Roku's Amazon Ads Partnership

Early Bird Prime for June 22, 2025

Roku $ROKU ( ▼ 0.54% ) is like the Swiss Army knife of TV streaming. And this year, Roku's stock is up 8.73%, which is good but not particularly impressive.

This past week, Roku decided to buddy up with Amazon $AMZN ( ▼ 1.33% ) Ads and form a powerful partnership. Together, they're giving advertisers access to the largest authenticated CTV footprint in the U.S. through Amazon DSP. With an estimated 80 million U.S. Connected TV households in their grasp, they're practically the kings of the streaming kingdom.

As a result, Loop Capital just upgraded Roku from Hold to Buy, raising its price target to a cool $100.00. 

But before you start throwing your money at Roku’s stock, let's take a closer look at the fine print.

Roku isn't exactly rolling in dough. It's not profitable at all, with a negative earnings per share over the last twelve months. And with a negative return on invested capital (ROIC) that's below its weighted average cost of capital (WACC), Roku's stock seems challenging.

Meanwhile, Roku's user growth domestically in North America is hitting a wall. Where does Roku go from here? 

Should you invest in Roku in 2025 or avoid the stock right now? Here’s the answer:

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