Roku Gets A Serious Wall Street Endorsement

Dear Rundown Reader,

We kicked off today’s work day in Baltimore at a toasty 91°.

You’d like to think summer is an all-outdoors season. But in truth, sometimes it’s just too hot out.

Did we mention humidity is 80% this morning too?

On days like this, sometimes the best solution is to stay inside.

And what better way to enjoy some leisure time in the AC than with top notch streaming media.

That’s why companies like Roku, who fill this want, are finding huge success.

It’s also why Roku shares received a major upgrade from Wall Street recently.

Today’s Rundown peels back the layers to examine what’s next for Roku owners.

But first…

Markets are closed tomorrow for the July 4 holiday. As such, no Rundown Wednesday.

We wish you have a safe and happy holiday.

Your Rundown for Tuesday, June 3, 2018…

Roku Shares Receive Premium Upgrade

A surprise story this week brings good news for Roku (NASDAQ: ROKU) shareholders.

CNBC reports this morning, Oppenheimer has upgraded its outlook on ROKU shares to “outperform.”

And Oppenheimer isn’t the only big name that likes ROKU’s chances in the second half of 2018.

A recent MarketWatch report noted, KeyBanc Capital Markets analysts saw “accelerating growth in customers on the ROKU platform,” and were now bullish on the company.

CNBC also reported earlier in June, investment firm Macquarie Research has ROKU rated at outperform, “citing the company’s strong position in the growing streaming video market.”

The bull votes are clearly in.

Shares are up over 5% pre-market this morning, broaching levels not seen since the February sell-off.

Roku

And this is good news for Roku owners.

ROKU IPO’d last September, opening with an incredible surge that saw shares move from $14 to almost $60 in three months.

At the turn of the year things began to fall apart and the stock lost over a third of its value by May.

Since hitting bottom almost two months ago, ROKU shares are up roughly 42%.

And it appears this run is sustainable as well.

MarketWatch reports, KeyBanc cites ad revenue generated from ROKU’s Channel service is a tailwind that should last a while.

Additionally, The Wall Street Journal notes, ROKU has secured ad contracts with Fox, AT&T, and Viacom “to sell ad inventory in ROKU’s ‘audience marketplace’.”

Sounds like a nice way of saying the cord-cutters.

But it also sounds like ROKU finally has things figured out from the revenue side.

Which could bode well for shares moving forward.

Now, turning to the markets this morning…

Market Rundown for Tues., June 3

Yield on the 10-Year Treasury sits at 2.878% this morning, up 0.011.

S&P 500 futures are up 12.25 at 2,739.

Oil’s up $0.90 to $74.84.

Gold’s up $7.10 to $1,248.

Bitcoin goes for $6,578 this morning, according to CoinDesk.

Again, no Rundown Wednesday.

We’ll talk again on Thursday.

Have a safe and happy holiday!

For the Rundown,

Aaron Gentzler

Aaron Gentzler

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Aaron Gentzler

Aaron Gentzler is the publisher of Seven Figure Publishing. He is also the editor of The Rundown and has been with Agora Financial / Seven Figure Publishing since 2005. He's been covering technology and markets for over a decade.

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