Roku, Inc. (ROKU): A Bull Case Theory

We came across a bullish thesis on Roku, Inc. on Accrued Interest’s Substack by Simeon McMillan. In this article, we will summarize the bulls’ thesis on ROKU. Roku, Inc.'s share was trading at $96.79 as of November 28th. ROKU’s forward P/E was 84.03 according to Yahoo Finance.

Roku, Inc., together with its subsidiaries, operates a TV streaming platform in the United States and internationally. ROKU is increasingly emerging as a meaningful player in the broader streaming landscape, and its performance over the past year shows why it deserves closer attention. While its monthly share has appeared stagnant at 2.8% since July, that narrow view overlooked a more important trend: Roku’s year-over-year growth has been far stronger than expected, with its +1.0 point gain in share since last October doubling Netflix’s +0.5 point gain over the same period.

Although this 56% YoY increase comes off a relatively small base, it still reflects meaningful momentum, particularly given Roku’s hybrid position in the ecosystem as both a platform for third-party streaming services like Netflix and YouTube and a producer of its own original content. This dual presence strengthens Roku’s ability to capture engagement across multiple content categories and gives it a differentiated competitive profile compared to pure-content or pure-platform peers.

The steady YoY gains underscore that Roku continues to take incremental share from legacy media providers, reinforcing the broader structural shift toward digital-first, streaming-native platforms. In hindsight, its omission from earlier updates was an oversight, as Roku is clearly participating in the same secular trend that is fueling growth for other new-media players.

Its traction may still be early, but the consistent annual share gains highlight a competitive trajectory that should not be ignored, particularly as consumers continue migrating toward streaming environments where Roku already maintains a strong foundation and an expanding role.

Previously we covered a bullish thesis on Roku, Inc. by LongYield in May 2025, which highlighted Roku’s strengthening platform business, advertising momentum, and growing engagement. The company's stock price has appreciated approximately by 60.19% since our coverage. This is because the thesis played out. The thesis still stands as Roku continues gaining scale. Simeon McMillan shares a similar view but emphasizes Roku’s year-over-year share gains.

Roku, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 60 hedge fund portfolios held ROKU at the end of the second quarter which was 56 in the previous quarter. While we acknowledge the potential of ROKU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.