Stock of the day for pre-market prep: Roku
Benzinga’s PreMarket Prep airs every morning from 8 a.m. to 9 a.m. ET. During this fast-paced and highly informative hour, traders and investors tune in to get the top news for the day, the catalysts behind these moves, and the corresponding price action for the upcoming session.
Each day, the show will cover at least 20 stocks determined by co-hosts Joel Elconin and Dennis Dick as well as producer Spencer Israel.
It’s always worth following the price before the news feed to see if there is a correlation. On many occasions, the price action precedes the news feed. This is precisely the case with Roku Inc. (NASDAQ: ROKU).
Roku Win Streak: After days of consecutive defeats on June 15 and 16, Roku embarked on a very impressive rally. In fact, it turns out to be the longest winning streak since January 12. During that time, Roku went from $ 335.18 to $ 415.49 on closing for a gain of 24%.
Starting at 2:30 p.m. ET. Today, Roku is in the middle of a seven-day winning streak and has recovered from his near June 16 ($ 336.87) to $ 431.98 earlier in the session, but s ‘is folded down at the bottom handle for $ 420. This marks a better comeback than during his race in January.
Relevant news: At the start of the rally, there was no news to explain until noon on the third day of the rally on June 18. Ahead of the opening, the company reported that during the period from May 20 to June 3, the company reported a record number of unique accounts being broadcast on the Roku Channel.
Then, combined with explosive price action in the high price / earnings growth technology sector, it certainly justifies the gains of $ 352.30 to $ 368.43 during the June 18 session. It should be noted that during the market rout last Friday, Roku was firmly in the green.
Crickets: Once again, in sympathy with the strong rally in the broader market, Roku rose from $ 348.43 to $ 402.50 on Monday. He wired almost $ 20 more on Tuesday, from $ 382.73 to $ 403.50.
On Wednesday, the problem did something it hasn’t done for long enough. With no news, it widened and the opening impression ($ 306.50) was the session low. After the opening, the issue increased without significant setback.
Wait, there is news: Just before 3 p.m. Wednesday, with the issue much higher for the session, it increased following a remote mention in a Wall Street Journal report that Comcast (NASDAQ: CMCSA) May Consider Bid For Streaming Platform
Despite the huge premium Comcast is expected to pay for the company compared to a few months ago and all the regulatory hurdles it would have to overcome, traders have followed the rumor.
Comcast immediately responded with a statement from its CEO stating that the company “doesn’t feel the need to seek a merger in the streaming space,” but has considered options, including a merger with ViacomCBS (NASDAQ: VIAC) or acquisition of Roku.
Certainly, the latter part of the statement is responsible for the continued strength of the issue on Thursday and so far for the action on Friday.
See also: Why a Comcast or Roku buyout is unlikely
Price action: For the first time in the current winning streak, Roku has the chance to achieve a pair of highs in the same area.
After peaking at $ 431.78 on Thursday, $ 431.98 is the session high and has now retreated into the middle grip of $ 420. Whether or not this is another opportunity to buy shares before Comcast’s repurchase, or the start of profit taking after its massive rally, will be determined in the not-so-distant future.