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Pivotal Research Raises its Price Target on Roku, Inc. (ROKU) to $140 and Maintains a Buy Rating

Roku, Inc. (NASDAQ:ROKU) is among the 11 Best Entertainment Stocks to Buy According to Wall Street.

On February 16, 2026, Pivotal Research raised its price target on Roku, Inc. (NASDAQ:ROKU) to $140 from $135 and maintained a Buy rating, describing the company’s fourth-quarter report as strong and better than expected. The firm also highlighted Roku’s “Switzerland-like positioning” within the streaming ecosystem.

On February 13, 2026, Oppenheimer increased its price target to $120 from $105 and kept an Outperform rating following quarterly results. The firm noted that Roku is guiding fiscal 2026 Platform revenue 2% to 4% above its prior estimates and Street expectations, and said third-party partnerships are expected to ramp through fiscal 2026, with Amazon not yet meaningful to revenue but representing a potential fiscal 2027 tailwind. That same day, UBS raised its price target to $110 from $103 and maintained a Neutral rating, citing solid results and initial 2026 guidance that came in ahead of Street estimates.

Roku, Inc. (NASDAQ:ROKU) reported fourth-quarter revenue of $1.39 billion on February 12, 2026, above the $1.35 billion consensus estimate. For fiscal 2025, total net revenue reached $4.737 billion, up 15% year over year, while Platform revenue rose 18% to $4.145 billion. Gross profit increased 15% to $2.074 billion, and streaming hours grew 15% to 145.6 billion. The company said it delivered positive net income, expanded Adjusted EBITDA margin by 255 basis points, and generated record trailing twelve-month free cash flow. Roku repurchased $150 million of shares under its $400 million buyback program and said it expects to sustain double-digit Platform revenue growth in 2026 while continuing to expand operating and net income margins.

Roku, Inc. (NASDAQ:ROKU) operates a TV streaming platform through its Platform and Devices segments in the United States and internationally.

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 have limited downside risk. If you are looking for an AI stock that is more promising than ROKU and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 10 Most Profitable Undervalued Stocks to Buy and 11 Best Mining Stocks to Buy According to Wall Street.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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