Roku (NASDAQ:ROKU) Trading Down 1.3% – Here’s What Happened

10 Jan 2026, 21:36 by Danessa Lincoln · The Markets Daily

Roku, Inc. (NASDAQ:ROKU – Get Free Report) dropped 1.3% during mid-day trading on Thursday . The stock traded as low as $108.40 and last traded at $108.86. Approximately 3,260,576 shares were traded during mid-day trading, an increase of 15% from the average daily volume of 2,842,072 shares. The stock had previously closed at $110.30.

Key Roku News

Here are the key news stories impacting Roku this week:

Positive Sentiment: Evercore upgraded ROKU to Outperform and said the stock can rise roughly 31%, highlighting stronger monetization and upside from ad & subscription initiatives. This upgrade and the bullish note likely boosted investor optimism and buying interest. Roku Stock Can Rise Another 31%, Analyst Says Analyst Note on Upside
Positive Sentiment: Roku is expanding its $3/mo ad-free channel “Howdy” beyond Roku devices, signaling a push to scale subscription revenue and compete cross-platform — a clear monetization lever investors favor. Roku’s $3 streaming service Howdy will be coming to other platforms, CEO says Roku is expanding this paid feature to more devices
Positive Sentiment: Consensus analyst rating updated to “Moderate Buy,” reinforcing a constructive sell-side view that can support further inflows from institutional and retail investors. Roku Receives Consensus Rating of “Moderate Buy”
Neutral Sentiment: CEO remarks covered new strategic bets (including predicting an AI‑generated hit movie within ~3 years) and reiterated product moves; these are forward‑looking but speculative and may matter more for longer-term sentiment than immediate earnings. Roku CEO Talks New $3/Month Ad-Free Streamer, Predicts First ‘100% AI-Generated Hit Movie’
Negative Sentiment: Insider selling was reported in multiple notes and has coincided with intraday weakness in the stock; while insider sales aren’t always a signal of company health, they can trigger short-term selling pressure and amplify volatility. Roku Shares Down on Insider Selling Roku Trading Down Following Insider Selling

Analyst Ratings Changes

ROKU has been the subject of a number of recent analyst reports. KeyCorp reissued an “overweight” rating and issued a $116.00 price objective on shares of Roku in a research report on Tuesday, October 28th. Guggenheim increased their price target on Roku from $110.00 to $115.00 and gave the company a “buy” rating in a research note on Thursday, December 4th. Morgan Stanley set a $135.00 price target on Roku and gave the stock an “overweight” rating in a research note on Tuesday, December 16th. Wells Fargo & Company restated an “overweight” rating on shares of Roku in a report on Monday, January 5th. Finally, Rosenblatt Securities lifted their target price on shares of Roku from $101.00 to $106.00 and gave the stock a “neutral” rating in a research note on Friday, October 31st. Twenty-three investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, Roku presently has a consensus rating of “Moderate Buy” and an average price target of $118.12.

Check Out Our Latest Research Report on Roku

Roku Stock Performance

The company has a market cap of $16.43 billion, a price-to-earnings ratio of -555.82 and a beta of 1.95. The company’s fifty day moving average is $104.14 and its two-hundred day moving average is $97.17.

Roku (NASDAQ:ROKU – Get Free Report) last released its quarterly earnings data on Thursday, October 30th. The company reported $0.16 EPS for the quarter, beating the consensus estimate of $0.07 by $0.09. Roku had a negative net margin of 0.61% and a negative return on equity of 1.08%. The business had revenue of $1.21 billion for the quarter, compared to the consensus estimate of $1.21 billion. During the same period in the prior year, the firm earned ($0.06) EPS. The business’s revenue for the quarter was up 14.0% on a year-over-year basis. On average, sell-side analysts anticipate that Roku, Inc. will post -0.3 EPS for the current fiscal year.

Insider Activity

In other news, CEO Anthony J. Wood sold 50,000 shares of the stock in a transaction dated Monday, November 10th. The shares were sold at an average price of $103.86, for a total transaction of $5,193,000.00. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Dan Jedda sold 3,000 shares of the firm’s stock in a transaction dated Monday, November 17th. The shares were sold at an average price of $99.09, for a total value of $297,270.00. Following the sale, the chief financial officer owned 77,420 shares in the company, valued at $7,671,547.80. This trade represents a 3.73% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 318,282 shares of company stock valued at $34,335,889. 13.98% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. AQR Capital Management LLC raised its holdings in shares of Roku by 275.5% during the third quarter. AQR Capital Management LLC now owns 2,586,125 shares of the company’s stock valued at $258,897,000 after acquiring an additional 1,897,407 shares during the last quarter. Tableaux LLC acquired a new position in shares of Roku in the 2nd quarter valued at $1,746,000. Holocene Advisors LP boosted its stake in Roku by 352.3% during the third quarter. Holocene Advisors LP now owns 1,650,448 shares of the company’s stock worth $165,259,000 after buying an additional 1,285,585 shares during the period. Acadian Asset Management LLC boosted its position in shares of Roku by 41.2% during the 2nd quarter. Acadian Asset Management LLC now owns 2,691,643 shares of the company’s stock worth $236,545,000 after purchasing an additional 785,864 shares during the period. Finally, Duquesne Family Office LLC boosted its position in shares of Roku by 123.0% during the second quarter. Duquesne Family Office LLC now owns 1,100,500 shares of the company’s stock worth $96,723,000 after buying an additional 606,900 shares during the period. 86.30% of the stock is owned by hedge funds and other institutional investors.

About Roku

(Get Free Report)

Roku, Inc (NASDAQ: ROKU) is a technology company that develops and operates a proprietary streaming platform designed to deliver entertainment content to consumers via internet-connected devices and smart televisions. Since its inception in 2002 in California, Roku has focused on simplifying access to streaming services for viewers worldwide. The company’s platform enables users to discover, access and manage a wide array of over-the-top content from major streaming services, free ad-supported channels and niche providers.

At the core of Roku’s product lineup are a range of streaming players and sticks, which connect to televisions via HDMI and deliver the Roku OS experience.