Is Roku Too Hot After Earnings?

Is Roku Too Hot After Earnings?

In a year including some notably disappointing IPOs, Roku (NASDAQ: ROKU) appears to be the rare exception. After pricing its initial public price at $14 per share, good for a $1.3 billion valuation, shares have ran up to approximately $50 per share, providing early investors with a near 250% return in less than two months.

The impetus for Roku's recent leg up was the third-quarter earnings report. Colleague Erik Volkman provides more detail, but the company handily beat analyst estimates of $110.5 million in revenue with an adjusted EPS loss of $0.28 by reporting $124.8 million on the top line and a narrower adjusted EPS loss of $0.10. In response, shares exploded during the post-announcement trading session, climbing 55%.

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Source: Fool.com