- Business Insider reported rumors that someone acquired Roku.
- According to hearsay from company employees, the buyer is Netflix.
- ROKU’s stock is down 80% from its all-time high.
Roku stock (ROKU) rose nearly 12% on Wednesday morning after Business Insider reported rumors that Netflix may be interested in buying the streaming platform and hardware provider. Currently, the shares are trading one hour into trading for $104.51, up 11.9%.
Read also : Apple Stock Deep Dive: $100 AAPL Price Target on 2023 Revenue Decline
Business Intern reported that the fact that Roku recently closed its employee swap window for insiders, a move that often foreshadows a material shift in a stock, left company employees reading the tea leaves and predicting that netflix will redeem them. This may make sense since ROKU Stock is down about 80% from its all-time high. Company executives and key people are paid in stock, and some say the stock price is driving a talent drain.
Moreover, after the most recent earnings call which showed Netflix loses subscribers for the first time in a decade, management said it was considering entering the advertising business with a cheaper version of Netflix paid for through targeted ads. Targeted video ads are exactly Roku’s forte, so the syndicate could be a perfect fit if it can be accepted by regulators.
However, not everyone is happy with the rumor.
Rich Greenfield, co-founder of Lightshed Partners, told CNBC that he thinks Roku would be a bad acquisition for the king of streaming. “I think that’s one of the most absurd things I’ve ever heard,” Greenfield said. “Netflix owns hardware, prioritizing that hardware over the thousands of devices Netflix runs on seems completely antithetical to anything that [co-CEO] Reed Hastings and [co-CEO] Ted Sarandos built.”
Roku Stock Chart: Next Target at $110.50
ROKU Stocks are stuck around $104 in the first hour of trading. In order to continue the rally, ROKU shares need to rally back past the early May high of $110.50. A good trend is that the Moving Average Convergence Divergence (MACD) The indicator has been crossing for the past few weeks and the blue MACD line is starting to move away from the orange signal line.
For a month and a half, ROKU Stock also set up a triple bottom on the weekly chart, starting with the late April low at $75.93. Triple bottoms lead to stock price increases in most cases, and this price level also remains long-term support.
ROKU Weekly Chart
Like this article ? Help us out with some feedback by taking this survey: