Roku Stock Rebounds on Q3 Growth, But Q4 Ad Uncertainty Persists
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Roku's stock price has rebounded recently due to improved revenue growth in Q3, driven by more subscriptions and transactions.
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However, management warned of an uneven ad market recovery in Q4, making financial growth challenging.
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Roku is expanding internationally and growing its user base, which positions it well long-term as the connected TV ad market grows.
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The Roku Channel is seeing strong growth in streaming hours, helping retain and grow active accounts.
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While more upside is possible as the ad market recovers, Roku's lower valuation may make it worth starting a small position now.