Here's How Roku Stock Soared 50% Last Month
Shares of media-streaming technology expert (NASDAQ: ROKU) rose 50.5% in July, according to data from S&P Global Market Intelligence. The company had its ups and downs last month, but one market-moving event stood out among the rest. Roku reported strong business results for the second quarter, leaving analysts flat-footed and investors inspired.
The average Wall Street analyst expected Roku to report an adjusted net loss of $1.27 per diluted share in the second quarter, based on roughly $773 million in top-line sales. In the actual report on July 27, Roku left these targets far behind. The net loss stopped at $0.76 per share, slightly better than the $0.82 loss per share seen in the year-ago period. Sales rose 11% year over year to $847 million. Roku's stock closed 31% higher the next day.
Management set up third-quarter guidance targets slightly above the Street views at the time, citing "recovery signals" in the struggling digital advertising market and generally rising viewership metrics. The recently introduced cost-cutting program remains in effect. Roku's operating expenses should increase slower than usual in the third quarter as the all-important media and entertainment (M) ad-buyer segment wrestles with diminished content schedules in the fall amid Hollywood's twin strikes.
Source Fool.com
Roku Stock
Currently there is a rather positive sentiment for Roku with 29 Buy predictions and 7 Sell predictions.
With a target price of 93 € there is a hugely positive potential of 71.14% for Roku compared to the current price of 54.34 €.
