Why This Video Streaming Stock In Cathie Wood's Portfolio Is Up About 10% Today

Shares of Roku, Inc. ROKU rallied sharply in premarket trading on Friday.

The streaming equipment maker reported second-quarter results that exceeded forecast, with revenue coming in at $847 million compared to the consensus estimate of $773.43 million.

The company's loss unexpectedly narrowed from $0.82 per share a year ago to $0.76 a share in the second quarter. Analysts, on average, modeled a loss of $1.27 per share for the quarter.

Commenting on the results, KeyBanc Capital Markets analyst Justin Patterson said platform revenue benefited from improved spend in the consumer packaging goods and health as well as wellness verticals. The company also continued to gain share against linear TV, he added.

Roku guided third-quarter revenue to $815 million and adjusted EBITDA to a negative $50 million. The Street estimates revenue of  $809.97 million for the quarter.

Roku is the third biggest holding in Ark Invest's flagship Ark Innovation ETF ARKK, with a 7.18% weighting.

Patterson has a Sector Weight rating on Roku.

In premarket trading on Friday, Roku jumped 9.97% to $74.99, according to data from Benzinga Pro.

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