- NASDAQ:ROKU reaches a last-minute deal with NBCUniversal to keep programming available on Roku devices.
- Roku shares vaulted up over 17% after the announcement.
- The stock has been one of the biggest winners during the COVID-19 quarantine.
NASDAQ:ROKU has been one of the companies that have benefited from the global pandemic as people find themselves staying inside with their Roku devices. Shares are up over 110% since the end of March, and on Monday the stock hit a new all-time high of $189.80. The market cap of the company has nearly doubled over that same timeframe and while bigger names like Apple (NASDAQ:AAPL) and Netflix (NASDAQ:NFLX) still dominate the streaming landscape – Roku holds a unique position in the market as both a device and middleman for streaming services.
The agreement with NBCUniversal was an important one for Roku as a possible deal looked like it was about to fall apart as recently as this past weekend. Roku is now able to keep NBC programming which includes the upcoming launch of NBC’s flagship streaming offering: Peacock. The introduction of Peacock to the crowded streaming sector could mean trouble for industry leader Netflix as two of the most streamed shows of all time, The Office and Friends will be removed by the end of the year. Whether this is enough to generate a migration of customers from one service to the other remains to be seen.
Roku stock forecast
Upon the news of the deal with NBCUniversal, Rosenblatt Securities analyst Mark Zgutowicz upgraded the price target of Roku to $195 and doubled down on his buy rating. Roku now has nearly a full stable of all of the major streaming services except for HBO Max, which Zgutowicz believes Roku can lock up prior to this holiday season. With the coronavirus pandemic anticipated to continue into 2021 – Roku should see further growth in its user base of 43 million active accounts by the end of the year.
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