News

Roku Inc. ROKU recently collaborated with Sony’s SONY Sony Pictures Television to add NFL Media’s series, GMFB: Overtime, to the successful Good Morning Football series.

This new two-hour daily show that is going to be added to the Good Morning Football series has aired on NFL Network for the past seven years. The Roku Channel is expanding the Good Morning Football franchise with GMFB: Overtime, which will be available to stream for free from Monday to Friday, starting on Jul 29.

GMFB: Overtime is produced by NFL Media’s studios in Los Angeles. It will cover the daily NFL news and stories from around the league. It will also feature interviews with players, coaches, front-office executives and celebrities, and informative and fun discussions on topics relevant to NFL fans.

Roku also secured exclusive multi-year rights for the Major League Baseball (MLB) Sunday Leadoff live games. The company offers Sunday MLB games for free on The Roku Channel and an all-new MLB Zone to help baseball fans discover live and upcoming games.

Roku, Inc. Price and Consensus

Roku, Inc. price-consensus-chart | Roku, Inc. Quote

ROKU’s Recent Partnerships to Aid Long-Term Prospects

To complement the latest collaboration with Sony, Roku has also partnered with some notable companies. These partnerships are expected to aid the long-term prospects of the company.

Roku recently partnered with Fandango for a new CTV relationship. This would enable theatrical advertisers to measure the impact of their Roku ad campaign through Fandango ticket sales. According to internal Roku data, nearly nine in 10 Roku users have gone to the movies in the last 12 months. This partnership will provide theatrical advertisers with a full-funnel view of their media buys.

Roku also expanded its measurement partnership with iSpot.tv. Through this partnership, iSpot will become the preferred third-party measurement partner for ROKU. It will offer direct and programmatic advertisers fast and reliable metrics of ads running across the Roku platform. This would encourage more advertisers to advertise on the Roku platform.

Earlier this year, ROKU entered into a partnership with Comcast’s CMCSA NBCUniversal. This partnership revealed the upcoming launch of the NBC Olympic Zone on Roku. This new destination on the Roku Home Screen Menu will help users access the coverage of the Olympic Games Paris 2024 this summer.

ROKU also partnered with The Trade Desk TTD to help advertisers with a better understanding of TV streaming media. Roku plans to encourage advertisers using The Trade Desk to leverage Roku Media and audience and behavioral data, which would help them gain a better understanding of their TV campaigns.

Conclusion

ROKU’s’ strong partner base is a major positive. However, shares of this Zacks Rank #3 (Hold) company have plunged 31.9% year to date compared with the Zacks Consumer Discretionary sector’s decline of 1.3%. The underperformance is attributed to an uncertain economic environment, primarily due to changing customer preferences. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Evolving TV standards, such as 4K, 8K, HDR and technology upgrades, require continued investments in the development of Roku players, Roku TV and other platforms, putting margins under pressure and increasing operating costs.

In 2023, research and development expenses (25.2% of total revenues) increased 11.3% year over year to $878.5 million.

The Zacks Consensus Estimate for ROKU’s second-quarter 2024 loss is pegged at 45 cents per share, which has remained unchanged in the past 30 days. The consensus mark for 2024 loss is pegged at $1.94 per share, which has remained unchanged in the past 30 days.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.