PUBM - Is Roku Stock a Buy Now?
2024-02-11 11:13:00 ET
Some might say that the buying window for Roku (NASDAQ: ROKU) stock is closing. Shares of the media-streaming technology pioneer have gained roughly 70% in less than four months. By comparison, the S&P 500 (SNPINDEX: ^GSPC) index gained 20% over the same period. Wall Street analysts aren't excited about this stock, and the average price target sits 7% below Roku's current price. And the company isn't even profitable, so how high can that stock chart go anyway?
Despite these perfectly reasonable misgivings, I still see a neon sign in Roku's stock, flashing "buy me now" messages for the world to see. Let me explain why my view of Roku differs from the lukewarm market mood. Please take notes because you may want to buy some Roku stock at the end of it all.
Roku's stock may have surged recently, but it's actually down by a hair-raising 78% over the last three years. While the stock market as a whole struggled in 2022 and soared in 2023, the inflation crisis unleashed a persistent downturn in the digital advertising market. As a leading provider of digital ad space, Roku saw its stock lumped together with digital marketing specialists such as Magnite (NASDAQ: MGNI) and PubMatic (NASDAQ: PUBM) . This group of next-generation advertising stocks didn't get to participate in the S&P 500's 28% gain over the last three years:
For further details see:
Is Roku Stock a Buy Now?