Roku enables consumers to stream television programming. It has more than 90 million streaming households and provided 127 billion streaming hours in 2024. Roku is the top streaming operating system in the US, reaching more than half of broadband households, according to the company. Roku's OS is built into streaming devices and televisions that Roku sells and on connected televisions from other manufacturers that license Roku's name and software. Roku also operates the Roku Channel, a free, ad-supported streaming television platform that offers a mix of on-demand and live television programming. Roku generates revenue primarily from selling devices, licensing, and advertising, and it receives fees from subscription streaming platforms that sell subscriptions through Roku.

Investors are puzzled by the drop in $ROKU stock despite an unbelievable earnings report. Brokers are maintaining buy calls and raising price targets, leading to speculation of institutional buying. Some see it as an opportunity to average down, while others believe the stock is overpriced. Despite the drop, some investors are buying shares below $80, citing consistent patterns in the stock's performance after earnings reports.