Why Roku, Carvana, and MercadoLibre Jumped Today
Thursday was a great day on Wall Street, as major indexes climbed between 1% and 2%. Investors watched the currency markets closely to see if the latest flare-up between the U.S. and China would result in extreme movements between the U.S. dollar and the Chinese yuan, and encouraging signs gave market participants more confidence about the near-term future. Solid earnings reports also helped boost several key stocks. Roku (NASDAQ: ROKU), Carvana (NYSE: CVNA), and MercadoLibre (NASDAQ: MELI) were among the top performers. Here's why they did so well.
Shares of Roku soared 21% after the streaming-video specialist released better second-quarter financial results than investors had expected. Sales climbed at a nearly 60% pace compared to year-earlier revenue, and a big part of those gains came from better performance in monetizing viewership through advertising, subscriptions, and on-platform transactions. Roku got 1.4 million more customers during the period, bring total active accounts up to 30.5 million and total hours streamed to 9.4 billion. As average revenue per user has climbed, Roku has put itself in position to get even more from its customers, and investors are optimistic that stronger guidance means an even faster growth path for the business well into the future.
Image source: Roku.
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