What Happened: Shares of streaming TV platform Roku (NASDAQ: NASDAQ:ROKU) jumped 6.5% in the morning session after Cannonball Research analyst Vasily Karasyov upgraded the stock's rating from Neutral to Buy and assigned a price target of $116. The price target indicates a potential 14% upside from where shares traded when the upgrade was announced. The upgrade is based on the analyst's optimistic outlook for fiscal 2024, anticipating more significant upward estimate revisions and sustained market share gains for Roku in the connected TV space.
Is now the time to buy Roku? Find out by reading the original article on StockStory.
What is the market telling us: Roku's shares are very volatile and over the last year have had 38 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 26 days ago, when the stock gained 15.6% on the news that the company reported third quarter results that exceeded analysts' revenue expectations, driven in part by better active account growth. While revenue guidance for Q4 was in line, adjusted EBITDA guidance was well ahead, and that was probably the most exciting aspect of this earnings report. Overall, this quarter's results seemed fairly positive, and shareholders should feel optimistic.
Roku is up 152% since the beginning of the year. Investors who bought $1,000 worth of Roku's shares 5 years ago would now be looking at an investment worth $2,608.
