There are many reasons to assume that shares have been overwally, generally speaking, motivating me to move beyond some old duds in my portfolio.

For the beginning, consider for the market Initial public offerings (IPO). Companies usually wait for the market to become public until the market situation is hot. High stock assessments allow IPO companies to raise more funds. Below-average IPO in 2022, 2023 and 2024, after years, this year is giving shape to be up-to-average for new listing.

An increase in IPO shares in 2025 suggests that the stock market evaluation is more. And this suggestion can be carried forward. According to ycharts, Price-to-Kam (P/E) ratio For S&P 500 It is 28, which is above its average of 25 years of 25.

S&P 500 P/E Ratio Data by Ycharts

Some investors may use this information “market timing“Selling all their shares. I believe this is wrong takeway – no one is telling what will happen to the market ahead. But for me, my portfolio has stocks that I want to move forward. I think, now, now, it is now. Any time to sell is good These are potentially overwelled given the stock market.

I recently given a connected-TV platform company Roku ,Roku 0.50%, A difficult look. I started buying shares in 2020 and continued to buy in 2022. My entire position is about 15% less as this writing, even though S&P 500 has dramatically increased during my holding period. But I eventually decided to hold a grip for an important reason.

it’s early. But till now, I am happy with my choice. On 16 June, Roku acquired a deal Heroic ,AMZN 2.66%,And it outlines why I still did not sell the Roku stock.

Why stop the ability to stop

For eight consecutive quarters, Roku has sold its hardware equipment for gross damage – it sells them for less than the cost to make them. This does this because it is more interested in taking market share And one is becoming Advertising technology (Adtech) in Titan Connected TV (CTV).

When it comes to Edtech, TV screens are the most desirable advertising medium, and Roku Power TV in over 90 million homes. Not only the video format is attractive for advertisers, but Roku has an interesting value proposal: it can “close” the loop in the advertisement.

Over the years, Roku has some interesting partnership with companies. Kogar, Wal-martAnd Cox Automotive. Take cox automotive partnership for illustration. It owns the popular Kelly Blue Book Platform. Through the partnership, the Ruku may show how viewers are actually responding to vehicle advertisements. If they see an advertisement and then go to Kelly Blue Book for better information, this is an important data point for advertisers.

In this scenario, Roku and Cox Automotives work together to close the loop as much as possible.

Roku’s partnership with Croger and Walmart can do the same things. Consumers can advertise on the brand Roku, know who saw an advertisement, and know if they bought anything in Kogar or Walmart as a result. Assuming that Roku can display a high return at advertising expenses, the demand for its platform should increase, so that it can command better advertising rates.

Will Ruku finally be able to capitalize?

Now Roku is partnering with Amazon, and the capacity is the same. Amazon is the largest e-commerce company in the world and perhaps know more about consumers than any other retailer. This makes Amazon’s advertising solutions quite popular and explains how its advertising business grows so soon.

Through the new partnership, Roku and Amazon are expected to win. This is a possible win for Roku as advertisers will have data from Amazon and can better target the audience of Roco. This is also a possible win for Amazon because the Ruku remains the top player in the space (despite Amazon’s concerns about the investors’ concerns).

Image Source: Roku.

In short, I believe Roku’s partnership with Amazon is big news for investors, and this is the exact same news that keeps me as a shareholder. But allow me to refer to the news a little more.

The capacity of Roku has been sky-high, but it has been a disappointment in recent years.

Roku produced higher Average revenue per user (April) This was done in 2024 compared to 2022. And the management still does not break this metric, suggesting that the number is still disappointing. But the number of spectators has increased dramatically. It should have taken the arpu alone. The only logical explanation is that the demand for advertisement has not just increased, as may provide theoretically theoretically.

Roku’s partnership with Amazon is expected to be officially launched before the end of the year. If the partnership cannot improve the mudification of Roku at any point in 2026, I do not know what will happen. Failure to see sufficient improvement with Roku at some point in 2026 may suggest that it is finally time to move beyond the once growing stock.