Why Roku, GTT Communications, and ViewRay Jumped Today
The stock market had a rough session on Monday as investors had to assess ongoing challenges on the macroeconomic and geopolitical fronts. In particular, China is increasingly becoming a hotbed of potential problems. The long-standing trade disputes with the U.S. show few signs of getting resolved soon, and recent protests in Hong Kong raise the possibility of further complicating U.S.-China relations. Yet some stocks did manage to post solid gains. Roku (NASDAQ: ROKU), GTT Communications (NYSE: GTT), and ViewRay (NASDAQ: VRAY) were among the top performers. Here's why they did so well.
Shares of Roku climbed another 7%, adding to gains from last week. Investors are excited about the streaming-video provider's prospects, and stock analysts at Needham boosted their price target on Roku by $30 per share to $150. In Needham's opinion, Roku is in the best possible position to benefit from rising adoption of video streaming, even above some better-known pioneers in the industry. The company's advertising-driven revenue model leaves it more vulnerable to changing ad trends, but it also keeps it from having to woo subscribers into paying recurring monthly fees, and many think that Roku's model will win out in the end.
Image source: Roku.
Source Fool.com
