10 Advertising & Media Stocks That Could Tank If Recession Hits

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1. Roku, Inc. (NASDAQ:ROKU)

Roku, Inc. is a TV streaming platform operator. It operates in the Devices and Platform segments. The company’s streaming platform enables users to access and find news, TV shows, sports, movies, and similar content. It offers streaming services distribution, digital advertising, sale of streaming players, audio products, and other products and services.

Last month, the firm was upgraded by Bank of America (BofA) with a Buy rating and a price target of $100. The upgrade was based on the company’s strong user base and its growth potential.

Brent Navon, BofA Securities analyst, highlighted the company’s profitability trajectory by saying:

We believe Roku provides an attractive combination of top-line growth, margin expansion, and scaling free cash flow generation

The company’s streaming market share has been growing steadily, and with it, the advertising revenue as well. Like a handful of other streaming stocks, ROKU’s bull thesis also relies on its advertising revenue, and once investors start seeing that slow down, the stock could fall even further.

While we acknowledge the potential of ROKU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ROKU but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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