Roku Stock Nears 3-Year High Before Earnings

Roku Inc (NASDAQ:ROKU) is scheduled to report second-quarter earnings after the close on Thursday, Aug. 6. According to Zacks Research, analysts expect earnings of $0.61 per share on revenue of $1.30 billion, representing a 771.4% year-over-year increase in earnings alongside 17% revenue growth. Investors will be watching for updates on platform revenue growth, advertising demand, and user engagement. 

Options traders are pricing in a 5.3% post-earnings move, regardless of direction, well below the stock's average post-earnings swing of 9.9% over the last eight quarters. The company has posted positive post-earnings reactions in each of its last three quarterly reports, including gains of 6%, 8.6%, and 6.1%.

At last glance, ROKU was down 0.2% to trade at $147.04, just shy of its June 12 three-year high of $148.88. Year to date, the equity is up 35.5%. 

Wall Street remains skeptical for a stock up 35% in 2026, leaving room for upgrades. Of the 29 brokerages covering Roku, just 11 carry a "buy" or "strong buy" rating, while 18 maintain "hold" recommendations. Plus, short interest represents 6.3% of the stock's available float. 

A short squeeze could also in play, with short interest down 23% in the most recent reporting period and a healthy 6.3% of the stock's total available float sold short.