Shares of video streaming platform Roku (NASDAQ:ROKU) are on fire.
Bucking a softening in the broader technology sector, Roku’s stock has been rising sharply in recent trading sessions after the company announced that its Roku Channel will be available on Amazon Fire TV, news that Citigroup bank called "an extraordinary development."
Since mid-September, Roku’s share price has risen 40% to its current level of $223.84 U.S., an all-time high. The company has said that it is committed to expanding the reach of the Roku Channel beyond its own operating system. The deal with Amazon will greatly expand Roku’s revenue, according to the company and analysts.
Roku stock is up 250% since its March low when stock markets around the world cratered due to the COVID-19 pandemic, and has gained 40% since it announced its deal in mid-September to carry Comcast’s Peacock (NBC TV) streaming service.
Citibank and Deutsche Bank have each raised their price target on Roku stock in recent days. Deutsche Bank raised its Roku target to $235 U.S. per share from $185 U.S. and reiterated its "buy" rating.
