What's Going On With Roku Stock Friday?

Roku, Inc. ROKU shares are trading lower on Friday after the company issued guidance below estimates.

What To Know: Roku expects second-quarter sales of $1.07 billion, versus the consensus estimate of $1.09 billion. Device revenue is expected to remain consistent with 2024 levels, but tariff-related impacts remain difficult to project.

For the full year, Roku cut its sales guidance to $4.55 billion, versus the consensus estimate of $4.57 billion. Furthermore, the company projected platform revenue to increase 14% year-over-year and device revenue to decline 10% year-over-year.

In the company’s letter to shareholders it said, “While there is more macro uncertainty than normal, we are providing our best outlook based on our current visibility and what we are observing in our business.”

Analyst Changes: Following the earnings report, multiple analysts lowered their price targets.

• Rosenblatt analyst Barton Crockett maintained a Neutral rating on Roku and lowered the price target from $100 to $75.
• Evercore ISI Group analyst Shweta Khajuria maintained an In-Line rating on Roku and lowered the price target from $105 to $80.

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ROKU Price Action: At the time of writing, Roku shares are trading 6.36% lower at $62.99, according to data from Benzinga Pro.

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