As an advertiser, streamer, and hardware provider, Roku’s in a unique position in the streaming landscape. That’s part of the reason why Wall Street analysts are largely divided on Roku’s future as it gets into the TV-making business and other companies cut back on ad spending:
MoffettNathanson analysts (who have a $38 price target) see Roku being negatively impacted by the larger pressures facing streaming companies. The stock had been artificially propped up by the streaming wars, these experts argue, which led all the major media companies to spend on content and marketing in pursuit of subscriber numbers.
This ultimately benefited Roku’s platform and advertising business. But now, the tides have turned as companies such as Disney, Warner Bros. Discovery and AMC Networks look to cut spending.
[The Hollywood Reporter]
