## Roku Stock Gets Buy Rating from Arete Research—What's Driving the Bullish Call?

On January 5, 2026, Arete Research made a notable shift in its stance on Roku (NasdaqGS:ROKU), elevating the stock from a Neutral position to Buy. This upgrade signals growing confidence in the streaming platform's growth trajectory and market potential.

**The Price Target Picture**

Analysts tracking Roku project an average one-year price target of $117.75 per share as of December 20, 2025, suggesting modest upside potential. Current forecasts span a wide range—from a conservative $73.73 to an ambitious $152.25—reflecting divergent views on the company's prospects. At the latest closing price of $114.68 per share, the consensus target implies approximately 2.67% upside potential.

Looking beyond equity price, the revenue outlook appears constructive. Roku's projected annual revenue stands at 4,799 million, representing a 5.63% year-over-year increase. However, non-GAAP EPS projections remain in negative territory at -2.92, highlighting profitability challenges that investors should monitor closely.

**Institutional Positioning and Fund Sentiment**

The institutional landscape around Roku reveals mixed signals. A total of 976 funds and institutions hold positions in the company, up by 17 entities (1.77%) from the previous quarter. Average portfolio weight across all funds dedicating capital to ROKU is 0.21%, though this marks a 9.46% increase in relative allocation intensity.

Total institutional share ownership rose modestly by 0.21% to 126,007,000 shares over the three-month period. Notably, the put/call ratio stands at 1.44, suggesting a bearish sentiment undercurrent despite the recent analyst upgrade.

**Major Shareholders' Recent Moves**

Several heavyweight investors have adjusted their Roku positions in recent months:

**Fidelity Advisor Growth Opportunities Fund (FAGAX)** currently holds 8,971,000 shares (6.86% ownership), down from 10,096,000 shares previously. The fund slashed its portfolio weight in ROKU by 24.35%, representing a meaningful pullback.

**ARK Investment Management's** direct stake comprises 7,352,000 shares (5.62% ownership), a reduction from 8,460,000 shares held earlier. The firm trimmed its ROKU allocation by 19.62%, signaling selective profit-taking or reallocation priorities.

The **ARK Innovation ETF (ARKK)** maintains 5,917,000 shares (4.52% ownership). While this represents a slight increase from 5,809,000 shares, the fund paradoxically reduced its portfolio weight in ROKU by 10.93%.

**Vanguard Total Stock Market Index Fund** (VTSMX) expanded its stake to 4,147,000 shares (3.17% ownership) from 4,059,000 shares, a 2.12% increase that was accompanied by a 13.73% boost in portfolio allocation—one of the few institutions adding relative weight.

**Sumitomo Mitsui Trust Holdings** decreased its position from 4,452,000 to 3,689,000 shares (2.82% ownership), a decline of 20.69%, with portfolio allocation shrinking by 12.83%.

**What This Means**

The Arete Research upgrade to Buy carries significance, yet the broader institutional behavior suggests cautious optimism rather than conviction. The divergence between the analyst rating and the mixed fund movements indicates that investors remain selective, balancing growth potential against near-term profitability concerns. The streaming media landscape continues to evolve, and Roku's ability to monetize its platform will be crucial in validating the bullish thesis.