Roku (ROKU) stock has been trending higher. Shares of the TV streaming platform provider have recently climbed to a new 52-week high and are up 41% over the past year. That performance stands out in the streaming space, particularly when compared with industry heavyweight Netflix (NFLX). Shares of NFLX stock have risen by 3% over the same 12-month period.
At the core, Roku’s business comprises two main segments: platform and devices. The platform segment is the company’s primary growth engine, generating revenue from digital advertising and the distribution of streaming services. As more users spend time watching content on Roku’s operating system, advertisers gain access to a large, increasingly engaged audience, which supports higher ad demand and improved monetization.
