Roku's Labor Efficiency Rose 34% Since 2021—Analyst Sees More Gains Ahead

Zinger Key PointsRoku’s labor productivity has been improving over the past 3 years.Analyst raises price target to $100.Up Next: Get 5 Dark Horse Stocks Wall Street Is Quietly Loading Up OnRoku Inc.ROKUis showing promising signs of growth as it enhances labor productivity, a key metric in today'scompetitive streaming industry, according to Needham.The RokuAnalyst:Analyst Laura Martinmaintained a Buy rating, while raising the price target from $88 to $100.The Roku Thesis:The company's total revenues per full-time equivalent (FTE) grew from $921,528 in 2021 to $1.2 million in 2024, Martin said in the note.Check outother analyst stock ratings.This translates to a 34% growth over the three years, she added."Roku had the 3rd highest growth rate in revenue-based labor efficiency among the large cap stocks we cover," behind onlyAmazon.com IncAMZNandMeta Platforms IncMETA, which recorded improvements of 40% and 35%, respectively, the analyst stated."We believe that new CFODan Jedda, who came to Roku in 2Q23, has been instrumental at driving this improvement, and we expect this positive trajectory to continue," she further wrote.ROKU Price Action:Shares of Roku had declined by 0.16% to $88.00 at the time of publication on Wednesday.Read More:Roku Handed Amazon A Powerful Ad Edge—Acquisition Odds Jump, Analyst SaysPhoto: ShutterstockLoading...Loading...ROKURoku Inc$87.87-0.31%Stock Score Locked: Edge Members OnlyBenzinga Rankings give you vital metrics on any stock – anytime.Unlock RankingsEdge RankingsMomentum82.84Growth24.71QualityN/AValue57.60Price TrendShortMediumLongOverviewAMZNAmazon.com Inc$222.261.32%METAMeta Platforms Inc$734.131.87%Market News and Data brought to you by Benzinga APIs© 2025 Benzinga.com. . .EarningsAnalyst RatingsOptionsDividendsIPOsdate▲▼ticker▲▼name▲▼Price Target▲▼Upside/Downside▲▼Recommendation▲▼Firm▲▼Click to see moreAnalyst RatingsupdatesAnalyst CalendarJoin Benzinga Edge and unlock all the major upgrades, downgrades, and changes to the market's most accurate analysts.Click to JoinPosted In:Analyst ColorPrice TargetReiterationAnalyst RatingsExpert IdeasLaura MartinNeedhamStories That Matter