Paramount Global operates as a media, streaming, and entertainment company worldwide. It operates through TV Media, Direct-to-Consumer, and Filmed Entertainment segments. The TV Media segment operates CBS Television Network, a domestic broadcast television network; CBS Stations, a television station; and international free-to-air networks comprising Network 10, Channel 5, Telefe, and Chilevisión; domestic premium and basic cable networks, such as Paramount+ with Showtime, MTV, Comedy Central, Paramount Network, The Smithsonian Channel, Nickelodeon, BET Media Group, and CBS Sports Network; and international extensions of these brands. This segment also offers domestic and international television studio operations, including CBS Studios, Paramount Television Studios, and Showtime/MTV Entertainment Studios; CBS Media Ventures, which produces and distributes first-run syndicated programming; and digital properties consisting of CBS News Streaming and CBS Sports HQ. The Direct-to-Consumer segment provides a portfolio of domestic and international pay and free streaming services, including Paramount+, Pluto TV, BET+, and Noggin. The Filmed Entertainment segment produces and acquires films, series, and short-form content for release and licensing around the world, including in theaters, on streaming services, on television, through digital home entertainment, and DVDs/Blu-rays; and operates a portfolio consisting of Paramount Pictures, Paramount Players, Paramount Animation, Nickelodeon Studio, Awesomeness, and Miramax. It also offers production, distribution, and advertising solutions. The company was formerly known as ViacomCBS Inc. and changed its name to Paramount Global in February 2022. The company was founded in 1914 and is headquartered in New York, New York. Paramount Global is a subsidiary of National Amusements, Inc.

Paramount Global

Disney DIS is riding high as its direct-to-consumer (DTC) streaming platforms — Disney+, Hulu and ESPN+ — reshape its growth trajectory. The integration of ESPN into the Disney+ app, followed by a full standalone launch later in 2025, is expected to capture a wider sports audience, giving Disney a unique edge in an increasingly competitive streaming market. This strategic initiative is already paying off; its streaming segment delivered $336 million in operating income in the second quarter, up dramatically from $47 million a year earlier. The turnaround builds on momentum gained last August, when ESPN+ helped propel Disney’s entire streaming business into sustained profitability.
Profitable streaming operations are enabling Disney to reinvest in blockbuster content like Moana 2 and Inside Out 2, which drive both streaming engagement and theatrical success. This content, in turn, amplifies revenues across merchandise, parks and cruises, leveraging the strength of the company’s core brands like Marvel, Pixar and Star Wars.
With profitability assured, Disney is in a position to shift from mere volume growth to building a sustainable, loyal customer base. Through bundles, international expansion, local content and its sports-driven strategy, its streaming boom seems well-positioned.
In the second quarter of fiscal 2025, Disney+ added 1.4 million subscribers, bringing its total to 126 million, while Hulu reached 54.7 million subscribers. Together, Disney closed the quarter with 180.7 million total streaming subscribers, representing a 2.5% sequential increase. This momentum signals that the company’s transition from conventional media to streaming is yielding real momentum.DIS’ Competition in the Streaming Space
Netflix Inc. NFLX, the streaming pioneer, dominates the U.S. market with more than $11 billion in the second quarter of 2025 and 45% earnings growth. Netflix's dominant scale, AI-driven recommendations and fast-growing ad-supported tier, nearly half of U.S. sign-ups, bolster its edge over Disney. With exclusive NFL and FIFA rights, plus unmatched success in weekly streaming charts through diverse, original content, Netflix’s expanding global subscriber base and accelerating ad business solidify its leadership and growth momentum.
Paramount Global PARA, through Paramount+ and Pluto TV, leverages its extensive CBS, Nickelodeon and Star Trek content to compete with Disney+ in family programming, live TV and classics. Paramount’s subscription revenues climbed 16% in the first quarter of 2025, fueled by growing subscribers, though streaming remains unprofitable due to debt and operating losses. Paramount’s rich content, cable networks and multi-revenue streams drive global viewership, keeping it positioned for growth despite profitability hurdles.
DIS’ Share Price Performance, Valuation & Estimates
DIS shares have gained 9.1% in the year-to-date period, underperforming both the Zacks Consumer Discretionary sector’s return of 10.6% and the Zacks Media Conglomerates industry’s appreciation of 13.5%.
DIS’ YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, DIS stock is currently trading at a forward 12-month Price/Earnings ratio of 19.46X compared with the industry’s 21.1X. DIS has a Value Score of B.
DIS’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Disney’s 2025 earnings is pegged at $5.78 per share, up a couple of cents over the past 30 days. This indicates a 16.3% increase from the figure reported in the year-ago quarter.
Image Source: Zacks Investment Research
DIS stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Can Disney's Streaming Boom Unlock Room for More Subscriber Growth?

For Immediate Release
Chicago, IL – July 21, 2025 – Today, Zacks Investment Ideas feature highlights Netflix NFLX, Disney DIS, Amazon AMZN and Paramount Global PARA.
Buy, Hold or Take Profits in Netflix After Q2 Earnings Report?
Investors appear to be a bit underwhelmed by Netflix’s Q2 report, despite the streaming king posting favorable quarterly results after market hours on Thursday.
Down 5% in this morning's trading session, some profit taking may also be attributing to the post-earnings dip in Netflix stock as NFLX is still up more than +30% year to date and is sitting on monstrous gains of nearly +500% in the last three years.
This makes it a worthy topic of whether it's time to get in on the profit taking, buy the post-earnings dip, or hold Netflix stock.
Netflix’s Favorable Q2 Results
Exceeding earnings expectations, Netflix’s Q2 net income came in at $3.13 billion or $7.19 per share and above the Zacks EPS Consensus of $7.07. Year over year, Netflix’s Q2 EPS spiked 47% from $4.88 in Q2 2024. This came on Q2 sales of $11.07 billion, which increased 16% from the comparative quarter but slightly missed estimates of $11.08 billion.
Notably, Netflix’s operating margin during Q2 was 34.1%, up from 24% a year ago, with free cash flow soaring 91% to $2.3 billion.
Netflix’s Q2 Subscriber Growth
Although Netflix no longer reports official quarterly subscriber numbers, the streaming giant is thought to have added 5.1 million new net subscribers during Q2. However, this fell below many analysts' forecast of 6 million and was down from 8.05 million new net subscribers in Q2 2024.
Still, Netflix’s total subscribers have risen to over 300 million thanks to its global reach, strong content pipeline, and the growth of its more affordable ad-tier, keeping the company firmly ahead ofDisney’s streaming services and other platforms such as Amazon’s Prime Video and Paramount Global.
Netflix's Revenue Guidance & Margin Outlook
Optimistically, Netflix raised its full-year 2025 revenue guidance to $44.8-$45.2 billion from its previous forecast of $43.5-$44.5 billion. The current Zacks Consensus calls for Netflix’s top line to expand 14% this year to $44.55 billion, with fiscal 2026 sales projected to increase another 12% to $50.05 billion.
It’s also noteworthy that Netflix slightly increased its full-year operating margin guidance from 29% to 29.5%, although many analysts were looking for a margin range between 30-31%.
Monitoring Netflix’s P/E Valuation
What may have dampened excitement for Netflix’s favorable Q2 report is that at 50X forward earnings, NFLX does trade at a noticeable premium to the broader market, with the S&P 500 at 24X. This is also well above Disney and Paramount at 21X and 9X forward earnings, respectively, and even Amazon at 35X.
Bottom Line
For now, Netflix stock lands a Zacks Rank #3 (Hold). Enthusiasm for Netflix’s growth expectations appears to be already priced into its stock, as investors may have been looking for more exceptional upside surprises in its Q2 results.
That said, holding NFLX in the portfolio is still worthwhile considering Netflix’s market dominance, as more than 20% EPS growth is in the forecast for FY25 and FY26, and should help the streaming king grow into its somewhat stretched P/E valuation.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: Netflix, Disney, Amazon and Paramount Global

Investors appear to be a bit underwhelmed by Netflix’s NFLX Q2 report, despite the streaming king posting favorable quarterly results after market hours on Thursday.
Down 5% in this morning's trading session, some profit taking may also be attributing to the post-earnings dip in Netflix stock as NFLX is still up more than +30% year to date and is sitting on monstrous gains of nearly +500% in the last three years.
This makes it a worthy topic of whether it's time to get in on the profit taking, buy the post-earnings dip, or hold Netflix stock.
Image Source: Zacks Investment Research
Netflix’s Favorable Q2 Results
Exceeding earnings expectations, Netflix’s Q2 net income came in at $3.13 billion or $7.19 per share and above the Zacks EPS Consensus of $7.07. Year over year, Netflix’s Q2 EPS spiked 47% from $4.88 in Q2 2024. This came on Q2 sales of $11.07 billion, which increased 16% from the comparative quarter but slightly missed estimates of $11.08 billion.
Notably, Netflix’s operating margin during Q2 was 34.1%, up from 24% a year ago, with free cash flow soaring 91% to $2.3 billion.
Image Source: Zacks Investment Research
Netflix’s Q2 Subscriber Growth
Although Netflix no longer reports official quarterly subscriber numbers, the streaming giant is thought to have added 5.1 million new net subscribers during Q2. However, this fell below many analysts' forecast of 6 million and was down from 8.05 million new net subscribers in Q2 2024.
Still, Netflix’s total subscribers have risen to over 300 million thanks to its global reach, strong content pipeline, and the growth of its more affordable ad-tier, keeping the company firmly ahead of Disney’s DIS streaming services and other platforms such as Amazon’s AMZN Prime Video and Paramount Global PARA.
Netflix's Revenue Guidance & Margin Outlook
Optimistically, Netflix raised its full-year 2025 revenue guidance to $44.8-$45.2 billion from its previous forecast of $43.5-$44.5 billion. The current Zacks Consensus calls for Netflix’s top line to expand 14% this year to $44.55 billion, with fiscal 2026 sales projected to increase another 12% to $50.05 billion.
It’s also noteworthy that Netflix slightly increased its full-year operating margin guidance from 29% to 29.5%, although many analysts were looking for a margin range between 30-31%.
Image Source: Zacks Investment Research
Monitoring Netflix’s P/E Valuation
What may have dampened excitement for Netflix’s favorable Q2 report is that at 50X forward earnings, NFLX does trade at a noticeable premium to the broader market, with the S&P 500 at 24X. This is also well above Disney and Paramount at 21X and 9X forward earnings, respectively, and even Amazon at 35X.
Image Source: Zacks Investment Research
Bottom Line
For now, Netflix stock lands a Zacks Rank #3 (Hold). Enthusiasm for Netflix’s growth expectations appears to be already priced into its stock, as investors may have been looking for more exceptional upside surprises in its Q2 results.
That said, holding NFLX in the portfolio is still worthwhile considering Netflix’s market dominance, as more than 20% EPS growth is in the forecast for FY25 and FY26, and should help the streaming king grow into its somewhat stretched P/E valuation.
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Buy, Hold, or Take Profits in Netflix Stock After Q2 Earnings?

Roku ROKU shares are trading at a premium, as suggested by a Value Score of D. In terms of the price-to-cash flow ratio, ROKU is currently trading at 42.86X, above the Zacks Broadcast Radio and Television industry average of 34.28X.
As of March 31, 2025, Roku generated $310.1 million in operating cash flow over the trailing twelve months, highlighting strong cash generating ability. We believe Roku’s growing scale across U.S. households and its expanding programmatic ad capabilities justify the premium valuation. The company is benefiting from both performance-driven advertising solutions and a differentiated content discovery experience. Do these factors make ROKU stock a compelling buy at current levels? Let’s find out.
ROKU’s Price/Cash Flow Ratio
Image Source: Zacks Investment Research
ROKU’s Initiatives and Partnerships Drive Subscriptions
Roku is ramping up its subscription efforts by enhancing the Roku Experience with personalized features like an AI-powered content row that promotes premium titles, free trials and bundles. A seamless billing system and rising streaming demand have been helping Roku build tens of millions of billed subscriptions each month.
In the first quarter of 2025, Roku acquired Frndly TV, adding more than 50 live and on-demand channels, and partnered with Apple TV+ to offer Season 1 of Severance for free, along with a three-month trial. These moves aim to drive engagement and boost conversions, with more initiatives expected this year.
ROKU Expands Offering With Roku Select Series TVs
Roku has launched its first Roku-made TVs in Canada, available exclusively at Best Buy. The new Roku Select Series includes QLED 4K models from 50" to 75" and smaller 4K and HD variants, all powered by the intuitive Roku OS. With features like Smart Picture, Bluetooth headphone support, a built-in remote finder and access to 200-plus live TV channels, the TVs are built to enhance the streaming experience for Canadian users.
This launch marks a strategic step forward for Roku, allowing it to control both the hardware and software experience, which can significantly deepen user engagement. By expanding its Roku-made TV line into Canada, the company strengthens its international presence and creates a more direct channel to grow its advertising business and drive subscriptions.
ROKU’s Efforts to Stay Competitive in the Ad Market
Roku competes in a crowded ad-supported streaming market alongside giants like Netflix NFLX, Paramount Global PARA and Disney DIS. As of May, Netflix had 94 million users on its ad-supported tier, up from 70 million in November. Paramount+, the streaming service of Paramount Global, is expanding its basic ad tier to Germany, Switzerland and Austria, while Disney’s ad-supported user base hit 157 million globally in January 2025, including 112 million in the United States.
To stay competitive, Roku is doubling down on ad-supported streaming through tech upgrades and strategic alliances. Its new partnership with Amazon Ads via Amazon DSP expands reach across Roku and Fire TV, helping advertisers tap into a large base of authenticated viewers. Early results showed 40% more unique reach with the same budget. Combined with Roku’s AI-powered Home Screen and partnerships with Adobe and INCRMNTAL, these efforts are driving stronger monetization and reinforcing Roku’s momentum in ad-supported streaming.
ROKU’s Earnings Estimate Revisions Show Upward Trend
The Zacks Consensus Estimate for 2025 loss is pinned at 18 cents per share, which has narrowed by a penny over the past 30 days, indicating growth of 79.78% from the figure reported in the year-ago quarter.
The consensus mark for 2025 total revenues is pegged at $4.55 billion, suggesting year-over-year growth of 10.63%.
Roku’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 51.15%.
Roku, Inc. Price and Consensus
ROKU’s Share Price Movement
ROKU shares have risen 22.2% year to date, underperforming the Zacks Broadcast Radio and Television industry’s growth of 30.9% but outperforming the Zacks Consumer Discretionary sector’s return of 10.3%.
The company is constantly innovating across its platform and building strategic partnerships that have positively impacted investor sentiment. Roku has a strong liquidity position that allows it to innovate and grow, and meet its working capital requirements. As of March 31, 2025, cash and cash equivalents were $2.26 billion compared with $2.16 billion as of Dec. 31, 2024, and Roku had no long-term debt which further solidifies Roku’s cash balance.
If we look at its competitors, Netflix, Paramount Global and Disney shares have gained 40.3%, 24% and 7.6%, respectively, in the same time frame.
ROKU’s YTD Price Performance
Image Source: Zacks Investment Research
Conclusion: Time to Buy ROKU Stock?
Given Roku’s expanding subscription base, strategic hardware growth and rising momentum in ad-supported streaming, the company is well-positioned for long-term success. Its partnerships with major players like Amazon and Apple, coupled with tech-driven innovations and a solid balance sheet, reinforce its growth potential. Despite trading at a premium, Roku’s ability to consistently beat earnings estimates justifies the valuation. With strong fundamentals, zero long-term debt and upward revisions in earnings, investors should consider buying ROKU stock as it continues to strengthen its platform and unlock new monetization avenues.
ROKU currently sports a Zacks Rank #1 (Strong Buy) and has a Growth Score of A, a favorable combination that offers a strong investment opportunity, per the Zacks proprietary methodology. You can see the complete list of today’s Zacks #1 Rank stocks here.
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Roku Trades at a P/CF of 42.86X: Should You Still Buy the Stock?

Investors in Paramount Global (Symbol: PARA) saw new options become available today, for the March 2026 expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 246 days until expiration the newly available contracts represent a potential opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the PARA options chain for the new March 2026 contracts and identified the following put contract of particular interest.
The put contract at the $12.00 strike price has a current bid of $1.35. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $12.00, but will also collect the premium, putting the cost basis of the shares at $10.65 (before broker commissions). To an investor already interested in purchasing shares of PARA, that could represent an attractive alternative to paying $12.96/share today.
Because the $12.00 strike represents an approximate 7% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 67%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 11.25% return on the cash commitment, or 16.69% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Paramount Global, and highlighting in green where the $12.00 strike is located relative to that history:
The implied volatility in the put contract example above is 68%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 250 trading day closing values as well as today's price of $12.96) to be 29%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Also see:
YGMZ market cap history
LFMD market cap history
Intel Technical Analysis
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

March 2026 Options Now Available For Paramount Global (PARA)

The streaming wars continue intensifying as traditional media giants battle for market dominance. Disney DIS and Paramount Global PARA represent fundamentally different trajectories in entertainment's evolution. Both leverage vast content libraries and iconic brands for streaming platforms, yet their recent financial performance reveals starkly different outlooks.
Disney's unmatched franchise portfolio, including Marvel, Star Wars and Pixar, has transformed Disney+ into a global powerhouse alongside ESPN+ and Hulu. Paramount Global attempts to leverage CBS’ broadcasting strength and Paramount+ while facing operational challenges and pending Skydance acquisition discussions.
Let's delve deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.
The Case for DIS Stock
Disney's second-quarter fiscal 2025 results demonstrate remarkable operational excellence across its diversified portfolio. The company delivered fiscal second-quarter 2025 adjusted EPS up 20% from the prior year, with first half fiscal 2025 adjusted EPS up 32%, showcasing continued execution across strategic priorities, including the production of exceptional creative content, achieving significant streaming profitability, continuing ESPN's digital evolution and turbocharging Experiences segment growth among others.
The streaming business represents Disney's most compelling growth driver, with Entertainment Direct-to-Consumer operating income improving to $336 million. Disney+ ended the quarter with more than 180 million subscriptions, increasing 2.5 million compared to the fiscal first quarter. This profitability milestone, achieved ahead of expectations, validates Disney's premium content strategy and pricing power. The content pipeline remains unmatched, with Mufasa: The Lion King proving long-staying power, Thunderbolts currently the world's number one movie, and highly anticipated titles coming to theaters later this year.
Disney's Experiences segment continues delivering exceptional results through strategic investments, driving long-term growth. The company currently has more expansion projects underway globally, including an agreement with Miral to create a landmark Disney theme park resort in Abu Dhabi, United Arab Emirates. The upcoming 2025 content slate, including Springsteen: Deliver Me From Nowhere, Freakier Friday and Mickey Mouse Clubhouse+, demonstrates Disney's ability to continuously refresh and expand intellectual property across multiple platforms and demographics.
The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $94.89 billion, indicating 3.86% year-over-year growth, with earnings expected to increase 15.9% to $5.76 per share. These projections suggest steady growth ahead.
The Walt Disney Company Price and Consensus
Find the latest earnings estimates and surprises on Zacks Earnings Calendar.
The Case for PARA Stock
Paramount Global's first-quarter 2025 results reveal persistent structural challenges despite management's optimistic presentation. Total company revenues decreased 6%, including an 8 percentage point Super Bowl impact, with advertising revenues declining 19%. While excluding Super Bowl comparison shows 2% revenue growth, this modest improvement masks underlying operational weaknesses and poor strategic positioning.
The streaming business remains deeply unprofitable despite subscriber growth, facing intensifying competitive pressures. Paramount+ reached 79 million global subscribers, up 11% year over year, with 1.5 million quarterly additions, but DTC adjusted OIBDA improved only $177 million to a $109 million loss. This substantial ongoing loss, despite subscriber growth, highlights fundamental monetization challenges and the inability to achieve necessary scale economics for sustainable profitability. Digital advertising trends, particularly affecting Pluto TV, reflect broader market share losses to larger competitors.
Linear television continues deteriorating rapidly, with TV Media revenues decreasing 13% to $4.5 billion, while affiliate and subscription revenues declined 9% due to subscriber declines and recent renewals. The pending Skydance acquisition, expected in the first half of 2025, creates significant uncertainty about future strategic direction and capital allocation priorities. Management's acknowledgment of growing macroeconomic uncertainty and inability to provide clear full-year guidance further undermines investor confidence in near-term prospects.
The Zacks Consensus Estimate for PARA’s 2025 earnings is pegged at $1.3 per share, indicating a 15.58% decrease year over year. The consensus estimate for 2025 revenues is pinned at $28.37 billion, suggesting a year-over-year decline of 2.88%.
Paramount Global Price and Consensus
Valuation and Price Performance Comparison
Recent market performance favors Disney, with shares returning 15.9% over the past three months, significantly outperforming Paramount's 6.1% rise and the broader Zacks Consumer Discretionary sector.
DIS Outperforms PARA, Sector in 3-Month Period
Image Source: Zacks Investment Research
From a valuation perspective, both stocks trade at relatively attractive levels, though with important distinctions. Disney's price-to-earnings ratio of 19.24x commands a premium over Paramount's 8.44x multiple, reflecting the market's recognition of Disney's superior business quality and growth prospects.
Disney's higher valuation is supported by stronger cash generation capabilities, diversified revenue streams across Parks, Films, and profitable streaming operations, and proven ability to monetize intellectual property globally. The company's achievement of streaming profitability while maintaining subscriber growth justifies investor willingness to pay a premium for quality and execution. Conversely, Paramount's discounted valuation reflects fundamental business deterioration, with declining linear revenues, unprofitable streaming operations, and limited competitive advantages in an increasingly consolidated media landscape.
DIS vs. PARA: P/E F12M Ratio
Image Source: Zacks Investment Research
Conclusion
Disney emerges as the superior investment choice for the second half of 2025, demonstrating operational excellence across all segments while achieving streaming profitability ahead of schedule. Its unmatched content portfolio, global brand recognition, successful theme park operations, and strong balance sheet position the company for sustained growth. Conversely, Paramount Global faces persistent profitability challenges, declining linear revenues, and corporate uncertainty. Investors should hold Disney stock while divesting Paramount positions, as Disney's diversified revenue streams, stronger competitive moat, and proven execution offer significantly better upside potential. DIS currently carries a Zacks Rank #3 (Hold), whereas PARA has a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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DIS vs. PARA: Which Streaming Player Has Better Potential in 2H25?

Roku ROKU has partnered with Amazon AMZN Ads to launch a new integration that could reshape how advertisers reach Connected TV (CTV) audiences. Through Amazon DSP, advertisers can now access an estimated 80 million U.S. CTV households within the Roku and Fire TV ecosystems, gaining unmatched reach through authenticated, logged-in viewers. This collaboration brings together two of the largest CTV platforms, expanding advertiser access to a vast and highly addressable audience across connected devices.
Early results have been promising. Advertisers saw 40% more unique viewers with the same budget and reduced ad repetition by nearly 30%. The integration also allows smarter targeting and better measurement by recognizing users across devices. For Roku, this partnership with Amazon could strengthen its ad business and drive higher platform monetization.
Roku shares jumped 10.4% following the announcement of the partnership, signalling strong investor optimism about the growth opportunities this deal could unlock for the company.
In the trailing three months, Roku shares climbed 23.4%, outperforming the Zacks Broadcast Radio and Television industry’s growth of 20.1% and the Zacks Consumer Discretionary sector’s return of 7.8%. The rise in the company’s shares shows investor confidence in its long-term growth strategy.
ROKU’s 3-Month Price Performance
Image Source: Zacks Investment Research
Roku Ups Its Game With an Already Successful Ad Strategy
Roku’s advertising strategy is gaining strong momentum, powered by tech-driven upgrades like its AI-powered Home Screen, deeper integrations with tools, such as Ads Manager and partnerships with Adobe and INCRMNTAL. The recent partnership with Amazon adds another layer of strength, giving advertisers access to a large base of authenticated viewers through Amazon DSP.
Roku’s efforts in advertising have been paying off. In the first quarter of 2025, Roku’s platform revenues grew 17% year over year to $881 million. Ad revenues, excluding the media and entertainment vertical, grew at an even faster rate and outpaced the broader U.S. OTT ad market. The Roku Channel also saw a sharp 84% year-over-year increase in viewing hours, highlighting rising engagement across the platform.
ROKU’s Earnings Estimate Revisions Show Steady Trend
The Zacks Consensus Estimate for 2025 loss is pinned at 17 cents per share, which has remained unchanged over the past 30 days, indicating growth of 80.9% from the figure reported in the year-ago quarter.
The consensus mark for 2025 total revenues is pegged at $4.55 billion, suggesting year-over-year growth of 10.54%.
Roku’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 51.15%.
Roku, Inc. Price and Consensus
Roku, Inc. price-consensus-chart | Roku, Inc. Quote
Roku’s Ad Ambitions Meet Tough Competition
Roku operates in a highly competitive advertising industry and competes with several companies that are aggressively expanding their ad-supported streaming businesses. Two key rivals include Netflix NFLX and Paramount Global PARA.
Netflix said in May that 94 million subscribers now use its ad-supported tier, up from 70 million in November, reflecting strong demand for its lower-priced plan amid global economic uncertainty. With more than 300 million global customers across all tiers, Netflix continues to see steady spending and engagement despite broader market pressures.
Paramount+, the streaming service of Paramount Global, is expanding its global footprint by introducing its ad-supported basic tier in Germany, Switzerland and Austria. This move reflects the company’s broader strategy to scale its advertising business through international growth.
Roku Faces Challenges in the Devices Segment
Roku’s Devices segment continues to be a weak spot in its overall business, despite stronger-than-expected unit sales in the first quarter of 2025. The company remains under pressure from macroeconomic challenges and heavy promotional activity that carried over from the holiday season, which significantly impacted profitability. While Roku has launched new devices and expanded into international markets, the segment still struggles to contribute meaningfully to the bottom line and remains a drag on overall performance.
In the first quarter of 2025, Devices revenues were $140 million, up 11% year over year, but the segment posted a steep gross loss of $19 million.
ROKU Shares are Overvalued
Roku currently trades at a price-to-cash flow ratio of 38.74X, which is at a premium compared to the Zacks Broadcast Radio and Television industry average of 32.82X. While this valuation gap suggests that investors have high growth expectations for this stock, it is not a good pick for a value investor. A value score of D further reinforces an unattractive valuation for ROKU at this moment.
ROKU’s Price/Cash Flow Ratio
Image Source: Zacks Investment Research
Conclusion: Hold ROKU Stock for Now
Roku’s expanding platform revenues, growing ad footprint and improving user engagement through innovations like the AI-powered Home Screen and Roku Channel underscore its potential in the CTV space. The recent partnership with Amazon further enhances its competitive edge, offering better ad performance and broader reach. These developments reflect strong strategic execution and a scalable business model.
However, challenges remain. The Devices segment continues to drag on profitability, and Roku’s valuation appears stretched relative to the industry. While long-term prospects are solid, near-term risks warrant caution. Investors should watch for sustained execution and margin improvement and hold the stock for now.
ROKU currently carries a Zacks Rank #3 (Hold), suggesting that it may be wise for investors to wait for a more favorable entry point in the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Roku Partners With Amazon Ads: Should You Buy, Sell or Hold the Stock?

Looking at the universe of stocks we cover at Dividend Channel, on 6/16/25, Vertiv Holdings Co (Symbol: VRT), Red Rock Resorts Inc (Symbol: RRR), and Paramount Global (Symbol: PARA) will all trade ex-dividend for their respective upcoming dividends. Vertiv Holdings Co will pay its quarterly dividend of $0.0375 on 6/26/25, Red Rock Resorts Inc will pay its quarterly dividend of $0.25 on 6/30/25, and Paramount Global will pay its quarterly dividend of $0.05 on 7/1/25. As a percentage of VRT's recent stock price of $110.59, this dividend works out to approximately 0.03%, so look for shares of Vertiv Holdings Co to trade 0.03% lower — all else being equal — when VRT shares open for trading on 6/16/25. Similarly, investors should look for RRR to open 0.51% lower in price and for PARA to open 0.41% lower, all else being equal.
Below are dividend history charts for VRT, RRR, and PARA, showing historical dividends prior to the most recent ones declared.
Vertiv Holdings Co (Symbol: VRT):
Red Rock Resorts Inc (Symbol: RRR):
Paramount Global (Symbol: PARA):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 0.14% for Vertiv Holdings Co, 2.05% for Red Rock Resorts Inc, and 1.63% for Paramount Global.
Free Report: Top 8%+ Dividends (paid monthly)
In Thursday trading, Vertiv Holdings Co shares are currently up about 1.9%, Red Rock Resorts Inc shares are off about 0.6%, and Paramount Global shares are up about 0.6% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Ex-Dividend Reminder: Vertiv Holdings, Red Rock Resorts and Paramount Global

Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Ambarella, Inc. (Symbol: AMBA), where a total of 3,203 contracts have traded so far, representing approximately 320,300 underlying shares. That amounts to about 53.2% of AMBA's average daily trading volume over the past month of 601,685 shares. Particularly high volume was seen for the $60 strike put option expiring June 06, 2025, with 230 contracts trading so far today, representing approximately 23,000 underlying shares of AMBA. Below is a chart showing AMBA's trailing twelve month trading history, with the $60 strike highlighted in orange:
Fulgent Genetics Inc (Symbol: FLGT) saw options trading volume of 2,013 contracts, representing approximately 201,300 underlying shares or approximately 51.6% of FLGT's average daily trading volume over the past month, of 390,275 shares. Especially high volume was seen for the $30 strike call option expiring January 16, 2026, with 1,269 contracts trading so far today, representing approximately 126,900 underlying shares of FLGT. Below is a chart showing FLGT's trailing twelve month trading history, with the $30 strike highlighted in orange:
And Paramount Global (Symbol: PARA) options are showing a volume of 35,860 contracts thus far today. That number of contracts represents approximately 3.6 million underlying shares, working out to a sizeable 51.4% of PARA's average daily trading volume over the past month, of 7.0 million shares. Particularly high volume was seen for the $10 strike put option expiring June 20, 2025, with 18,969 contracts trading so far today, representing approximately 1.9 million underlying shares of PARA. Below is a chart showing PARA's trailing twelve month trading history, with the $10 strike highlighted in orange:
For the various different available expirations for AMBA options, FLGT options, or PARA options, visit StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable Thursday Option Activity: AMBA, FLGT, PARA

In recent trading, shares of Paramount Global (Symbol: PARA) have crossed above the average analyst 12-month target price of $11.72, changing hands for $11.93/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher — if things are looking up for the company, perhaps it is time for that target price to be raised.
There are 18 different analyst targets within the Zacks coverage universe contributing to that average for Paramount Global, but the average is just that — a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $10.00. And then on the other side of the spectrum one analyst has a target as high as $16.00. The standard deviation is $1.808.
But the whole reason to look at the average PARA price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with PARA crossing above that average target price of $11.72/share, investors in PARA have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $11.72 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover Paramount Global:
The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell. This article used data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on PARA — FREE.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Paramount Global

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