Financial Market News & Investment Insights

Spotting Winners: Roku (NASDAQ:ROKU) And Consumer Subscription Stocks In Q4

April 9, 2025

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Roku (NASDAQ:ROKU) and the rest of the consumer subscription stocks fared in Q4.

Consumers today expect goods and services to be hyper-personalized and on demand. Whether it be what music they listen to, what movie they watch, or even finding a date, online consumer businesses are expected to delight their customers with simple user interfaces that magically fulfill demand. Subscription models have further increased usage and stickiness of many online consumer services.

The 8 consumer subscription stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 34.2% since the latest earnings results.

Roku (NASDAQ:ROKU)

Spun out from Netflix, Roku (NASDAQ: ROKU) makes hardware players that offer access to various online streaming TV services.

Roku reported revenues of $1.20 billion, up 22% year on year. This print exceeded analysts’ expectations by 4.4%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ EBITDA estimates.

Roku achieved the biggest analyst estimates beat of the whole group. The company reported 89.8 million monthly active users, up 12.3% year on year. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 36.6% since reporting and currently trades at $55.12.

Is now the time to buy Roku? Access our full analysis of the earnings results here, it’s free .

Best Q4: Udemy (NASDAQ:UDMY)

With courses ranging from investing to cooking to computer programming, Udemy (NASDAQ:UDMY) is an online learning platform that connects learners with expert instructors who specialize in a wide range of topics.

Udemy reported revenues of $199.9 million, up 5.5% year on year, outperforming analysts’ expectations by 2.7%. The business had a strong quarter with EBITDA guidance for next quarter exceeding analysts’ expectations.

The stock is down 26.3% since reporting. It currently trades at $5.76.

Is now the time to buy Udemy? Access our full analysis of the earnings results here, it’s free .

Weakest Q4: Match Group (NASDAQ:MTCH)

Originally started as a dial-up service before widespread internet adoption, Match (NASDAQ:MTCH) was an early innovator in online dating and today has a portfolio of apps including Tinder, Hinge, Archer, and OkCupid.

Match Group reported revenues of $860.2 million, flat year on year, in line with analysts’ expectations. It was a softer quarter as it posted a decline in its users.

Match Group delivered the weakest full-year guidance update in the group. The company reported 14.61 million users, down 3.8% year on year. As expected, the stock is down 27.5% since the results and currently trades at $26.43.

Read our full analysis of Match Group’s results here.

Chegg (NYSE:CHGG)

Started as a physical textbook rental service, Chegg (NYSE:CHGG) is now a digital platform addressing student pain points by providing study and academic assistance.

Chegg reported revenues of $143.5 million, down 23.7% year on year. This result met analysts’ expectations. Aside from that, it was a slower quarter as it logged a decline in its users.

Chegg had the weakest performance against analyst estimates and slowest revenue growth among its peers. The company reported 3.64 million users, down 20.5% year on year. The stock is down 68.6% since reporting and currently trades at $0.50.

Read our full, actionable report on Chegg here, it’s free.

Coursera (NYSE:COUR)

Founded by two Stanford University computer science professors, Coursera (NYSE:COUR) is an online learning platform that offers courses, specializations, and degrees from top universities and organizations around the world.

Coursera reported revenues of $179.2 million, up 6.1% year on year. This print surpassed analysts’ expectations by 1.6%. More broadly, it was a mixed quarter as it also logged an impressive beat of analysts’ EBITDA estimates.

The company reported 168 million users, up 18.3% year on year. The stock is down 37.3% since reporting and currently trades at $6.

Read our full, actionable report on Coursera here, it’s free.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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