Roku

Roku just crossed 100 million streaming households worldwide, and nearly half of all TV streaming in the US now happens on its platform. In the first quarter of 2026 revenue grew 22 percent to 1.25 billion dollars, advertising revenue jumped 27 percent, and video ad impressions soared 59 percent. It has become the place advertisers go to reach people who have cut the cord.

For years Roku grew its users but lost money. That has flipped. Adjusted earnings jumped 165 percent last quarter, the company holds about 2.4 billion dollars in cash with almost no debt, and it generated 539 million dollars in free cash flow over the past year. Management raised its full-year revenue target to about 5.5 billion dollars and is aiming for 1 billion dollars in yearly free cash flow by 2028.

Roughly 90 percent of Roku's revenue now comes from its platform, and a large chunk of that is advertising. If the economy slows and advertisers cut their budgets, Roku's growth could stall quickly. It is heavily exposed to the ups and downs of the ad market.

The stock has nearly doubled off its lows and trades at a rich valuation of more than 20 times expected earnings, while net margins are still thin at about 4 percent. Roku also makes no exclusive shows of its own, so it leans on big partners like Amazon and Google keeping their content on its platform. The shares can swing hard, so expect a bumpy ride.