Active Stocks: Roku Inc. [NASDAQ: ROKU] was one of the most traded stocks in Monday’s trading session. In the day, 19,614,336 shares of the stock were traded. The stock’s price jumped by 7.17% to close the day at $134.30. I recently covered ROKU on June 6th when it was trading around $101.17 in my news article titled, “NASDAQ: ROKU Surges After Guggenheim Raises Target to $119 – Fundamentals Getting Stronger Too.” As of today ROKU is the focus of analysts, as several of them have raised their targets. Yesterday, a Needham analyst raised the price target for this stock from $120 to $150. Other analysts too have upgraded their outlook on Roku. On the 8th of August, Stephens’s analysts upgraded this stock from Equal-Weight to Overweight. On the same day, Rosenblatt analysts upgraded this stock from Neutral to Buy.
In a Bloomberg Interview, Mark Mahaney of RBC Capital stated that, the company is a major beneficiary of the upcoming streaming wars. He stated that the company is a major launch partner for Disney’s Disney+ service, and also an Apple partner. He also touched on the company’s potential in the international market. Mark further added that the only reason why they are not buying it is due to valuations. To quote him,
“We are not buyers here because of valuations, but I would love to see a pullback. I just don’t have a particular reason why it should pull back anytime soon.”
Roku recently announced its Q2 results and they were impressive. The company announced that its revenues had hit about $250 million. This represents roughly a 59% growth, year-over-year. The company’s management stated this growth is attributable to monetized video ad impressions, which doubled since last year.
Going by its price action, the company seems to be gaining upside momentum. In pre-market trading, ROKU is up by 0.34% to trade at $134.76. It is trading within Monday’s range of $129.43 and $136.53, and currently has a market cap of $15.215 billion. The stock is up by about 330% year-to-date, and with positive analyst sentiment, and a gap up, it is clear that the bulls are still in charge.
About Roku Inc
Roku Inc is a television streaming company that has its headquarters at 150 Winchester Circle Los Angeles CA. The company operates two segments, namely: A streaming platform and a player one. Through these two segments, it offers movies, television, live sports, news, and other streaming services. Roku offers services through distributors but also offers direct to customer services in the U.S, U.K and a number of other countries. It’s a major competitor to Netflix in the streaming market.