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Roku Climbs on Upgrade Amid Streaming Wars -Breaking


© Reuters

By Liz Moyer — Roku Inc (NASDAQ) shares rose by 5% after Pivotal Research increased its rating to Hold from Sell. They stated that Inc is not an appealing short-selling option.

While the streaming device company has forecasted a revenue growth rate of 35% in 2022, shares fell 60% due to increased competition.

The business is “attracting dramatically larger companies with significant leverage that are not necessarily focused on generating an economic return specifically in streaming aggregation, but as a tool to gain subscribers/sell equipment” in other areas, said Pivotal analyst Jeffrey Wlodarczak.

Pivotal targets a $80 price for the stock. It was currently trading at $93. The stock is still well below its July high of $490.76.

Cathie Wood recently added Roku to her ARK Innovation eTF (NYSE:). Roku, which now accounts for 8% of the portfolio’s total holdings, is second only to Tesla Inc (NASDAQ,:). Zoom Video Communications Inc (NASDAQ:).