Roku slides after forecasting slower Q4 revenue growth

Roku

31/10/2025 09:50

** Shares of streaming platform Roku ROKU.O down 5.85% at $94.18 in premarket trading after co forecasts slower revenue growth for Q4

** Co expects Q4 revenue growth of 12%, below 14% in Q3 and 15% in Q2

** Roku forecasts Q4 revenue at $1.35 bln vs analysts’ average estimate of $1.32 bln

** Q3 total revenue came in at $1.21 bln, in line with analyst estimates

** Co says platform segment growth seen slowing to 15%

** Roku faces stiff competition in ad-supported streaming from Amazon AMZN.O, Google GOOGL.O and Apple AAPL.O

** J.P.Morgan lifts PT on co to $115 from $105, saying Q4 outlook supports its 2026 bull case, helped by ad partnership with Amazon, new homescreen and World Cup tailwinds

** On the other hand, Jefferies notes the lack of Q3 upside may keep shares range-bound despite strong platform growth outlook

** 20 out of 33 analysts rate the stock "buy" or higher, 12 "hold" and one "sell"; median PT at $110 - data compiled by LSEG

** Stock down 8.38% YTD, as of last close

(Reporting by Tharuniyaa Lakshmi in Bengaluru)

((tharuniyaa@thomsonreuters.com))