Is ROKU a good stock to buy? We came across a bullish thesis on Roku, Inc. on TradersPro’s Substack. In this article, we will summarize the bulls’ thesis on ROKU. Roku, Inc.’s share was trading at $143.66 as of June 12th. ROKU’s trailing and forward P/E were 106.41 and 61.73 respectively according to Yahoo Finance.
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Roku, Inc. (ROKU) is positioned as one of the leading connected TV platforms in the United States, operating a widely adopted streaming ecosystem that includes streaming devices, smart TV operating systems, and The Roku Channel, a free ad-supported content platform.
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The company effectively converts traditional television sets into digital streaming hubs, with its core value increasingly driven not by hardware sales but by its advertising and platform monetization capabilities. Roku’s platform business benefits from a growing installed base of households, expanding app integrations, and increasing engagement, which together create a larger inventory of ad-supported streaming minutes.
The investment thesis is being strengthened by a structural shift in advertising budgets away from linear cable television toward connected TV, where Roku holds a dominant distribution position inside the living room. The company’s advertising reach is further expanding through new partnerships and integrations that enhance demand-side access for marketers.
A key catalyst is its exclusive advertising partnership with Amazon, which enables advertisers to leverage Amazon’s rich shopping and purchase intent data to target viewers more precisely and measure real-world conversions from TV advertising. This transforms Roku’s ad inventory into a performance-driven channel rather than purely brand exposure, improving monetization potential and advertiser demand. Seasonal tailwinds from political advertising during election cycles provide an additional near-term boost to revenue visibility.
From a market perspective, momentum indicators suggest strengthening buyer participation, with price action reflecting increased conviction and broader institutional engagement rather than narrow speculative flows. As streaming continues to displace traditional cable, Roku’s position as a gatekeeper of TV screen time supports a durable long-term growth runway.
The combination of rising ad loads, improved targeting capabilities, and platform scale positions Roku to re-rate as a higher-quality ad-tech compounder, with meaningful upside potential as connected TV advertising continues to expand globally.
Previously, we covered a bullish thesis on Roku, Inc. (ROKU) by LongYield in May 2025, which highlighted strong Q1 growth, rising platform revenue, expanding advertising monetization, and improving profitability with Adjusted EBITDA guidance of $350 million. ROKU’s stock price has appreciated by approximately 137.76% since our coverage. TradersPro shares a similar view but emphasizes the Amazon-exclusive advertising partnership and structural shift toward performance-driven connected TV ads as the key catalyst for further rerating.
Roku, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 68 hedge fund portfolios held ROKU at the end of the first quarter which was 76 in the previous quarter. While we acknowledge the risk and 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. If you are looking for an AI stock that is more promising than ROKU and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
