Roku's reliance on advertising makes it an attractive buy as competition for streaming video subscriptions ramps up, Needham says.
Roku, which sells hardware and advertising, is poised to take a large chunk of the $70 billion U.S. television ad market while Netflix struggles with increased competition for subscriptions, Laura Martin and Dan Medina of Needham said in a client note Monday.
"Roku is the dominant internet aggregator for streamed TV & movie content, like YouTube is for user generated content, at about 1/20th the valuation," the analysts wrote. Needham, which has a buy rating on the stock, estimated that Roku reaches 80 million Americans. The firm raised its price target on Roku to $150 per share from $120. Shares rose 2.6% in premarket trading.
Roku provides a menu of streaming video services on a platform that allows for targeted advertising. It does not charge subscriptions or spend large amounts of money on content, like Netflix and Hulu, but it does negotiate revenue sharing agreements with the streaming services it offers.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
Here are the biggest risks Uber's facing, according to Wall Street analystsFrom not turning a profit, to being beat by competitors on self-driving cars, here's what's keeping Wall Street analysts up at night.
Baca lebih lajut »
Use this trick to rotate your Netflix videos so you can watch movies and TV shows more comfortably in bed'Netflix Flip' is a free Google Chrome extension that flips Netflix videos, a perfect solution for watching Netflix in bed without craning your neck.
Baca lebih lajut »
Lady Gaga’s Being Threatened With a “Shallow” Lawsuit Over a 7-Year-Old SoundCloud SongLady Gaga is being threatened with a multimillion-dollar lawsuit by a SoundCloud guy named Steve Ronsen—here's what her team has to say.
Baca lebih lajut »
What Helps Your Brain Age Better: Steady-State Exercise or HIIT Workouts?Better blood flow to your brain means a lower risk of dementia as you get older, researchers say.
Baca lebih lajut »
The top 9 shows on Netflix and other streaming services this weekThis week's most in-demand streaming shows include Netflix's '13 Reasons Why' and Amazon's 'The Boys.'
Baca lebih lajut »