Of all the many, many options in streaming out there, it’s easy to forget about Roku (NASDAQ:ROKU), which offers both infrastructure hardware and content for streamers. It’s a big part of the whole concept, even if it doesn’t get a lot of love. And in the closing minutes of Thursday’s trading session, Roku shares were up fractionally after showing off a new system update and some content gains.
The latest system update from Roku, according to a report from The Sun, noted that “hundreds of more channels” have recently been unlocked with the system update. That means access to quite a bit more content, and there was already quite a bit of freely available content on Roku to begin with.
The Roku Channel boasts not only the Roku Originals section for movies and television episodes but also an entire section devoted to kid and family-friendly viewing. In addition, Roku added its new home screen with 4×4 app tiles for added ease of use, and The Roku Channel set up a new deal with distributor BIG Media for over 1,500 hours of new content.
Building on the FAST Concept
While there are some signs that the overall economy may be at least starting to improve, there are still plenty of red flags, starting with still-soaring inflation and people increasingly economizing. That’s got people also reconsidering their streaming services and looking toward FAST (Free Ad-Supported Television) services for relief.
With linear television losing ground and viewers, and streaming services starting to see customers depart due to rising prices, FAST alternatives are taking the opportunity to build their lineups and offer more content. While Roku will have plenty of competitors in this arena, there’s no doubt Roku is a front-runner.
Is Roku a Buy, Hold, or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on ROKU stock based on eight Buys, seven Holds, and three Sells assigned in the past three months, as indicated by the graphic below. After a 1.82% loss in its share price over the past year, the average ROKU price target of $74.88 per share implies 30.7% upside potential.
