Streaming-TV company Roku, Inc. (NASDAQ:$ROKU) ended the trading day on Thursday up 54.94%. That’s an impressive day for a company that just recently staged an IPO.
What happened? The stock started to increase in midday trading, just one day after the Los Gatos, California-based company released their first quarterly financial report – and crushed it.
On Wednesday, Roku, Inc. posted results for Q3, which ended September 30. It was headlined by a 40% increase in total revenue. Roku’s sales number, $124.8 million, surpassed expectations by more than 10%. By Wall Street standards, that’s quite the “beat”.
Despite the results, there are still a number of skeptics who question whether the independent startup can keep up with the likes of Apple (NASDAQ:$AAPL), Google (NASDAQ:$GOOGL), and Amazon (NASDAQ:$AMZN). While many view Roku as an attractive acquisition target, CEO Anthony Wood, a tech pioneer, said he plans to stay the course.
We’re with Mr. Woods – the quarterly numbers displayed numerous reasons for optimism. The company posted 16.7 million active accounts, which is up 48% from 2016. It seems we’re not the only ones either as RBC Capital Markets analyst Mark Mahaney just upped his price target from $26 to $28.
Featured Image: twitter
