What happened
Actions of Roku (NASDAQ: ROKU) increased today after JP Morgan analyst Cory Carpenter started covering the company.
The technology stock reached 7.4% today and rose 5.6% as of 1:50 pm EST.
And
Carpenter started coverage of the video streaming platform company with a target price of $ 475 and noted that his positive sentiment towards Roku comes at a time when the company is taking advantage of the shift from traditional pay TV to streaming video. .
Image source: Getty Images.
The analyst mentioned that Roku already has 51 million active accounts and should benefit from migrating advertisers from traditional pay TV sources to streaming platform services. Carpenter pointed out that only 8% to 9% of television advertising budgets are currently directed to streaming.
Investors appeared to agree with Carpenter’s analysis and pushed the company’s stock price up today. With today’s increase, Roku’s shares have risen 230% in the past 12 months.
What now
Investors are optimistic about Roku, as the company continues to increase its active customers and blockages and social distance force people to spend more time at home. Advertisers are likely to have a greater interest in the video streaming platform company in the coming years, as more companies rush to launch their own video streaming services.