Roku (ROKU) Stock: Why It Increased 8.08%

By Amit Chowdhry ● Jun 22, 2022
  • The stock price of Roku Inc (NASDAQ: ROKU) increased by 8.08% in the most recent trading session. This is why.

The stock price of Roku Inc (NASDAQ: ROKU) increased by 8.08% in the most recent trading session. Investors are responding positively to a bullish research report.

Needham & Company analyst Laura Martin reiterated a “Buy” rating on the shares. And Martin assigned the company a $205 price target.

Martin had cited 4 reasons for the rating including:

1.) The streaming wars will be won by ad-driven business models as free always has the largest TAM

2.) In the EU and U.S. consumers who opt-in are the most valuable

3.) U.S. streaming is considered mature so minimizing churn in the most important upside value driver

4.) AdTech is converging with streaming, making the tech stack as important as content for minimizing churn

“ROKU sits at the apex of all 4 of these trends. ROKU is 100% ad-driven streaming, with an active installed base of >60mm US homes (ie, 50% of total US homes), with 100% opt-in from consumers, and its Walled Garden structure maximizes ad innovation,” wrote Martin in a research note.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.