3 Reasons to Buy Roku Stock Like There's No Tomorrow

Key Metrics
Roku's performance metrics are strong. In the first quarter of 2024, revenue jumped 19% year-over-year, following an 11% increase in 2023. The user base grew to 81.6 million active accounts, a 14% rise from the previous year. Engagement remains high, with 30.8 billion hours of content watched in Q1. Although average revenue per user dropped to $40.65, it appears to be stabilizing.

Industry Position
Roku is well-positioned in the streaming industry, benefiting from the cord-cutting trend as consumers shift from traditional cable-TV to streaming. Less than half of U.S. households still have cable subscriptions. Roku's user interface enhances the streaming experience by combining various content offerings. The platform's growth is fueled by content companies like Netflix and Disney investing billions in streaming content.

Ad Market
Roku's platform segment, which includes advertising revenue deals, grew sales by 19% in Q1 to $755 million, representing 86% of total revenue. Despite economic concerns in 2022, Roku's ad revenue growth outperformed the overall ad market and traditional TV ad market. As more ad dollars shift from traditional TV to streaming, Roku is poised for continued growth, supporting solid top-line prospects.