Shares of Roku (ROKU 11.01%), a video-streaming platform company, jumped today as investors continue their positive sentiment toward the stock following the company’s strong first-quarter financial results that were released late last week.
The tech stock was up by as much as 9.8% today and had gained 6.4% as of 2:18 p.m. ET.
Some investors have become optimistic about Roku stock again after the company beat Wall Street’s consensus revenue estimate for the first quarter. The company’s sales of $734 million, an increase of 28% year over year, beat analysts’ consensus estimate of $718 million.
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Roku’s management also reiterated its guidance of 35% revenue growth for 2022, which encouraged investors to start coming back to the tech stock last week.
That sentiment appears to have extended into today’s trading, with investors flocking back to Roku and driving up its share price by nearly 18% over the past several days of trading.
Investors may also be excited to see the company announce today that the Apple Music app is now available on Roku’s platform. The app will allow Apple Music subscribers to stream music from Roku’s platform and new users can sign up for Apple Music through the Roku channel store.
Technology investors — and Roku investors in particular — have been looking for any sign of positive news that they can get. Tech stocks have slumped significantly over the past year and Roku is no exception — its share price is down 71% over the past 12 months.
With first-quarter revenue coming in ahead of Wall Street’s expectations and the company reiterating its full-year guidance it’s not surprising that investors are extending last week’s Roku stock rally into this week.
Having said that, the market is still processing a lot of news right now, including rising inflation and a likely rate hike by the Federal Reserve this week. That means Roku investors aren’t likely done with their roller-coaster ride just yet.Previous