Why Roku Stock Is Soaring Today
Media-streaming technology expert Roku (NASDAQ: ROKU) is scheduled to report fourth-quarter results after today's closing bell. The stock is surging higher ahead of the holiday-season business update because investors found encouragement from a robust report elsewhere in the digital media and advertising sector. The stock started climbing early in the morning and continued trending upward until press time; share prices were up by 12% at 2:39 p.m. ET.
Online marketing campaign optimizer The Trade Desk (NASDAQ: TTD) reported fourth-quarter results on Wednesday morning, beating Wall Street's expectations across the board and setting revenue guidance for the next quarter well above the current Street view. The Trade Desk's stock had gained 26% at the time of writing. The Trade Desk's management also talked about improving market trends in the digital advertising sector, driven by old-school ad buyers taking their budgets online instead.
That's excellent news for Roku, whose stock price was decimated in recent quarters as investors worried about its ad-based revenues. If The Trade Desk's bullish market analysis applies to the rest of the online marketing sector, Roku should also have good news to share after the closing bell today.
Source Fool.com
