Roku's Huge Day

Shares of streaming video provider Roku Inc ROKU rose more than 20 percent Monday after releasing two preliminary fourth-quarter metrics:

  • Active accounts rose 40 percent from a year ago to more than 27 million.
  • Streaming hours rose 68 percent from a year ago to 7.3 billion, or around 24 billion for the full year.

Separately, Roku said it reached an agreement with Westinghouse Electronics in which the TV brand will take place in Roku's TV licensing program. As part of the agreement, Westinghouse Electronics TVs will include Roku's TV hardware platform and Roku's operating system for sale in the first half of 2019.

The move higher makes Monday Roku's best day in over a year.

Analyst Remains Bullish

Roku also benefited from KeyBanc Capital Markets' Evan Wingren who maintained an Overweight rating and $59 price target on Roku. The analyst said in a note that proprietary credit and debit card data of more than 10,000 people showed paying customers on Roku's platform accelerated from 52 percent year-over-year in the third quarter to 64 percent in the fourth quarter.

The risk-reward profile for Roku's stock remains positive, especially given the recent underperformance and "soft" sentiment surrounding the name. As such, investors should take advantage of a long-term opportunity in a "quality" name although volatility in the stock is likely to remain in place for the time being.

Roku shares traded around $41.75 at time of publication, up 23.8 percent for the day.

Related Links:

Analysts Stick With Bullish Roku Stances After Concerning Chinese Headline

What To Do With Roku's Stock Following 20% Sell-Off?

Photo courtesy of Roku.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorNewsTop StoriesAnalyst RatingsMoversTechTrading IdeasEvan WingrenKeyBanc Capital MarketsRoku OSstreaming videotv
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!