The number of streaming hours surged 68% to 7.3 billion hours in the fourth quarter, surpassing analysts’ forecast
The impressive user count will attract more advertisers and content providers who want to use Roku’s platform as a medium. However, investors are cautioned that uncertainties associated with the Beijing-Washington trade war could play spoilsport, reversing the current rally and dragging the stock to the lows seen last month. Most of the analysts who cover Roku recommend a buy, followed by overweight. Their average price target is $59.62.
The final results for the fourth quarter are scheduled to be released in the first week of next month. Earlier in the day, Roku said television manufacturer Westinghouse Electronics will join its TV licensing program.
Roku stock rises as it adds premium subscriptions to The Roku Channel
Roku’s TV streaming hardware allows viewers to access and search a huge collection of movies and videos on multiple streaming platforms, offering a hassle-free viewing experience in a cost-effective manner.
Roku shares have been in a free fall since October last year after hitting a record high. They opened Monday’s trading sharply higher and gained about 24%. Registering one of the biggest intra-day gains in recent times, the stock crossed the $40-mark during the session after staying below that level for more than a month.