June 16, 2025 — Exciting news shook the streaming world today as Roku, Inc. ($ROKU) and Amazon Ads unveiled a groundbreaking partnership, creating the largest authenticated connected TV (CTV) advertising network in the U.S. The announcement sent Roku’s stock skyrocketing, climbing 7.7% to 11.5% in a single day and hitting a three-month high of around $80-$83 per share. This deal is a big deal, and here’s why it’s got everyone talking.

A Massive Reach for Advertisers

The collaboration is a catalyst, capable of almost entirely reshaping brand approaches toward streaming audiences. Roku and Amazon Ads, together, stand for access to 80 million U.S. households-often cited as "over 80%" of the CTV market! That is, in other words, a huge chunk of the viewers who are watching shows on The Roku Channel, Amazon's Prime Video, Disney+, Paramount+, Tubi, or Warner Bros. Discovery through the system of Roku and Amazon Fire TV. Imagine having a front-row seat into nearly one living room in America!

Even cooler is the fact advertisers could use Amazon's DSP technology to target these viewers on the highest possible level of granularity. Early days are looking very favorable: this infrastructure allowed brands to reach 40 percent more unique viewers without spending an extra dime, while reducing the frequency with which an ad was shown 30 percent. So, advertisement is becoming less irritating for viewers and providing an advertising value of up to three times more for advertisers. No wonder marketers are all agog over it.

Roku’s Stock Gets a Big Boost

The market went wild for the news, and Roku’s stock was the star of the show. Investors are clearly thrilled about what this means for Roku’s future in the fast-growing CTV space. “This partnership is a huge vote of confidence in Roku’s role as a leader in streaming,” said Roku CEO Anthony Wood. “We’re teaming up with Amazon Ads to make it easier for brands to reach the millions of people who love streaming their favorite shows.”

This deal builds on Roku’s already strong lineup of ad partners, like The Trade Desk, Yahoo, and Google, while giving its direct sales a shiny new edge. It’s a bold move that shows Roku’s ready to play ball with the biggest names in tech.

A Ripple Effect in the Industry

Not everyone’s celebrating, though. The Trade Desk ($TTD) took a hit, with its stock dropping 3% as investors worried that Amazon’s DSP might steal some of its thunder. It’s a reminder that in the world of digital ads, one company’s win can shake things up for others. Still, Roku’s partnership with Amazon is a clear sign that big players are doubling down on CTV as the future of advertising.

Challenges and Opportunities Ahead

Roku’s been on a roll, with revenue growing 17.3% over the past year, but it’s not all smooth sailing. The stock can be a bit of a rollercoaster (with a beta of 1.96, for the finance nerds out there), and analysts don’t expect profits just yet. Plus, Roku’s share price is still a ways off its 2021 highs. But this deal with Amazon Ads is a huge step forward, showing that Roku’s not just keeping up—it’s setting the pace in the streaming wars.

When Roku's streaming services first came out, twelve years ago, they were very few competitors in the streaming industry. Nowadays, thanks to diverse advancements in technology and the internet, the whole industry has grown forcing Roku to up its game to stay on top of competition. Today, the streaming devices offers TV watching without a cable connection. In this article, the valuation of Roku and it's annual growth will be discussed. Furthermore, we will update you on the streaming device's current situation with the COVID-19 outbreak.

Roku Valuation and annual growth

In the beginning of 2020, Roku Inc, was valued at just under 15 billion dollars. Over the years, Roku has had a steady annual growth with just a few downfalls. From 2016 to 2018, the company has seen increases in earnings by 86% from 400 million dollars to 743 million dollars. From 2018 to 2020, Roku's earnings have more than doubled with an 111% increase in revenue. As shown, Roku's financial situation has only been improving and it's projected revenue is even higher than now, Since Roku is in a blooming industry, we can safely state that they are going nowhere in the next years. The internet and television market has been growing excessively and Anthony Wood's company is blooming day by day.

Current situation

Since the start of the coronavirus outbreak, Roku has seen a sharp spike in the number of users because the population are isolating in their homes. There have been three million new viewers added to the streaming service's database in the first months of 2020. In a public announcement disclosed by Roku, they affirmed that they started to see the effects of the population isolating. For the company, this has resulted in a drastic amount of new accounts and the streaming hours have more than tripled. Following their announcement, their stock increased by almost 5% and they are obviously adapting to the current situation. Even if their situation does seem fortunate, in reality it isn't because of the stock market. The stock market's unpredictability has affected Roku's stock. Now, Roku's stock has been aggressive, meaning that it has climbed and fell drastically for the past few weeks. Even if we can't really say what it will look like, we can observe the small increase it has had in the last month. If we have to predict what Roku will look like in the next quarter, we would say that their would be a decrease in value of Roku's stock.

Roku Stock Analysis - 2020 Price Forecast