[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  DonCorleone77 [@CorleoneDon77](/creator/twitter/CorleoneDon77) on x 5400 followers Created: 2025-07-21 17:42:15 UTC $ROKU Attached is page X of a 8-page Benchmark analyst report on ROKU issued today entitled: "Netflix Take Two or Room to Run?" Benchmark has a 'Buy' rating on ROKU with a $XXX price target. Benchmark's summary statement regarding ROKU in the report includes the following: "Roku (ROKU: Buy, PT $130) is set to report 2Q25 results after the close on Thursday, July 31st. As shares continue to creep back towards the recent 52-week high, the biggest question facing investors is will the print be good enough? As we saw with Netflix last Thursday, even a $XXX million revenue guidance raise + better operating margins was not enough to keep shares from sliding ~5%. There were extenuating circumstances with NFLX, however, with FX driving most of the upside, and engagement, which has been a really strong narrative point at Roku, only growing by 1%. In Roku’s case, we see two primary challenges: 1) we suspect the buy-side is looking for at least 16-17% 2Q platform revenue growth (more than doable in our view); and 2) The ongoing narrative around potential share loss to Walmart (WMT: Not Rated)/Vizio is going to be tough to dispel given how far out that event might be, never mind how long it will take Walmart to transition their ONN TVs, that Walmart is unlikely to transition all of their TVs, and that Roku is taking shelf space at other retailers while cuts get made in the Android ecosystem. We do note that Roku effectively has the equivalent of the Frndly deal in their back pocket if they want to raise guidance assuming a more stable macro (what actually happens on Aug 1-12 is anyone’s guess), and there should be some very modest benefit from Amazon (AMZN: Buy) DSP coming online in 4Q, although we think it will take XX months to really scale and Roku has to lap political for the next X quarters. If consensus were the measuring stick, we would feel confident in Roku posting upside through 2026, but with the short interest cleaned up since the Amazon announcement and buy-side numbers starting to creep higher, Roku has a delicate needle to thread to finally break out of their recent trading range. Longer-term, Roku remains one of our top ideas. -- Valuation Methodology: Given what we see as potential pressure on gross margins due to rising content costs in several forms, we believe blended gross profit is the best indicator of growth and health, and therefore valuation. We estimate gross profit could grow north of XX% sustainably over the longer term but recognize that valuations for streaming players have come in materially. As such, we utilize an 8.5x multiple on our 2026E gross profit to calculate our $XXX price target. -- Investment Risk: ROKU Investment risks include: 1) a dearth of original content; 2) potentially declining SVOD revenue share economics (see Disney+); and 3) a valuation methodology that varies wildly and is largely subjective, in our view." (Page X is not available here as X does not allow me to post pages from reports on this platform) XXX engagements  **Related Topics** [stocks](/topic/stocks) [$roku](/topic/$roku) [stocks communication services](/topic/stocks-communication-services) [$nflx](/topic/$nflx) [Post Link](https://x.com/CorleoneDon77/status/1947351430249210065)
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DonCorleone77 @CorleoneDon77 on x 5400 followers
Created: 2025-07-21 17:42:15 UTC
$ROKU
Attached is page X of a 8-page Benchmark analyst report on ROKU issued today entitled:
"Netflix Take Two or Room to Run?"
Benchmark has a 'Buy' rating on ROKU with a $XXX price target.
Benchmark's summary statement regarding ROKU in the report includes the following:
"Roku (ROKU: Buy, PT $130) is set to report 2Q25 results after the close on Thursday, July 31st. As shares continue to creep back towards the recent 52-week high, the biggest question facing investors is will the print be good enough?
As we saw with Netflix last Thursday, even a $XXX million revenue guidance raise + better operating margins was not enough to keep shares from sliding ~5%. There were extenuating circumstances with NFLX, however, with FX driving most of the upside, and engagement, which has been a really strong narrative point at Roku, only growing by 1%.
In Roku’s case, we see two primary challenges:
we suspect the buy-side is looking for at least 16-17% 2Q platform revenue growth (more than doable in our view); and
The ongoing narrative around potential share loss to Walmart (WMT: Not Rated)/Vizio is going to be tough to dispel given how far out that event might be, never mind how long it will take Walmart to transition their ONN TVs, that Walmart is unlikely to transition all of their TVs, and that Roku is taking shelf space at other retailers while cuts get made in the Android ecosystem.
We do note that Roku effectively has the equivalent of the Frndly deal in their back pocket if they want to raise guidance assuming a more stable macro (what actually happens on Aug 1-12 is anyone’s guess), and there should be some very modest benefit from Amazon (AMZN: Buy) DSP coming online in 4Q, although we think it will take XX months to really scale and Roku has to lap political for the next X quarters.
If consensus were the measuring stick, we would feel confident in Roku posting upside through 2026, but with the short interest cleaned up since the Amazon announcement and buy-side numbers starting to creep higher, Roku has a delicate needle to thread to finally break out of their recent trading range. Longer-term, Roku remains one of our top ideas.
-- Valuation Methodology:
Given what we see as potential pressure on gross margins due to rising content costs in several forms, we believe blended gross profit is the best indicator of growth and health, and therefore valuation. We estimate gross profit could grow north of XX% sustainably over the longer term but recognize that valuations for streaming players have come in materially. As such, we utilize an 8.5x multiple on our 2026E gross profit to calculate our $XXX price target.
-- Investment Risk:
ROKU Investment risks include:
- a dearth of original content;
- potentially declining SVOD revenue share economics (see Disney+); and
- a valuation methodology that varies wildly and is largely subjective, in our view."
(Page X is not available here as X does not allow me to post pages from reports on this platform)
XXX engagements
Related Topics stocks $roku stocks communication services $nflx