Television streaming platform Roku Inc. (NASDAQ: ROKU) and the world’s largest retailer, Walmart Inc. (WMT), have inked a partnership deal “to make TV streaming the next e-commerce shopping destination.” The financial details were kept under wraps.
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Through this partnership, both companies will combine entertainment and commerce under a single platform, which is anticipated to become widely used in the future.
Following the deal announcement, shares of Roku rose 4.42% in the extended trading session on Thursday.
Terms of the Deal
As per the terms of the partnership, viewers will be able to buy goods remotely while watching television. According to the companies, customers may place orders on the Walmart checkout page, which will be confirmed by an e-mail containing details about shipping, returns, and customer service.
Additionally, the payment will be made through Roku Pay, Roku’s payments platform.
Interestingly, marketers will be allowed to design content for TV streaming and shopping using Roku Brand Studio.
Official Comments
Walmart CMO William White said, “We’re working to connect with customers where they are already spending time, shortening the distance from discovery and inspiration to purchase…By working with Roku, we’re the first to market retailer to bring customers a new shoppable experience and seamless checkout on the largest screen in their homes – their TV.”
On the futuristic plan, Peter Hamilton, the head of TV Commerce at Roku, commented, “For years, streamers have purchased new Roku devices and signed up for millions of subscriptions with their Roku remote. Streaming commerce brings that same ease and convenience to marketers and shoppers.”
Analysts’ Recommendation
Recently, Wolfe Research analyst Peter Supino maintained a Hold rating on Roku but reduced the price target to $90 (14.53% upside potential) from $101.
The rest of the Street is cautiously optimistic about the stock, with a Moderate Buy consensus rating based on 17 Buys, five Holds, and one Sell. The average Roku price target of $152.26 implies 93.77% upside potential. Shares have lost 77.7% over the past year.
Hedge Funds
TipRanks’ Hedge Fund Trading Activity tool shows that confidence in Roku is currently Very Positive, as the cumulative change in holdings across all 10 hedge funds that were active in the last quarter was an increase of 2.3 million shares.
Also, TipRanks’ Stock Investors tool shows that investors currently have a Positive stance on Roku, with 1.1% of investors maintaining portfolios on TipRanks and increasing their exposure to ROKU stock over the past 30 days.
Concluding Remarks
To remain competitive in the market, services and product offerings must be innovative. With Walmart and Roku’s partnership, shoppers will have access to a cutting-edge shopping experience in addition to entertainment.
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