Roku stock surged nearly 10% Monday following the announcement of a new advertising partnership with Amazon, marking a potentially transformative moment for the streaming platform. The collaboration allows Amazon Ads to access Roku’s massive connected TV footprint through its demand-side platform, creating new momentum in the competitive streaming ad space.
The deal gives Amazon advertisers access to over 80 million connected TVs in the U.S., encompassing households that use Roku OS and Amazon Fire TV. Advertisers using Amazon’s platform will now be able to target logged-in viewers across Roku’s ecosystem, including The Roku Channel and Prime Video.
This integration is expected to become widely available by the fourth quarter of 2025. Early tests suggest strong benefits: advertisers reached 40% more unique viewers while reducing repetitive ad exposure by nearly 30%. The result? Higher value for advertisers and a more personalized experience for viewers.
Roku’s stock, which has already rallied close to 50% over the past year, still trades significantly below its 2021 highs. Monday’s news could mark the beginning of a broader recovery. Despite recent financial challenges—including 13 straight quarterly losses—Roku has been steadily improving its fundamentals.
The company ended 2024 with 18% annual revenue growth and beat earnings estimates in all four quarters. Streaming engagement remains strong, with total hours watched rising 16% in the latest quarter. Management now projects a return to profitability in the second half of 2025.
Some concerns linger. Roku revised its full-year revenue and profit guidance lower, citing anticipated tariffs on hardware. Still, the Amazon partnership offers a major validation of Roku’s scale and relevance in the smart TV market—particularly as advertisers continue shifting budgets toward connected TV platforms.
For investors, the Amazon-Roku tie-up could be the catalyst Roku stock has needed to shake off recent skepticism and reestablish itself as a leading name in streaming technology.