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Zacks Investment Ideas feature highlights Oracle and Roku
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For Immediate Release
Chicago, IL – May 13, 2026 – Today, Zacks Investment Ideas feature highlights Oracle (ORCL - Free Report) and Roku (ROKU - Free Report) .
Shifting Sentiment: These Stocks Have Bounced Back Big
It’s no secret that the market has had a stellar showing over the past month, with technology stocks the primary driving force. Several stocks, including Oracle and Roku, have also seen sentiment turn around in a big way, both outperforming relative to the S&P 500.
Let’s take a closer look at how each presently stacks up.
Oracle Bounces Back
Oracle shares have seen a nice comeback over the past month, a big shift from the huge drop in sentiment that we saw beginning last September or so. The market’s opinion became rather downbeat onthe back of capital-related concerns stemming from its current data center buildout, but recent quarterly results and robust demand trends for cloud computing solutions have helped ease those concerns.
Cloud revenues soared 44% YoY to $8.9 billion in its latest release, at the high end of its previous guidance. Importantly, its remaining Performance Obligations, or RPO, ended the quarter at $553 billion, up a triple-digit 325% from the same period last year.
Sales growth has remained broadly strong for the tech titan, as shown below. Revenue of $17.1 billion throughout the above-mentioned quarter reflected a 21% YoY growth rate, reflecting the strongest growth rate we’ve seen in years from the company.
Roku Reports Record Free Cash Flow
Roku shares are benefiting from positive quarterly results that were delivered just recently, posting a double-beat relative to our consensus expectations. Importantly, its profitability picture, along with its cash generation, strengthened significantly, with gross profit climbing 27% YoY to $565 million. Free cash flow, on a trailing twelve-month basis, totaled $538.8 million, reflecting a new company record.
The EPS outlook across its current and next fiscal year have moved bullishly, with upward revisions coming in following the release. Revenue revisions have also moved bullishly across the same timeframes, painting a solid demand outlook for Roku.
Roku’s platform revenue grew 28% year-over-year as well in the above-mentioned release, with strong Advertising and Subscription results leading the charge. Total Streaming Hours also saw a nice 8% YoY climb, with the company also now reporting more than 100 million households worldwide use a device powered by the Roku TV operating system (OS) monthly.
The favorable trends among its customer base help underpin the favorable sales revisions, with operational efficiencies also leading to the strengthening EPS outlook.
Bottom Line
Both companies have seen great strength as of late following some rough action throughout the first few months of the year, with favorable quarterly results helping drive sentiment shifts. Favorable EPS revisions paired with strong top line performances help keep the near-term momentum story in favor, with both deserving a close look.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights Oracle and Roku
For Immediate Release
Chicago, IL – May 13, 2026 – Today, Zacks Investment Ideas feature highlights Oracle (ORCL - Free Report) and Roku (ROKU - Free Report) .
Shifting Sentiment: These Stocks Have Bounced Back Big
It’s no secret that the market has had a stellar showing over the past month, with technology stocks the primary driving force. Several stocks, including Oracle and Roku, have also seen sentiment turn around in a big way, both outperforming relative to the S&P 500.
Let’s take a closer look at how each presently stacks up.
Oracle Bounces Back
Oracle shares have seen a nice comeback over the past month, a big shift from the huge drop in sentiment that we saw beginning last September or so. The market’s opinion became rather downbeat onthe back of capital-related concerns stemming from its current data center buildout, but recent quarterly results and robust demand trends for cloud computing solutions have helped ease those concerns.
Cloud revenues soared 44% YoY to $8.9 billion in its latest release, at the high end of its previous guidance. Importantly, its remaining Performance Obligations, or RPO, ended the quarter at $553 billion, up a triple-digit 325% from the same period last year.
Sales growth has remained broadly strong for the tech titan, as shown below. Revenue of $17.1 billion throughout the above-mentioned quarter reflected a 21% YoY growth rate, reflecting the strongest growth rate we’ve seen in years from the company.
Roku Reports Record Free Cash Flow
Roku shares are benefiting from positive quarterly results that were delivered just recently, posting a double-beat relative to our consensus expectations. Importantly, its profitability picture, along with its cash generation, strengthened significantly, with gross profit climbing 27% YoY to $565 million. Free cash flow, on a trailing twelve-month basis, totaled $538.8 million, reflecting a new company record.
The EPS outlook across its current and next fiscal year have moved bullishly, with upward revisions coming in following the release. Revenue revisions have also moved bullishly across the same timeframes, painting a solid demand outlook for Roku.
Roku’s platform revenue grew 28% year-over-year as well in the above-mentioned release, with strong Advertising and Subscription results leading the charge. Total Streaming Hours also saw a nice 8% YoY climb, with the company also now reporting more than 100 million households worldwide use a device powered by the Roku TV operating system (OS) monthly.
The favorable trends among its customer base help underpin the favorable sales revisions, with operational efficiencies also leading to the strengthening EPS outlook.
Bottom Line
Both companies have seen great strength as of late following some rough action throughout the first few months of the year, with favorable quarterly results helping drive sentiment shifts. Favorable EPS revisions paired with strong top line performances help keep the near-term momentum story in favor, with both deserving a close look.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.