Roku, Inc. Could Be Experiencing a Short Squeeze

Roku, Inc. Could Be Experiencing a Short Squeeze

Roku's (NASDAQ: ROKU) third quarter was good, but not this good. Shares have now more than doubled in the three trading days since Roku's first earnings release as a public company. It's also not as if there has been a string of other positive news, other than an announcement today that Japan's Funai Electric, which makes TVs under the Philips brand, has joined Roku's TV licensing program and will soon integrate Roku's TV streaming platform. That's undoubtedly good news, but probably not worth the $925 million that Roku added to its market cap today.

Is a potential short squeeze -- in which short-sellers buy back shares -- what's driving the gains?

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Source: Fool.com