Now Streaming: Roku reports upbeat Q4 results

“Now Streaming” is The Fly’s weekly recap of the stories surrounding the biggest content streamers.

PLAYING THIS WEEKEND: Among this weekend’s new streaming content is the first episode of season three of comedy-drama “The White Lotus,” which premieres on February 16 on HBO and Max (WBD). Meanwhile, new episodes of “Love is Blind” and “Cobra Kai” are available this weekend on Netflix (NFLX), while Apple TV+ (AAPL) original science fiction film “The Gorge,” starring Miles Teller and Anya Taylor-Joy, releases February 14. In addition, romantic comedy film “Bridget Jones: Mad About the Boy,” starring Renee Zellweger and Chiwetel Ejiofor, is available to stream on Peacock (CMCSA).

ROKU RESULTS: This week, Roku (ROKU) reported better-than-expected Q4 earnings and revenue, with the company reporting 25% year-over-year growth in platform revenue. “We also continue to expand our penetration in the U.S., which has surpassed half of broadband households. In Q4, Streaming Hours on The Roku Channel grew 82% YoY, and in the U.S. it reached households with approximately 145 million people,” the company said. “We continue to make progress growing ad demand through deeper third-party platform integrations, improving the Roku Experience (which starts at our Home Screen) to expand monetization, and growing Roku-billed subscriptions. As we look ahead, we see clear paths to growing our KPMs of Streaming Hours, Platform revenue, Adjusted EBITDA, and Free Cash Flow. In addition, we expect to be operating income positive for full year 2026.” Looking ahead, the company provided Q1 and FY25 revenue guidance that is largely in line with consensus.

Following the report, Pivotal Research upgraded Roku to Buy from Hold with a price target of $125, up from $65. Likely benefiting from Netflix’s “huge” Q4 subscriber result, Roku reported solid net new active accounts in Q4, the analyst tells investors in a research note. The firm believes Roku’s “best-in-class” product, solid 2025 setup, already large North American market share and a successful international expansion position the stock for continued success “that does not appear to be properly valued by the market.” Pivotal says its new price target represents material upside from current levels, even with last night’s post-earnings rally.

Meanwhile, Wells Fargo upgraded Roku to Overweight from Equal Weight with a price target of $129, up from $74, post the Q4 report. The firm cites the company’s “visible” growth acceleration and “structural political tailwind” for the upgrade. Wells left Roku’s Q4 report “much more bullish” on the stock’s forward upside potential driven by inventory growth, home screen innovation and political tailwinds in 2026 and 2028.

JPMORGAN STILL POSITIVE ON NETFLIX: JPMorgan said in a note yesterday that Netflix shares are up 18% since the “strong” Q4 earnings report, driven by confidence in the company’s 2025 revenue growth outlook, “robust” 2025 content slate, and its strengthening leadership position in streaming. The firm expects Netflix’s 2025 revenue growth to be driven by strong engagement and organic subscriber growth, along with average revenue per membership growth through recent price increases. It remains positive on the shares with an Overweight rating and $1,150 price target.

NETFLIX APPLE TV SUPPORT: Certain Apple TV 4K users in the U.S. are being prompted to link their Netflix accounts to the Apple TV app, in what seems to signal an end to Netflix’s longtime refusal to have its content aggregated into third-party platforms, The Verge’s Jess Weatherbed reported Friday. Subscribers who connect their accounts are able to add certain Netflix originals, including “Squid Game” and “Stranger Things,” to their Apple TV app watchlist, the author says, noting that it has also been verified that Netflix is now listed as a participating service within the Apple TV app.

APPLE TV/ANDROID: Apple (GOOG) on Android mobile devices – including phones, tablets, and foldables – offering Android users access to Apple Original series and films on Apple TV+, along with MLS Season Pass, the home of Major League Soccer.

STOCK PLAYS: Other publicly traded companies in the space include Fox (FOXA), Fubo (FUBO), Paramount (PARA), Amazon (AMZN), and Disney (DIS).