Here's Why Roku Stock Unexpectedly Jumped Today
Shares of connected TV platform company (NASDAQ: ROKU) jumped Wednesday morning after Needham analyst Laura Martin said she believes that Roku will be acquired at a hefty premium in 2025. As of 11:30 a.m. ET, Roku stock was up by 10.5%.
For context, Amazon began airing limited ads on its Prime Video service in 2024, and it plans to increase the amount of commercials it shows in 2025, making use of the vast trove of retail data it has from its e-commerce platform. Likely in response, Walmart decided to acquire Roku rival Vizio, a deal that closed Tuesday. Now, Walmart, too, will be able to make use of its consumer data to help it sell effective advertising on connected TV.
As retailers look to better monetize their businesses through advertising, having consumer data and advertising reach are important. As of Q3, Roku devices were being used in more than 85 million households, and users streamed 32 billion hours of video in that quarter alone. Direct access to an audience of that scale would be extremely valuable to some company out there.
Source Fool.com
Roku Stock
The stock is one of the favorites of our community with 48 Buy predictions and 1 Sell predictions.
However, we have a potential of -0.73% for Roku as the target price of 136 € is below the current price of 137.0 €.
