Roku Stock Price Analysis: The Platform is Becoming Vital for Media Partners

Roku Stock Price Analysis

The pandemic became one of the major reasons for the streaming industry’s boom as it increased the mass adoption of the platforms, meanwhile shedding light on other services like Roku Inc. (NASDAQ: ROKU), lurking under the mainstream sector giants. Recently, ROKU stock price closed with a 1.63% gain on December 9 2022. The company recently announced their partnership with Warner Music Group (WMG).

Can Roku Become The Leading TV Streaming Platform?

The collaboration will introduce three free ad supported streaming channels — WMX Pop, WMX Rock and WMX HipHop. The company said that they will be programmed based on consumer insights. WMG currently owns popular labels including Warner Records, Atlantic Records, Elektra Records and more.

Roku Inc. offers deals in products including smart TVs, smart home, streaming players and more. According to the July 2022 data, the service had over 63 Million active users on the platform. The company has this vision to become the biggest TV streaming platform globally. The initial Roku TV model was introduced in partnership with Netflix in May 2008.

The streaming sector has become a fierce competitor to the theater industry. A large chunk of the world population prefers to watch their favorite movies on popular streaming platforms like Netflix, Amazon Prime, Disney+ and more. According to the data, 83% of US citizens own at least 1 streaming subscription.

Youtube remains the most popular free streaming service currently, with 2.6 Billion active users. Netflix remains on the top paid streaming platform with $209 Million users. Experts believe that this sector holds a potential to become a $100 Billion industry by 2025 considering the increasing popularity.

There are 77% users on YouTube aged 15-25 and 26-35, 73% in the age group  36-45, 70% in 46-55, and 67% above the age of 56. This represents how the streaming services have taken over the devices in the modern world.

Roku Stock Price Analysis

Roku Stock is clearly dominated by the bears this year. The company shares had lost around 78% in their value since January 2022. We can see the buyers becoming active during March 2022 following the earnings report. But the pattern reversed around the Q2 2022 earnings report as the organization missed their revenue estimate.

Investor interest awakened during the latest earning report as Roku stock beheld over 55 Million volume on November 3, 2022. The price has since maintained a consolidated phase. It maintained a support between $45-$46 and a resistance at $52 in November 2022. A price breakout followed by the month’s end has maintained a sideways momentum.

Regression trend shows the price currently roaming inside the seller zone where it may decline if the trend follows. Roku stock was trading at the market price of $51.71 at the publication time. The analysts at TradingView hold a maximum price target of $90 in a year, which potentially points towards optimistic perception in the streaming industry.