Roku is making headlines again after a new partnership with Amazon, which gave its stock a strong push this week. The company’s shares rose over 13 percent on Monday morning and settled at a 10 percent gain by the afternoon. This comes after Roku and Amazon announced an exclusive deal that could reshape how ads are delivered on connected TVs.
The Ads Market Is Changing
Under the new agreement, Amazon’s demand-side platform (DSP) will now let advertisers place ads directly across Roku’s content network. Roku currently reaches more than 80 million U.S. households, making it one of the largest players in the connected TV space.
Early results from the deal look promising. Advertisers reached 40 percent more unique viewers without increasing their budgets. Ad repetition dropped by nearly 30 percent, which means people are seeing fewer of the same ads. Amazon also reports that advertisers are getting three times more value from their ad spend with this new setup.
This is a major step forward for both companies. Advertisers get better reach, viewers see fewer repeat ads, and Roku strengthens its lead in the smart TV market. For investors, it’s a sign that Roku is still a serious player in the advertising space.
Roku’s Might Be a Risky Bet
Even with this recent gain, Roku stock is still far from its all-time high. It remains more than 80 percent below the peak it hit in 2021. The company has reported 13 straight quarterly losses and recently lowered its revenue forecast for the year.
However, Roku’s performance is slowly improving. Revenue grew 18 percent in 2024, and engagement on its platform continues to rise. The company expects to return to profitability in the second half of 2025. Time spent streaming on Roku rose 16 percent last quarter, showing that users are still actively using the platform.
This Amazon deal could be the push Roku needs to turn things around. With advertisers looking for better returns and audiences shifting more to streaming, Roku is in a strong position to benefit from both.
For now, the stock remains affordable compared to its peers, and investors will be watching closely to see if this momentum continues.
