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Roku Stock Is at an All-Time High


Jun. 6 2019, Updated 8:32 a.m. ET

Roku stock has been on a tear

Streaming device maker Roku (ROKU) has been on a tear this year. The stock soared 8.7% on June 5 to reach another all-time high. The stock ended the day at $101.7. ROKU is now up a whopping 237% year-to-date.

Roku’s recent growth has been driven by its ad business, which is growing much faster than its traditional streaming device business and now makes up 64.9% of its overall revenue.

The company’s platform business, which includes its ad business, is also much more profitable than its player businesses. The former had a gross margin of 69.9% in the first quarter compared to the latter’s 9.8%.

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Roku stock surged nearly 9% after an upgrade from Guggenheimer

The most recent jump in Roku stock came after Guggenheim expressed optimism about the stock and upgraded it from a “neutral” to a “buy.”

Guggenheim’s Michael Morris said in a note to investors, “Roku is one of the only pure-play streaming video companies and is uniquely well positioned to benefit from the continued audience shift to digital video consumption.”

Guggenheim also said that Roku generated $0.04 per hour in ad revenue during the first quarter compared to $0.19 per hour generated by traditional TV.

The company is on track to reach its goal of generating $1 billion in revenue this year.


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