Roku's Secondary Offering: Here's Everything Investors Need to Know
The stock for video streaming pioneer Roku (NASDAQ: ROKU) has been on fire this year, so any bit of uncertainty about the company seems enough to cause a bit of profit-taking. The stock was up about 422% as of the market close on Monday, making it one of the best-performing stocks of 2019.
This week, the company revealed in a regulatory filing with the Securities and Exchange Commission (SEC) that stockholders would be selling up to 571,549 Roku shares related to its recent acquisition of DataXu. On the heels of that filing, Roku announced a secondary share offering, selling up to 1 million shares of Class A common stock, which could add as much as $160 million to Roku's coffers based on the stock's closing price on Monday. This caused Roku shares to fall as much as 7% in the wake of the filings.
Let's break down these two announcements to see what they mean for investors.
Source Fool.com
