Streaming name Roku Inc (NASDAQ:ROKU) is gearing up for its second-quarter report, due out after the close tomorrow, July 31. Wall Street expects advertising growth reflected in the results, thanks to partnerships with Airbnb (ABNB), Amazon (AMZN), and Adobe (ADBE). The anticipated revenue of $1.07 billion represents an upside of 11% from the same quarter a year ago.
ROKU, one of Schaeffer's top stock picks for 2025, is currently up 24.2% year-to-date. The equity has been rallying off its early-April lows, with close support at the 20-day moving average since late May. At last glance, the stock was up 2.2% at $92.33 today.
Looking back, Roku stock finished just three of the last eight post-earnings sessions higher -- the most recent being a 14.1% gain this past February. Analysts are looking increasingly optimistic ahead of this report, however, chiming in with several bull notes this month. Of the 30 analysts in coverage, 10 still carry a "hold" or worse rating, while the 12-month consensus price target sits roughly in line with current levels, leaving room for even more optimism in the event of an earnings win.
Short covering could provide tailwinds as well. Though short interest has been slowly unwinding, it still represents 5.7% of the stock's available float.
