Why Roku Shares Jumped 5% on Tuesday Morning
Shares of media-streaming technology expert Roku (NASDAQ: ROKU) rose as much as 4.9% on Tuesday morning before falling back to a milder gain of 3.4% by noon ET. There were two good reasons behind Roku's jump. First, the market as a whole decided that it had been mistreating growth stocks recently in light of some positive coronavirus news. Second, Roku took a small but meaningful step in the quest to expand its business overseas.
This morning, several sources indicated that existing vaccines look effective against the omicron variant of the coronavirus and that this ultra-virulent version of the disease appears to cause milder health problems in the people it infects. That's good news for consumers and businesses around the world, and it was no surprise to see the stock market breathe a collective sigh of relief. The tech-heavy Nasdaq Composite index was up by 3% at the time of this writing, ahead of the broader S&P 500 index at 2%.
As of Monday evening, Roku shares had fallen 24% in three weeks. The positive COVID-19 news lifted a huge weight off the growth stock.
Source Fool.com
