What Happened With Roku Stock Today?

Roku Inc. ROKU shares moved higher, and Macquarie analyst Tim Nollen raised the price target on the stock from $72 to $90 on Thursday. Here's a look at what to know. 

The Details: The Macquarie analyst noted that the Roku Channel is gaining share with 1.7% of television time, and the company is making moves to monetize its user base of 84 million active accounts.

Nollen pointed to Roku's new self-service Ads Manager tool as a way for smaller advertisers to find audiences on Roku. Ads Manager includes features designed to draw e-commerce merchants like shoppable ads that allow consumers to complete purchases directly using their Roku remote.

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Nollen highlighted Ad Manager's solid CPM pricing strategy which is more shielded from pricing pressures faced by premium streaming platforms, like Netflix and Disney+.

The analyst added recent subscription price increases across streaming services that Roku hosts provide an additional catalyst for revenue growth. Macquarie expects revenue growth of between 14% and 15% in both fiscal year 2024 and 2025. 

According to data from Benzinga Pro, Roku shares have gained more than 15% over the past month and are trading above the stock's 50-day moving average of $65.05. 

ROKU Price Action: According to Benzinga Pro, Roku shares ended Thursday's session 1.71% higher at $75.45. 

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