Can Roku get out of this trend?

Roku, Inc

July 25, 2025

About ROKU

Roku, Inc. engages in the provision of a streaming platform for television. It operates through the Platform and Devices segments. The Platform segment includes digital advertising and related services including the demand-side platform and content distribution services such as subscription and transaction revenue shares, media and entertainment promotional spending, the sale of premium subscriptions, and the sale of branded channel buttons on remote controls. The Devices segment is involved in the sale of streaming players, audio products, smart home products, and accessories that are sold through retailers and distributors, as well as directly to customers through the company’s website. The company was founded by Anthony J. Wood in October 2002 and is headquartered in San Jose, CA.

Feature Story

Remember the days of Covid, and ROKU was once almost a $500 stock? I sure do. But then things calmed down and ROKU came back to Earth to a more realistic price bouncing between $40 and $100. I mean come on just look at that chart.

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The stock clearly wasn’t representing what the company was actually worth and people fomo’d into stay at home stocks such as netflix, roku, peleton, and drug stocks.

Lets zoom this chart in to the last couple years, looking at the daily timeline. Below we see how ROKU has been trading in this pattern between roughly $50 and $95. We’ve seen more tests of the support line than we have tests of the resistance line. In my mind this is bearish, however as you can see we are still near the resistance line as of today (7/25/25).

There is not much of a pattern on the daily chart other than staying in this channel. The analysis of ROKU is rather a simple one this time. ROKU reports it’s earnings in six days. With the price right near the resistance line this could be a great opportunity for a good report to push ROKU out of this two year old channel and look for a new pattern to move upward. If ROKU releases bad numbers, than we can see the stock drop again and probably over time retest the support level.

Keep in mind my resistance level and support level is about a 40% drop in value. If ROKU misses on earnings, I don’t think it will suffer that hard. My guess would be first a 4% - 7% drop and hopefully finding support in the $80 - $85 range.

A Final Note

ROKU has a lot of competitors in the streaming service. BIG COMPETITORS. We’re talking Netflix, Disney, Paramount, and others. Netflix just released their earnings on 7/17, beating estimates and their price still came down. When looking to add a streaming service to your portfolio, this is a category I would look heavily into the fundamentals rather than just the technicals.

“Never financial advice, just a thought.”

-Bremcakes