Roku Stock Gets Bullish Push from Arete Research Following Rating Upgrade

Analyst Boost and Price Target Insights

Arete Research made headlines on January 5, 2026, when it elevated its stance on Roku from Neutral to Buy, signaling growing confidence in the streaming platform’s prospects. Analysts tracking the company have established a consensus one-year price target of $117.75 per share as of December 20, 2025, with estimates spanning from $73.73 to $152.25. Against Roku’s latest closing price of $114.68, this translates to anticipated upside of approximately 2.67% in the near term.

The underlying business fundamentals appear supportive of this optimism. Revenue projections for the coming year total $4,799 million, reflecting a 5.63% year-over-year expansion. However, the non-GAAP earnings per share forecast sits at -2.92, suggesting the company remains in an investment phase.

The Mixed Signals from Large Shareholders

Institutional positioning in Roku tells a nuanced story. Across 976 funds and institutions maintaining positions—up 17 from the previous quarter—the collective portfolio weighting stands at 0.21%, representing a 9.46% increase. Total institutional share count grew modestly by 0.21% to 126.007 million shares.

Yet beneath this aggregate growth lies considerable divergence. Fidelity Advisor Growth Opportunities Fund (FAGAX) trimmed its holding to 8.971 million shares (6.86% ownership), down from 10.096 million previously—a reduction of 12.54%. ARK Investment Management similarly pared back its position to 7.352 million shares (5.62% ownership) from 8.460 million, representing a 15.07% decrease. Both firms significantly reallocated capital away from Roku during the quarter.

Not all major holders followed this pattern. Vanguard Total Stock Market Index Fund (VTSMX) added to its position, growing holdings to 4.147 million shares (3.17% stake) from 4.059 million, and actually boosted allocation weight by 13.73%. Sumitomo Mitsui Trust Holdings, by contrast, reduced exposure from 4.452 million to 3.689 million shares (2.82% ownership), marking a 20.69% decline.

Market Sentiment Remains Cautious

The put/call ratio of 1.44 suggests that traders maintain a bearish sentiment despite the Arete upgrade, indicating hedging activity exceeds call buying interest.

Roku’s investment case thus presents a study in contrasts—analyst optimism clashing with measured institutional repositioning and protective options positioning.