Roku Inc [NASDAQ: ROKU] continues its bullish trend that started way back in April. Last week, the stock made a higher low, and closed higher in yesterday’s session, indicating a possible continuation of the bull trend.
The latest bullish push follows the company/s announcement that it was adding NBC’s Peacock to its streaming services. Peacock has more than 20k hours of on-demand movies, sports and live news. Peacock is also quite unique in that it is the only platform that offers free but premium content that includes over 13k hours of the latest movies and shows, late-night shows, sports among others in both English and Spanish.
Through the deal, Peacock will now be available to the more than 100 million people that use ROKU.
Commenting on the deal, ROKU Vice President of content acquisition, Tedd Cittadine stated that there was a growing demand for quality content and it was driving Americans towards streaming services.
He added that with the Peacock deal, the company was in a position to help NBCUniversal create a much bigger audience through ROKU’s audience development technologies. This also includes a better reach to Hispanic audiences that are a key audience-base for ROKU content.
The deal also serves to give depth to the content available on ROKU. This essentially means that the company is strategically positioned to grow audience and its revenues long term. It also anchors this stock’s upside momentum as investors expect the stock to keep gaining in value, to reflect the improving fundamentals.
ROKU also stands to keep benefiting from the continued stay at home trend that started with the COVID-19 lockdowns in March. ROKU is one of the stocks that have gained tremendously during the pandemic alongside work-from-home platforms such as Zoom and ecommerce companies like Amazon.
This trend does not seem to be headed for a reversal anytime soon until a viable vaccine is discovered. So far several countries have gone back into lockdown, and in the U.S, the numbers are on the rise again. This means that people are likely to stay at home for longer.
On top of that, there is the possibility of working-from-home becoming the norm as companies discover the cost benefits that come with working from home. This errands a bright future for companies that enable it both in terms of work, and entertainment such as Zoom and ROKU.
About ROKU Inc
ROKU Inc is a television streaming platform. It is based in Los Gatos, California.