Roku Rallies on Street-High Price Target as Quibi Talks Underway By

© Reuters.

By Christiana Sciaudone —   Roku (NASDAQ:) rose 4% after getting a Street-high price target from Wells Fargo (NYSE:), ahead of a potential acquisition of Quibi.

The firm boosted its price target on the streaming provider to $414 from $275 as we keep streaming. 

Shares hit a record last month, after more than doubling over the year. Wells Fargo is seeing opportunity in AVOD: advertising-based video on demand, in which ad revenue is used to offset production and hosting costs.

“Despite a strong rally in Roku we think there is a big runway for ROKU’s AVOD-driven ARPU in 2021+,” Wells Fargo analyst Steven Cahall said in a note. “Streaming behaviors for the 2015-2019 period were largely driven by content on subscription video on demand (e.g. NFLX, Amazon (NASDAQ:) Prime, Disney+) and YouTube, whereas 2020 and beyond suggests a big push into monetizable AVOD.”

Quibi was the biggest bust of the streaming boom. But it has something Roku wants — more than 100 original programs.

Roku is in talks with the failed service Quibi, which announced that it was closing six months after a much-hyped introduction, The New York Times reported, citing a person familiar. The deal is apparently close to completion. Quibi was created by film producer Jeffrey Katzenberg.

Yesterday, Roku started streaming Discovery (NASDAQ:) Plus alongside Amazon’s Fire TV, The Verge reported. Discovery Plus will include shows spun off from Discovery channel stalwarts, like 90 Day Fiancé, a new travel and food series from Bobby Flay and Giada de Laurentiis of the Food Network and and a new series from Magnolia Network’s Chip and Joanna Gaines, hosts of the Fixer Upper home repair series.

On the other side of the table, Netflix (NASDAQ:) fell slightly after Rosenblatt said it sees churn risk as The Office moves to NBC’s Peacock and prices rise.


Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Show More

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button