Roku Inc (NASDAQ: ROKU) is having an incredibly strong day in the market today on its second day of trading. As the day rolls on, investors seem to be getting more and more excited about what the company has to offer. Nonetheless, our partners at Trade Ideas were the first to alert us to the gains. At the moment (10:51), ROKU is trading at $26.68 per share after a gain of $3.18 per share or 13.55% thus far today.
Why Are Investors So Excited About ROKU
Roku has done incredibly well with its IPO so far. Not only is the stock up dramatically today, yesterday when the IPO launched, the stock jumped 66.14%. So, what is it that has investors so excited about Roku? Well, the answer is relatively simple.
You see, the company has taken a serious hold of the increasingly competitive streaming video industry. The company has contracted with various television manufacturers to run smart televisions on their software.
While the streaming landscape is definitely a competitive one, ROKU has carved out its own niche within this landscape and has virtually no competition to show. You see, more and more consumers are switching to streaming entertainment through companies like Netflix, Amazon, Apple, Hulu and others. As more and more companies continue to expand their streaming services, there was a need to tie these services together in one interface, giving consumers the ability to see all of their favorite streaming services in a single place. Well, that’s exactly what ROKU has done.
This is a genius move. After all, competing in the streaming space at the moment would be a bad move. There are already big names that have the industry under wraps. However, the ability to unify these competing services into one single platform brings a level of user friendliness to the industry that has not been seen in the past. In doing so, Roku has bypassed any threat from competitors and created a system that is incredibly unique and likely to continue to take charge in the streaming entertainment space.
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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. While we do believe that we’re going to see a correction in the stock relatively soon, bringing it to a more realistic price following the IPO excitement, we are excited for the long-term value this stock likely holds. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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