Is It Time to Believe in Roku Stock Again?
Roku moves higher after a breakthrough deal with Amazon. Things could just be getting started.
Shares of Roku (NASDAQ: ROKU) are an early winner this week. Shares of the streaming TV pioneer were trading as much as 13% higher on Monday after joining forces with Amazon (NASDAQ: AMZN) to announce a new connected TV integration. Amazon DSP -- its programmatic demand-side ad-buying platform -- will allow the online giant's customers access to the largest connected TV footprint in the country.
Roku reaches roughly 80 million U.S. households, making up more than 80% of the country's total connected TV homes. Early tests of the integration are promising for all parties. The announcement points out that Amazon DSP advertisers using the new solution reached 40% more unique viewers with the same budget, while lowering the instances of the same person seeing the same video ad by almost 30%. Amazon connected TV advertisers are now benefiting from three times more value from their ad spend through this exclusive partnership.
Advertisers win by reaching a larger audience. Consumers win by seeing fewer repeat ads. Amazon and Roku win by taking a step up in the connected TV food chain. Is this the first of many catalysts that can make Roku a market darling again?
