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How to Buy Roku Stock [2024] | Step-by-Step

How to Buy Roku Stock [2024] | Step-by-Step
Bogdan Stojkov

Summary: Roku (NASDAQ: ROKU) is a publicly-traded company that provides digital media players and streaming services, offering users access to a diverse range of content on their televisions over the internet. The most convenient way to buy Roku stock is through a reputable brokerage platform like eToro.

Highly Rated Stock Trading & Investing Platform

  • Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.

  • 0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finbold.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD

About Roku Inc

Roku homepage. Source: roku.com

Roku Inc. is a leading American company specializing in digital media players, offering a variety of streaming devices and services that enable users to access a wide range of content over the internet on their televisions. Founded in 2002, Roku has grown to become a prominent player in the streaming industry, with millions of active accounts and a diverse selection of channels and content options.

If you’re looking for an alternative streaming service investment option, feel free to check out our How to Buy Netflix Stock guide.

Roku IPO

An initial public offering (IPO) marks the first time a company’s stock becomes available for public purchase.

Roku went public in September 2017, making its debut on the NASDAQ stock exchange under the ticker symbol ROKU. Its IPO marked a significant milestone for the company, attracting investor interest and contributing to its growth trajectory in the following years.

How to buy Roku stock: Step-by-step

Investing in Roku stock involves a few straightforward steps. Whether you’re a seasoned investor or new to the world of stock trading, here’s a step-by-step guide to help you navigate the process:

Step 1: Choose the right broker

The first step in buying Roku stock is selecting a reputable brokerage platform that meets your needs. A brokerage account serves as your gateway to the stock market, allowing you to buy and sell securities such as stocks. In this case, our go-to broker for buying Roku stock is eToro—a popular platform with a host of solid features like:

  • Commission-free stock trading;
  • Access to over 2,000 stocks from 17 different exchanges;
  • The option to purchase fractional shares;
  • Charting tools;
  • A user-friendly platform that simplifies the trading experience.

Highly Rated Stock Trading & Investing Platform

  • Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.

  • 0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finbold.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD

Step 2: Fund your account

Once you’ve chosen a brokerage platform, you’ll need to fund your account to purchase Roku stock. Most brokers offer various funding options, including bank transfers, wire transfers, debit card transactions, and electronic funds transfers (EFTs).

To deposit funds into your account securely, simply follow the instructions provided by your chosen broker. Make sure to consider any potential fees or processing times associated with different funding methods. Once your account is funded, you’ll be ready to proceed with placing your order.

Step 3: Place your order

With your brokerage account funded, you can place your order to buy Roku stock. So, navigate to the trading section of your broker’s platform and search for Roku’s ticker symbol, ROKU. You’ll typically have the option to place different types of orders, including market orders, limit orders, and stop orders.

A market order instructs your broker to execute the trade at the current market price. On the other hand, a limit order allows you to specify the maximum price you’re willing to pay for Roku stock. There’s also a stop order, which triggers a market order once Roku’s stock reaches a predetermined price level.

Select the type of order that best suits your investment strategy and enter the quantity of Roku shares you wish to purchase. Finally, review and confirm your order before submitting it for execution.

Roku stock price today

Is Roku stock a buy, sell, or hold?

To decide whether to buy, sell, or hold Roku stock, you can utilize the technical analysis widget provided by TradingView. It offers a dynamic overview of Roku’s performance, incorporating diverse technical indicators such as moving averages and oscillators to provide a real-time snapshot of its current trends and potential future trajectory.

Disclaimer: TradingView does not recommend trading financial instruments based exclusively on the advice of the Technical Rating indicator. These recommendations cannot predict future movements and are meant as assistance for spotting potentially favorable buy/sell conditions if this is consistent with their strategy.

Beyond technical analysis, investors should investigate the companies’ fundamentals to gauge the stock’s potential as a buy. This includes examining financial health indicators such as earnings growth, debt levels, revenue stability, and profit margins.

Pros and cons of buying Roku stock

Pros

Pros

  • Growth potential: Roku operates in a rapidly expanding industry, with increasing demand for streaming services and digital entertainment;
  • Diverse revenue streams: In addition to hardware sales, Roku generates revenue through advertising, content distribution, and licensing agreements;
  • Market leadership: Roku is a dominant player in the streaming device market, with a large and loyal user base.
Cons

Cons

  • Competition: Roku faces competition from other streaming platforms, tech giants, and traditional media companies vying for market share;
  • Dependence on partnerships: Roku’s success is partly reliant on its relationships with content providers and advertisers, which could be subject to change;
  • Volatility: Like any publicly traded stock, Roku’s share price can experience significant fluctuations due to market conditions, industry trends, and company-specific factors.

Common investing mistakes when buying stocks

Failing to research and understand the company, its industry, and its competitive positioning can lead to uninformed investment decisions, and it’s one of the most common investing mistakes that you can make. Nevertheless, it’s not the only one, so you should also be wary of the following pitfalls:

  • Overlooking risks: Ignoring potential risks and blindly chasing high returns can result in losses and disappointment;
  • Emotional investing: Letting emotions such as fear and greed dictate your investment decisions can lead to impulsive actions and poor outcomes;
  • Neglecting diversification: Concentrating your portfolio on a single stock or asset class increases your risk exposure. Diversify your investments to mitigate risk and enhance long-term returns.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

FAQs about how to buy Roku stock

Who owns the most Roku stock?

As of Q1 2024, Vanguard Group Inc owns the most Roku shares (11,853,947), with FMR, LLC (10,921,251) and ARK Investment Management, LLC in second and third place.

What is the highest Roku stock has ever been?

Back in late July 2021, Roku’s stock closing price was 479.50, which is its all-time high.

Is Roku owned by Amazon?

No, Roku is not owned by Amazon. Roku Inc. is an independent publicly traded company, while Amazon operates its own line of streaming devices and services. Although both companies compete in the streaming market, they are separate entities with distinct ownership structures and business models.

Can I buy Roku stock directly from the company?

No, you’ll need to purchase Roku stock through a brokerage platform like eToro.

How much money do I need to buy Roku stock?

The amount of money you need to buy Roku stock depends on its current market price and the number of shares you want to purchase. Consider factors such as your investment budget and risk tolerance when determining how much to invest.

Is now a good time to buy Roku stock?

The decision to buy Roku stock should be based on your investment goals, risk tolerance, and market outlook. Consider doing thorough research before making any investment decisions.

How can I monitor my Roku stock investment?

Most brokerage platforms offer portfolio tracking tools that allow you to monitor the performance of your investments, including Roku stock. You can also use financial news websites, stock market apps, and investment newsletters to stay informed about developments that may impact your investment.

Highly Rated Stock Trading & Investing Platform

  • Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.

  • 0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finbold.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD

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