Roku (ROKU)

The sleeper story is advertising gross margin expansion to all-time highs of 60%+ driven by home screen monetization improvements-this is structural margin enhancement hiding in the growth narrative. Everyone will focus on the 28% platform revenue growth, but the real story is the deceleration to 20% in Q2 guidance despite easier comps, suggesting second-half weakness beyond political uncertainty. The binding constraint is device economics deteriorating faster than disclosed, with ASP pressure and memory costs creating a -14% margin drag that's worsening. Wood's most revealing quote: 'We're being a little conservative on our second-half outlook' admits limited visibility despite being in an election year. My view changes if they quantify the device ASP decline rate or provide specific political revenue expectations for H2.