$ROKU Stock Surges On Deal With Google YouTube

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ROKU stock moved higher on December 8, 2021, after the news broke that ROKU and Google worked a deal in the 11th hour. Dang, that was a nail-biter with ROKU set to make YouTube no longer available on its streaming devices on December 9, 2021.

Roku deal should allow fees on new YouTube TV originations, says Stephens

After it was reported that Roku (ROKU) and Google (GOOGL) have reached a multiyear distribution agreement for both YouTube and YouTube TV apps to make them accessible on the Roku operating system, Stephens analyst Nicholas Zangler said “details are scarce,” but he thinks the agreement should permit Roku to once again collect origination fees on new YouTube TV originations. The analyst, who also contends that YouTube app accessibility will deter customers from choosing an alternative TV/OS at the point of purchase, keeps an Overweight rating and $475 price target on Roku shares.

Roku tells Bloomberg multiyear extension signed for YouTube

Roku (ROKU) and Alphabet’s (GOOGL) Google have agreed to a multiyear contract extension that keeps YouTube and YouTube TV on the Roku platform, the company told Bloomberg. “This agreement represents a positive development for our shared customers, making both YouTube and YouTube TV available for all streamers on the Roku platform,” the company said in a statement issued to Bloomberg.

Roku Opens Amsterdam Office to Support International Growth

On December 7, 2021, Roku announced that it is establishing and investing in an office in the city of Amsterdam. Roku plans to expand its existing presence in The Netherlands to help support its international growth. The Amsterdam office will be located on Weteringschans and offers space for up to 150 employees. Roku is headquartered in Silicon Valley in the United States, in Europe it currently has offices in Denmark, Ukraine and the United Kingdom.

“TV streaming is a global phenomenon, and international growth is a key focus area for us,” said Arthur van Rest, VP International at Roku. “Attracting the right people is crucial to our success, and we believe that The Netherlands has great talent and expertise. We will be looking to hire across various functions, from marketing and business development to finance and legal.”

“Amsterdam is solidifying its position as a leading European hub for media and tech companies. Our good physical and digital infrastructure helps businesses grow their international presence quickly. An innovative company like Roku is a strong addition to our vibrant tech and start-up scene. It will also create a lot of opportunities for our diverse talent pool,” said Amsterdam Deputy Mayor Victor Everhardt.

Roku launched its first streaming player in 2008 that enabled consumers to stream Netflix to their TV. The company also has the only operating system that was purpose-built for TV, Roku OS, which it licenses to more than 15 TV manufacturers to build easy to use and affordable smart TVs. On the Roku platform, consumers can stream thousands of free and paid streaming channels. Roku works with these streaming channels to help them build, engage, and retain audiences and drive monetization of their content.

International expansion is a key priority for Roku. In September of this year, Roku launched its streaming players in Germany, followed by a comprehensive marketing campaign to introduce the Roku brand to consumers. Roku streaming players are currently available in the UK, Germany and France. Roku also works with TV manufacturers, including TCL and Hisense in the UK, for the production of Roku TV models. Roku is the leading TV streaming platform in the U.S., by hours streamed (April 2021, Hypothesis Group). The Roku platform is currently available in 20+ countries around the world, and it had 56.4 million active accounts as of September 30, 2021.

Bullish Option Flow Detected In ROKU Stock

Roku Option Flow

Make sure to review this lesson on option flow so that you understand the image above.

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ROKU Stock Technical Analysis

Roku Stock

Both the long and short term trends are negative. It is better to avoid buying stocks with negative trends. ROKU is part of the Entertainment industry. There are 82 other stocks in this industry, of which 66% are performing better than ROKU. The technical rating of ROKU is bad and it also does not present a quality setup at the moment. Prices have been extended to the upside lately. For a nice entry it is better to wait for a consolidation. Click here to sign up for email alerts on when ROKU stock is a good entry.

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