Shares of Roku Inc. climbed 2.7% in pre-market trading after brokerage firm Oppenheimer upgraded the stock from Perform to Outperform. The move comes after Roku’s shares had fallen roughly 25% over the past month, creating what analysts view as an attractive entry point for long-term investors.
Oppenheimer also set a price target of $105, citing several growth catalysts including Roku’s strategic advertising partnership with Amazon, increased interest surrounding the Winter Olympics, the addition of the Peacock streaming service, and an expected boost from US mid-term political advertising.
One of the most important factors behind Oppenheimer’s bullish stance is Roku’s collaboration with Amazon’s demand-side platform (DSP). The partnership enables advertisers to reach a massive connected-TV audience while leveraging Amazon’s commerce data for more accurate targeting and measurement.
Last year, the two companies combined their ecosystems to provide access to around 80 million US households—a compelling proposition as advertising budgets continue to shift toward streaming platforms.
Oppenheimer estimates that the Amazon partnership could add approximately $25 million in revenue in 2026, representing about 1% of Roku’s platform revenue. While modest at first, analysts view this as the foundation for a scalable revenue stream in the years ahead.
The collaboration is expected to expand throughout this year, as more brands seek data-driven advertising solutions within the connected-TV environment.
The advertising industry is undergoing a structural shift from traditional linear television to internet-connected streaming platforms (CTV). Roku, as one of the most widely used TV operating systems in the US, is positioned as a direct beneficiary of this trend.
Beyond content distribution, Roku functions as a central advertising infrastructure, allowing brands to engage viewers in the living-room environment where attention levels remain high.
The addition of Peacock to Roku’s platform further enhances its content offering. More premium programming translates into longer viewing time, which in turn increases the value of ad inventory.
Oppenheimer views this as a strategic step that strengthens Roku’s competitive position against rivals such as Google TV, Amazon Fire TV, and Apple TV.
Market data indicates that interest in the Winter Olympics is running about 20% higher than in previous editions. Oppenheimer believes the event could:
Add roughly 400 basis points to platform revenue growth in Q1
Contribute about 1 percentage point to full-year 2026 growth
Major sporting events have historically been a powerful driver of video advertising, and Roku’s large CTV audience places it in a prime position to benefit.
US mid-term political advertising is projected to generate around $45 million for Roku in 2026, equivalent to roughly 1% of platform revenue.
During election cycles, ad spending typically surges—particularly on digital channels that offer precise voter targeting. Roku’s data capabilities and scale provide a significant advantage in capturing this demand.
Oppenheimer expects Roku’s core platform revenue to grow:
15% in 2026
16% in 2027
These forecasts exclude political advertising and one-off items and are slightly above current market consensus.
In a bullish case supported by the Amazon partnership and the Olympics effect, growth could reach:
17% in 2026
16% in 2027
This reinforces the view that Roku remains one of the strongest beneficiaries of the global CTV expansion.
Following the recent sell-off, Roku shares are trading close to the lower end of their one-year valuation range, particularly on forward EBITDA multiples.
Oppenheimer argues that current pricing does not fully reflect:
The upside from Amazon integration
Major event-driven advertising
Roku’s leadership in connected-TV ads
These factors underpin the decision to upgrade the stock to Outperform.
Roku’s investment narrative now rests on three pillars:
Structural growth of connected TV
Data and scale advantages via Amazon
Short-term catalysts from sports and politics
However, investors should continue to monitor:
Competitive pressure from tech giants
Macro trends in ad spending
Content and operating costs
The 2.7% rally in Roku shares following Oppenheimer’s upgrade signals renewed confidence in the company’s long-term trajectory. With an expanding CTV ecosystem, a strategic alliance with Amazon, and multiple catalysts heading into 2026, Roku appears better positioned than it has been in recent quarters.
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