Just a few days ago, we heard about Roku (ROKU) bringing back the NFL Zone, an experience that will certainly endear it to at least some sports fans out there. But beyond that, Roku has other plans to make the sports streaming experience easier to work with. And that sent shares of Roku blasting up nearly 6.5% in the closing minutes of Wednesday’s trading session.
One of the biggest changes some might have seen already is the Sunday morning Major League Baseball (MLB) games for The Roku Channel. This is the first time that Roku has ever produced its own MLB games, and these may ultimately be a starting point for something even bigger.
Reports note that Roku wants to put together a complete sports hub for viewers, including sports that Roku doesn’t hold the rights to, by routing subscribers to other platforms with the rights. And with device revenue on the rise for Roku—up 39% with the latest earnings report—being able to connect to content, even content not on Roku’s platforms, should prove helpful for Roku overall.
A New Rival? Not So Fast…
A previous report from Lowpass suggested that Roku may have a coming rival in the smart TV operating market, as advertising giant The Trade Desk (TTD) was getting a system of its own together. However, word from Jeff Green, The Trade Desk’s CEO, says that that is not part of the plan at all.
On a certain level, this might have made sense. After all, The Trade Desk is well-known as an advertising facilitator, so why not control a platform that is tailor-made for advertisers? But that is not part of Jeff Green’s plans at all, noting that he—and, by extension, The Trade Desk—plans to remain a partner as opposed to a competitor.
Is Roku a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on ROKU stock based on eight Buys, eight Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 13% decline in its share price over the past year, the average ROKU price target of $74.67 per share implies 6.5% upside potential.
