’s platform revenue is still tied to ad budgets and partner behavior. The stock also remains volatile, and today’s technical profile does not support a high-conviction entry.
Sign up or log in for access
Unlock the full scorecard, detailed analysis, and research notes. Free, no credit card needed.
Scorecard
| Scorecard | 42/100 | |
|---|---|---|
| Company Detail | ROKU, ROKU, INC. | |
| Price as at 12 June 2026 | $143.66 | |
| Market cap | $21.2B | |
| Quality and Fundamental Score (100) | ||
| Breakout / Early-Momentum /20 | 2/20 | |
| Rev/EPS Momentum /20 | 14/20 | |
| Business Quality /15 | 9/15 | |
| Balance Sheet /15 | 13/15 | |
| Valuation /10 | 2/10 | |
| Industry Relative Strength /10 | 0/10 | |
| Macro / Sector Tailwind /10 | 2/10 | |
| Growth | ||
| Cash runway | Cash generative | |
| Revenue YoY | +15.2% | |
| EPS YoY | +166.3% | |
| FCF YoY | +124.6% | |
| Gross margin | 43.8% | |
| Valuation & Trend | ||
| Trailing P/E | 106.4x | |
| Forward P/E | 40.3x | |
| RSI (14d) | 69 | |
| vs 50d SMA | +20.5% | |
| Support cushion | −16.8% | |
| Sentiment | ||
| Wall Street verdict | Aligned | |
| News tone | Mixed | |
| Dividend | — | |
How are these colored?
| Metric | Strong metrics | Solid metrics | Selective | Caution | Unfavourable |
|---|---|---|---|---|---|
| Overall score | ≥ 80 | 70-79 | 60-69 | 50-59 | < 50 |
| Business quality /15 | ≥ 12 | 10-11 | 8-9 | 6-7 | < 6 |
| Balance sheet /15 | ≥ 12 | 10-11 | 8-9 | 6-7 | < 6 |
| Market cap | ≥ $20B | $5B-$20B | $2B-$5B | $1B-$2B | < $1B |
| Cash runway | ≥ 3 yr or cash generative | 1.5-3 yr | 0.75-1.5 yr | 0.25-0.75 yr | < 0.25 yr |
| Revenue YoY | ≥ 15% | 5-15% | 0-5% | -5-0% | < -5% |
| EPS YoY | ≥ 20% | 5-20% | 0-5% | -5-0% | < -5% |
| FCF YoY | ≥ 10% | 1-10% | 0-1% | -5-0% | < -5% |
| Gross margin | ≥ 60% | 40-60% | 25-40% | 10-25% | < 10% |
| Trailing P/E | < 15 | 15-25 | 25-35 | 35-40 | > 40 or neg |
| Forward P/E | < 15 | 15-25 | 25-35 | 35-40 | > 40 or neg |
| RSI (14d) | 50-70 | 45-50 or 70-75 | 40-45 or 75-78 | 30-40 or 78-80 | < 30 or > 80 |
| vs 50d SMA | +2% to +15% | 0-2% or 15-25% | -2-0% or 25-35% | -3, 2% or 35-40% | < -3% or > 40% |
| Support cushion | 2-10% above | 0-2% | 10-15% | 15-20% | price below support |
| Wall Street verdict | Aligned | — | Mixed | — | Disagrees |
| News tone | Positive | — | Neutral / Mixed | — | Negative |
| Dividend | Yield ≥ 2% & growing | Growing | Flat payer ≥ 1% | Low / flat | Cutting |
Detailed Analysis, Saturday 13 June 2026
Anthony Wood has served as Roku’s founder and Chief Executive Officer since 2002.
Dan Jedda became Roku’s Chief Financial Officer effective May 1, 2023.
- Roku is a leading connected television platform with strong recent progress on profitability and cash generation, and it has a real long-term tailwind as ad dollars keep shifting to streaming.
- The balance sheet looks strong and gives the company time to execute.
- The problem today is the stock setup and the reliability of growth: the chart is not in a breakout state and volume is muted, so the risk of dead money or a fast reversal is high even if the business is improving.
Show 2 headlines from the last 7d
Scores 42 out of 100, a mixed overall grade. Balance sheet scored highest. Earnings trend and business quality were fair but not standout drivers. Valuation and sector fit weighed on the total. The stock does not meet the stated setup gate for a published top pick: it is not in a confirmed breakout state, it has no heartbeat hold above resistance, volume is below baseline, and the mechanical pre-breakout score is weak. I am treating this as a fundamental review only, not as a “buy now.”
Component scores are on the scorecard above.
- The trend is better than it was earlier in the cycle, with the price well above both the 50-day and 200-day moving averages and the 200-day moving average rising.
- However, it is still below the key resistance level around $133 and the scan shows no breakout condition, no confirmed hold above resistance, and below-baseline volume, which is not the profile of a fresh leadership move.
- Roku reported a sharp improvement in Q1 2026, including a return to profitability and significantly higher cash generation, alongside strong platform revenue growth year over year.
- Platform revenue grew strongly and remains the core driver, while the devices business declined year over year, reinforcing that hardware is not the growth engine.
- On the balance sheet, the company reported about $1.65 billion of cash and cash equivalents at March 31, 2026, and it appears to have ample liquidity for investment and cyclicality.
- The key red flag is that Roku’s results can be sensitive to advertising cycles and big event timing, so investors should not assume one strong quarter automatically means a stable multi-year growth rate.
Cash runway: Cash generative (latest annual free cash flow is positive).
Upcoming (1-6 months)
- Next quarterly earnings update (expected timing late July 2026 based on last year’s cadence; confirm when the company announces the date).
Ongoing
- Whether platform revenue growth stays strong while free cash flow remains consistently positive, even without unusually large event-driven ad demand.
Risks
- A downturn in advertising demand, or platform competition and distribution changes, could reduce platform revenue growth and pressure margins.
Breaks the thesis
- If the stock fails to reclaim and hold above $133.38 on improving volume and instead rolls over back below its rising trend (especially if it loses the 50-day moving average), the market is signaling the improving fundamentals are not being rewarded.