Roku, Inc. is expanding its streaming service, Howdy, with a launch on Amazon’s Prime Video in the U.S. priced at $2.99 per month. The service offers thousands of titles and over 10,000 hours of entertainment from major studios, and aims to strengthen Roku’s recurring revenue base. Streaming households are projected to exceed 100 million this year, with Roku expecting to report $4.890 billion in platform revenue for 2026, marking an 18% increase year-over-year, alongside a projected adjusted EBITDA of $635 million.
The company is reacting to rising competition from giants like Amazon and Netflix. Amazon reported approximately 315 million ad-supported viewers globally, while Netflix anticipates revenues of $50.7 billion to $51.7 billion in 2026, indicating growth rates of 12-14%. Roku’s stock has declined 18.9% year-to-date, underperforming the broader Consumer Discretionary sector which fell by 10.8%.
Roku currently holds a Zacks Rank #1 (Strong Buy) with an earnings estimate of $2.10 per share for 2026, unchanged in the last month, compared to earnings of 59 cents in the same quarter last year.
