ROKU Gets An Upgrade

Trade war? What trade war?  According the the overall markets torrid 3-day advance, it’s not happening.  Of course, that could change in a heartbeat with one comment from either China or the US.  Since the market isn’t concerned with it, neither am I (for now).

Let’s move on to $ROKU.  Last week Roku was upgraded by an analyst at Oppenheimer.  Although this is always welcome news when long the stock, nobody knows when it’s going to happen.  Based on the chart below, I recommended a long position below $43.00 per share, with support just above $40.00.  It found support exactly in that range, and then the analyst’s upgrade added to the bid.

The analyst that made the call had been bearish on the stock, but then changed his mind due to The $Roku Channel.  This is available to its users and offers free movies, which should increase usage, but most importantly it generates ad-revenue.  What’s more, it is not a third-party app so Roku gets to keep 100% of the new revenue.

The Oppenheimer analyst has a price target of $50.00 per share, while I have a slightly better target of $52.00 per share.