Roku Stock Forecast 2026

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•  08 Jan 2026
 

•   ROKU  
   
  +1.84%

$ROKU is once again drawing strong attention from traders and investors searching for the next scalable growth story in streaming and connected TV. Evercore ISI recently upgraded Roku to “Outperform” and raised its price target to $145 from $105, implying a potential upside of roughly 31%. For anyone asking whether Roku stock still has room to grow after last year rally, this update directly addresses that question.

The core of the bullish outlook is Roku expanding role in connected TV advertising. Roku operates through two main businesses: streaming devices that turn televisions into smart TVs, and a digital advertising platform built on its operating system. As more viewers move away from cable and toward streaming, advertisers are following. Roku benefits from this shift because it controls the interface, the data, and the ad inventory, making it a key gatekeeper in the connected TV market.

The driver behind Evercore optimism is Roku strategic partnership with AMZN. Through this agreement, Roku advertising system is integrated with Amazon media buying platform. This allows advertisers to reach close to 80 million U.S. households with connected TVs using Amazon familiar tools. For Roku, this partnership strengthens its competitive position and increases its appeal to large advertisers looking for scale, precision, and measurable results. Evercore believes this collaboration could begin accelerating ad revenue growth as early as 2026.

Looking ahead, several macro events may further support Roku advertising business. Major global and political events such as the FIFA World Cup, the Winter Olympics, and U.S. midterm elections typically drive higher television advertising spending. Connected TV has become a preferred channel for these budgets, and Roku is well positioned to capture that demand. Even without these temporary catalysts, Evercore notes that Roku underlying business appears stable, assuming advertising markets do not weaken sharply.

Roku is also expanding beyond its traditional platform role by investing in original content distribution. At CES 2026, CEO Anthony Wood discussed Howdy, Roku low-cost streaming service launched at $2.99 per month with no advertising. The service is designed for viewers who are frustrated by rising subscription prices and increasing ad loads across the streaming landscape. Wood suggested that Roku aims to distribute Howdy beyond its own platform, signaling a long-term ambition to compete more directly in content while still supporting third-party services.

This dual strategy creates both opportunity and tension. On one hand, Roku remains a neutral platform and advertising partner for other streaming services. On the other, it is testing whether it can build a meaningful content brand of its own. Investors are watching closely to see how Roku balances these roles without damaging its broader ecosystem.

Roku shares rose modestly following the Evercore upgrade and finished 2025 with a gain of approximately 46%. For investors searching online for a clear Roku stock outlook, the story now centers on advertising scale, the Amazon partnership, and optional upside from content expansion. Whether this momentum continues will depend on execution and advertising trends, making a deeper look at Roku full financial and strategic picture a logical next step before committing capital.

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