Roku’s fourth-quarter revenue forecast is giving the shares quite a boost today
The shares of Roku Inc (NASDAQ:ROKU) are headed for their best day since the company’s July 28 report, up 24.3% at $74.35 at last check, after the streaming name’s strong third-quarter revenue and upbeat fourth-quarter forecast. CEO Anthony Wood and CFO Dan Jedda said in a letter to shareholders that they “had a solid rebound in video ads in Q3 and we expect the year-over-year growth rate of video ads in Q4 to be similar.”
Today’s pop has Roku stock completely recovering its 15.6% October deficit, and then some. The shares have toppled above several short-term moving averages as well, including its 20- and 50-day trendlines. Since the start of the year, the equity is up roughly 85%.
Three analysts chimed in with price-target hikes after the event, though Oppenheimer lowered its target to $100 from $110. More could be on the way, considering of the 35 analysts in coverage, 11 carry a “buy” or better rating, with 22 a “hold,” and two a “sell” or worse.
In the options pits, 88,000 calls and 41,000 puts have been exchanged so far, which is already 2.7 times ROKU’s average daily options volume. The weekly 11/3 75-strike call is the most popular, with new positions opening there.
ROKU calls have been popular amongst options traders beyond today as well, per the stock’s 50-day call/put volume ratio of 2.01 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio ranks higher than 94% of readings from the past year, showing calls being picked up at a much faster-than-usual clip in the last 10 weeks.