Here's Why Roku Stock Popped Today
Shares of Roku (NASDAQ: ROKU) jumped 9% on Wednesday on rumors of a potential combination with Netflix (NASDAQ: NFLX).
Speculation over a deal is swirling among Roku's employees, according to a report from Business Insider. Interestingly, Roku is said to have halted its employees' ability to trade its stock. Trading restrictions of this type tend to occur when a company expects to announce news that could materially impact its stock price.
Many of Roku's employees have seen the value of their holdings in the digital-media platform plunge in recent months. Intensifying competition in the streaming arena and a rotation out of so-called stay-at-home stocks have contributed to the sharp decline in Roku's share price. Should Netflix make a bid for the company, Roku's employees could see the value of their shares skyrocket.
Source Fool.com
