The Worst Is Behind It, but Is Roku Stock a Buy?
(NASDAQ: ROKU) had a very difficult stretch operationally that started in the second quarter of 2022 due to a weak advertising market. Over the next year, the company consistently reported negative adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) until it broke the streak in the third quarter of 2023.
Since then, Roku has been back on track, reporting positive adjusted EBITDA and generating positive free cash flow. Its recently reported first-quarter results continued this trend, showing that the worst is behind the company.
However, Roku's overall metrics still have been quite mixed, and the stock is still down about 45% from its 52-week high. That begs the question: While the worst is behind Roku, does that make the stock a buy? Let's take a look at the good and the bad.
Source Fool.com
Roku Stock
Our community is currently high on Roku with 27 Buy predictions and 7 Sell predictions.
As a result the target price of 93 € shows a very positive potential of 64.75% compared to the current price of 56.45 € for Roku.
