Roku (ROKU) was on track to snap seven straight sessions of losses on Friday after shares climbed over 3% during mid-day trading. Shares of the streaming platform rose as much as 3.17% to $93.87.
The company began its downward course on November 12. The following day, on November 13, its shares closed 5.58% lower at $100.01. Between Nov 12 and Nov 20, it declined by over 14%.
As per Seeking Alpha’s quant rating, the stock has a Hold rating with a score of 3.39 out of 5. ROKU has been rated a D- for valuation, but it has been graded an A+ for growth.
However, Seeking Alpha and Wall Street analysts have issued a Buy call for the stock.
Earlier this month, Seeking Alpha analyst Stone Fox Capital reiterated its Strong Buy rating for Roku following its third-quarter results.
With platform revenues rising 17%, outpacing user engagement growth and monetization initiatives expected to drive higher ARPU and revenue, the analyst believes that the company is positioned for strong growth.
It continues to find new ways to convert its sizeable user base into steady growth, while rising profits give it greater flexibility to deploy its large cash reserves- whether to reinvest in the business or ramp up share buybacks, Stone Fox Capital noted.
“Investors should use any retest of $100 as an opportunity to buy the streaming platform stock on weakness in front of a multi-year growth trajectory,” they additionally said.
The company reported its third-quarter results in October, where it reported a profit beat and guided the fourth quarter slightly ahead of analysts’ estimates.
Despite its recent fall, ROKU has gained over 25% year-to-date, outpacing the broader markets, which rose nearly 12%. In the past year, the stock has advanced by over 32%.