Roku Inc (NASDAQ: ROKU) is having an overwhelmingly strong start day in the market today. Digging into the ticker, you’ll see that there are multiple pieces of news causing the gains today. First and foremost, there’s a deal on the table with Walt Disney surrounding ESPN, there was also a filing surrounding a large stake being taken in the company and an analyst has gone bullish. Today, we’ll talk about:
- The news leading to gains in ROKU;
- what we’re seeing from the stock;
- and what we’ll be watching for ahead.
Here’s Why ROKU Is Up
As mentioned above, the gains that we’re seeing in the value of Roku are the result of three bits of news that were released this morning. Here’s what’s going on:
- Deal With Disney – Late yesterday, the news broke that Roku has signed an agreement with Walt Disney Co. The agreement surrounds the Disney owned sports entertainment network known as ESPN. Ultimately, this agreement will allow for new ESPN+ streaming services to be available on Roku devices.
- Point72 Asset Management – In other news, Stephen A Cohen’s firm, Point72 Asset Management submitted a filing surrounding a stake in the company. According to the filing, Point72 now owns 5.1% of outstanding shares of ROKU.
- Needham – Finally, news broke that Needham analyst Laura Martin has reiterated her bullish opinion surrounding ROKU. In fact, the reiteration came in a note titled “If you like Netflix, buy Roku.” The note was released shortly after Netflix smashed earnings expectations, sending the stock soaring.
What We’re Seeing From The Stock
With such positive news coming in every direction, it’s no surprise that Roku investors are excited today. At the end of the day, every bit of news that has come out in the last 2 days has not only been positive, it’s been catalystic. Putting these three catalystic events together, we get a run like what we’re seeing in the market today. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (11:13), the stock is trading at $36.89 per share after a gain of $3.87 per share or 11.72% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on ROKU. In particular, we’re interested in following the company as it continues to expand the number of apps available on its devices and sales continue to expand. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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