Roku Inc's stock (ROKU) surged 5.10% during intraday trading on Friday, reflecting strong investor confidence amid market developments.
The rally follows news of Netflix's $83 billion deal to acquire Warner Bros. Discovery's studio and streaming business. Analysts suggest the deal could lead to increased advertising spending on Roku's platform, as a financially healthier studio may allocate more resources to digital advertising. Additionally, concerns about the potential shutdown of HBO Max, a platform hosted on Roku, were alleviated, further supporting the stock's upward movement.
"We do not anticipate any winner shutting down HBO Max in the near term, opting instead for a secondary service with bundling options," noted Wedbush analysts. They added that the deal could ultimately benefit Roku's advertising revenue.
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