Why Roku Shares Rose on Thursday

Shares of media-streaming technology expert Roku (NASDAQ: ROKU) traded 8.2% higher at 2:15 p.m., EDT on Thursday in a surge caused by a bullish analyst report.

Needham analyst Laura Martin reiterated her buy rating and $150 price target for Roku's stock, pointing out that the digital advertising market should bounce back after hitting a COVID-19-related bottom in the second quarter of 2020. Martin's channel checks pointed to strong hours-viewed metrics in Roku's second quarter, undermined by weak ad spending in key categories such as travel, autos, and entertainment.

The key insight in the Needham report is that advertisers are likely to hold back $7 billion of expected ad spending in this year's up-front TV market, allowing Roku and others to compete for a share of those delayed ad dollars in the second half of this year.

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Source Fool.com