Roku (ROKU) has long been a name to work with in the streaming market, especially since it provides both hardware and content. Now, it has taken a substantial step forward in a bid to address some of its biggest competitors in the space. Investors were skeptical, however, and shares slipped fractionally in the closing minutes of Thursday’s trading.
The new Ultra device is geared toward making Roku a stronger force in streaming, and will actually represent the first new device it has released in 2024, according to GB News. The new box includes a passel of upgrades, starting with a new, backlit remote control—the old ones offered no lighting at all, which is a huge plus for anyone going for that full home-theater setup—and USB-C charging.
Roku also noted that the Ultra is actually 30% faster than its predecessors, so that means faster loading of TV shows and movies, a comparative benefit. The new device will be available for $99, reports note. But before that comes out, there will also be an update to the RokuOS software platform. That will also bring several improvements along for the right, starting with modified voice commands and a complete hub of family-friendly content. Reports note the Kids & Family hub will have around 50,000 shows to its credit, ensuring that the kids have something worth watching on the platform.
The TVs alone Are Pulling in Viewers
In an unexpected twist, we also found out something noteworthy from People, who discussed the new Philips Roku TV model coming out. In the course of talking about the television’s features and how it was on sale, one particular point jumped out: “Shoppers raved about the sound and picture, noting that they no longer need cable because the apps are all in one place.”
That right there should send a chill down every cable provider and linear network’s spine. We all know that cable cutting has been a growing movement for some time now. For Roku to be able to make the experience so seamless that it makes people interested in ditching cable is an incredible advancement for Roku. And a serious potential drawback to the cable networks.
Is ROKU Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on ROKU stock based on nine Buys, eight Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 9.02% rally in its share price over the past year, the average ROKU price target of $77.13 per share implies 4.58% upside potential.
