Roku (ROKU) Is Up 5.5% After Launching First Smart Projector Is Its Streaming Ecosystem Expanding?

• In September 2025, Roku, Inc. launched the first-ever Roku TV smart projector in the US, bringing the Roku OS and streaming experience to a portable home entertainment device with features including auto focus, wireless compatibility, and seamless integration with Roku’s broader ecosystem.
• This product debut highlights Roku’s push into new connected entertainment formats, aiming to extend its operating system and boost user engagement beyond traditional smart TVs.
• We'll now examine how Roku's move into smart projectors could influence its investment narrative and future growth assumptions.

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Roku Investment Narrative Recap

To be a Roku shareholder, you need to believe in the company’s ability to expand its platform through new devices and content experiences, capitalizing on the shift from linear TV to streaming. While the launch of Roku’s first smart projector broadens its ecosystem and could enhance user engagement, it does not materially alter the most important short-term catalyst: continued advertising revenue growth. The biggest risk remains heightened competition from larger technology rivals, which threatens Roku’s device and platform margins.

Among recent announcements, Roku’s partnership with Amazon Ads stands out, as it aims to bolster the company’s advertising network and expand reach in an environment where digital ad innovation is a key driver. This relevance ties directly to Roku’s primary short-term catalyst, as deeper ad integrations may help capture additional high-margin revenue, particularly as hardware launches like the smart projector intensify ecosystem stickiness.

But on the other hand, investors should keep a close eye on how increased competition in connected devices could affect Roku’s ability to maintain user growth and platform monetization...

Read the full narrative on Roku (it's free!)

Roku's outlook anticipates $6.1 billion in revenue and $372.1 million in earnings by 2028. This is based on a projected annual revenue growth rate of 11.4% and an earnings increase of $433.6 million from the current earnings of -$61.5 million.

Uncover how Roku's forecasts yield a $103.27 fair value, a 4% upside to its current price.

Exploring Other Perspectives

Ten fair value estimates from the Simply Wall St Community range widely from US$84.40 to US$162.21 per share. This diversity of opinion highlights why advertising revenue momentum and market share shifts matter so much for Roku’s future, prompting you to weigh several alternative viewpoints.

Explore 10 other fair value estimates on Roku - why the stock might be worth as much as 64% more than the current price!

Build Your Own Roku Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Roku research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free Roku research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Roku's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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