Is ROKU Stock a Buy on Earnings Plunge? 3 Analysts Weigh In on Roku Price Predictions.

Roku (NASDAQ:ROKU) stock is down 25% after the company issued fourth-quarter revenue and first-quarter guidance that was below analysts’ expectations.

ROKU Stock Will Continue Benefitting From the TCL Partnership
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So what do you need to know about the plunge in the video-streaming company?

Well, Roku reported earnings per share of 17 cents, nearly double the 9 cents that analysts were expecting. The Q4 revenue story was not so bright, with the company reporting revenue of $865.3 million against estimates for $894 million.

Although revenue was up 33% year over year, it seems growth is slowing down. Q3 revenue was a 51% increase while Q2 revenue was up 81% YOY.

What Happened With ROKU Stock

Beyond slowing growth in Q4, Roku also spooked Wall Street with its guidance.

The company called for $720 million in first-quarter revenue, which would represent 25% YOY growth. Analysts were expecting higher growth, with revenue of $748.5 million. For the full year, Roku now expects growth in the mid-30% range. Analysts wanted 36% growth for 2022.

Roku stock is now trading at its lowest point since June 2020. During yesterday’s trading session, ROKU stock declined roughly 10%.

Given today’s big decline, is now an opportune time to buy shares? Here are three price predictions from top analysts.

Roku Price Predictions

  1. Bank of America maintains a “buy” rating on ROKU stock and a $290 price target, which would be 160% higher than yesterday’s closing price.
  2. Needham also has a “buy” rating on shares of Roku and a price target of $205 a share, which implies 84% upside.
  3. Wedbush too maintains a “buy” rating on ROKU stock and offers a $150 price target, which would be 34% higher.

Among 25 professional analysts who cover Roku, the median price target on the stock is currently $282.50, which would be 160% higher than current levels. However, many of those price targets came before the company’s Q4 numbers were released. Some revisions might be forthcoming.

On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


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