Jefferies Maintains 'Hold' Rating on Roku (ROKU) Impressed by AI Initiatives

Roku, Inc. (NASDAQ:ROKU) is one of the top 10 stocks to buy now according to Cathie Wood. On August 15, Jefferies reiterated a ‘Hold’ rating on the stock and a $100 price target. The positive stance is reflected in the research firm’s endorsement of the company’s artificial intelligence initiatives.

According to Jefferies, Roku has made significant strides with its AI strategy. All its engineers are already using Co-Pilot and similar tools to enhance operational efficiency. Additionally, the company’s operating system utilizes machine learning to improve the user experience. Consequently, it is expected to strengthen content recommendations and create more effective monetization opportunities.

Similarly, the recently launched Roku Ads Manager is poised to capitalize on generative AI video technology to reduce production costs. In return, it should lead to quick commercial creation. Jefferies also expects AI-generated content to create long-term opportunities. The remarks come as the company delivers impressive second-quarter results with earnings per share of $0.17, against a loss of $0.15 per share expected.

Roku, Inc. (NASDAQ:ROKU) develops and markets streaming players and Roku TVs, enabling users to access a wide variety of content through their televisions. It connects consumers with a vast library of free and paid streaming options, including movies, shows, live TV, and more.

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Disclosure: None. This article is originally published at Insider Monkey.