What Happened?
Shares of streaming TV platform Roku (NASDAQ: ROKU) jumped 3.6% in the morning session after Guggenheim maintained its Buy rating on the company but increased its price target to $115 from $110.
The investment firm highlighted Roku's “core CTV building blocks and incremental revenue drivers into 2026” as factors expected to contribute to growth that could exceed expectations and boost investor confidence. Following this view, Guggenheim also raised its revenue, gross profit, and adjusted profit projections for the company for the fourth quarter of 2025 and for the 2026 fiscal year.
After the initial pop the shares cooled down to $111.30, up 3.4% from previous close.
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What Is The Market Telling Us
Roku’s shares are very volatile and have had 26 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 15 days ago when the stock dropped 4.6% on the news that reports surfaced that Cathie Wood's ARK Invest sold a significant portion of its holdings in the company for the second consecutive day.
The investment firm's daily trade report showed that it sold 181,303 shares of the streaming-device maker through its ARK Innovation ETF. This sale was valued at approximately $17.5 million. This action followed a smaller sale on the previous trading day, marking a continued reduction of ARK's stake in Roku. Such a move by a prominent investor often signals a shift in sentiment, which can lead other investors to sell their shares as well, putting downward pressure on the stock price.
Roku is up 49.4% since the beginning of the year, and at $111.30 per share, has set a new 52-week high. Investors who bought $1,000 worth of Roku’s shares 5 years ago would now be looking at an investment worth $326.68.
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