Roku, Inc. (ROKU) Stock Analysis

Roku’s primary competitive advantage lies in its position as the leading TV streaming platform in the U.S., Canada, and Mexico by hours streamed. As of year-end 2024, Roku devices were present in 89.8 million streaming households, with 127.1 billion streaming hours logged—outpacing Amazon Fire TV, Apple TV, and Google Chromecast in both engagement and reach. Roku’s proprietary operating system (Roku OS) is purpose-built for television, enabling a user-friendly interface and seamless integration across a wide range of low-cost devices and smart TVs. This “home screen ownership” allows Roku to influence content discovery and advertising, a position not matched by most rivals.

Roku’s scale and first-party data underpin its advertising platform, which is a key revenue driver. The company’s ad-supported Roku Channel is consistently ranked among the top three streaming apps by engagement in the U.S., and Roku’s platform revenue grew 18% year-over-year in Q2 2025, outpacing the broader market.

Unlike device-focused competitors (e.g., Apple, Google), Roku’s business model is platform-centric, monetizing both hardware and ongoing user engagement. However, the company faces threats from vertically integrated rivals with greater resources—Amazon, in particular, can leverage its e-commerce and content ecosystem. Roku’s lack of direct content ownership is a relative weakness, but its neutral platform status appeals to a broad set of content partners and advertisers. The company’s culture emphasizes rapid innovation and cost discipline, supporting its ability to adapt in a highly competitive, fast-evolving market.