ROKU stock price movement

Video streaming device maker and platform Roku Inc (NASDAQ:ROKU) had been one of the best-performing stocks this year due to its impressive growth in recent quarters. In a new development, the Roku stock experienced another impressive rally on Monday and jumped by as much as 10% as investors piled on to the stock following bullish comments from an analyst.

What Are Analysts Saying?

Ziv Israel, who is an analyst at Bank of America, sent out a highly bullish note with regards to Roku and that seems to have triggered the rally. In the same note, Israel stated that the bank is going to initiate coverage on the stock and also rated the stock as a ‘buy’.

A few weeks back the Roku stock had suffered a bit of a slump due to the emergence of competition in the streaming devices market. The new product from Comcast, which is also going to be given away for free to internet-only customers, had created some pessimism in the market.

The $40 Billion Dollar Content Gold Rush

However, Israel believes that the potential of the competition is being overstated at this point. He said that Roku has a competitive advantage by virtue of its operating system for streaming and in addition to that Comcast’s free offering could end up costing customers more.

Citing these factors, the analyst went on to classify the Roku stock as a ‘buy’ and set the 12-month target price at $154. That being said, it is important to keep in mind that the streaming industry and the whole market by extension, are changing at a rapid pace. Tech giants like Apple are entering the free and it is not completely inconceivable that they are going to come up with their own devices.

The company has projected Q3 2019 revenues to be in the range between $250 million and $255 million. If the company manages to generate $252.5 million (midway), then it would reflect year on year growth of 46%.

The stock has soared over 45% since the beginning of October. Moreover, the stock is just 17% away from its all-time high of $176.55.

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

The $40 Billion Dollar Content Gold Rush

Apple, Disney, Netflix, Amazon, NBC, Hulu & More are All Competing Within the Global Video Streaming Market and They All Need the Same Thing…

Multi-Trillion Dollar Industry Providing Massive Opportunity in 2019 & Beyond

The most recent global report from the United Nations states that by …

1 Biotech Stock is Positioning Itself for Success

Biotech has always been one of the best performing sectors in the market. A number of biotech stocks have produced life-changing returns because of their treatments and opportunities. You wont believe what this 1 stock is doing…

What Curing Cancer & HIV Could Mean for This Company, Its Investors & The World!

The opportunity for companies within this sector is massive we are now talking about an industry that is currently worth over US$ 100 billion with the potential in the next 6.5 years to be worth over US$ 200 billion.