By
Bhushan Akolkar
April 12th, 2024
As Netflix and Roku reported a good revenue performance in the first half of 2020, Wall Street analysts and investors expect the shares from both of them to continue with the uptrend.
As expected from video streaming companies including Netflix Inc (NASDAQ: NFLX) and Roku Inc (NASDAQ: ROKU) during the pandemic, their shares are largely benefiting from the ongoing coronavirus crisis that has put most people around the world at home.
Netflix stock added around 11.61% on Wednesday to close the day trading at $547. On the other hand, Roku stock jumped 11.17% during the day to close the day trading at $164.21.
Analysts Call on Roku and Netflix Shares
The sudden rise is largely attributed to positive ratings given to the respective company shares by different trustworthy analysts.
First of all, let us mention that Citi analyst Jason Bazinet started coverage of Roku with a $180 price target, compared with Wednesday’s price of about $164.
With a strong buy call, the shares were poised to jump at a considerably high rate. In his research note that was published late on Tuesday, Bazinet noted that the strong subscriber growth and increased value per subscriber is a key factor in the growth of Roku share value and also Netflix that is directly related to the company.
Additionally, another analyst from Piper Sandler Yung Kim published a survey that found most United States Netflix subscribers were willing to accept a price increase.
According to Kim’s survey, more subscribers planned to keep Netflix than other video streaming services after the COVID-19 crisis subsides.
However, he went ahead to give Netflix “overweight,” with a $534 price target, below Wednesday’s price of around $545.
Way Forward
In the after-hours trading session, Netflix shares were down 0.92% to trade around $542.50, while Roku shares were down around 0.65% to trade around $163.21. At the time of writing in the pre-market, NFLX stock is down 1.01%, at $542. ROKU stock is down 0.35%, at $163.71.
Checking their history performance, Netflix shares are up 84.49% in the past one year, added around 69.22% YTD, up around 32.43% in the past three months, up 12.71% in the past one month, and up 9.97% in the past five days as of the time of publication according to Marketwatch metrics.
On the other hand, Roku shares have added around 9.61% in the past one year, 22.69% YTD, added 50.44% in the past three months, up around 9.27% in the last one month, and managed to climb 10.34% in the last five days.
As the companies reported a good revenue performance in the first half of 2020, Wall Street analysts and investors anticipate the shares from both of them to continue with the uptrend if the conditions on the ground prevail for the better part of the remaining months to close the year.
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