Roku Inc. (NASDAQ: ROKU) and its subsidiaries operate as a TV streaming platform. The operations span from platform to devices. The ROKU stocks jumped by 11% last week due to the release of quarter four earnings. The earnings report that was released for the period ending in December 2022, beat the estimates, as the earnings were ($1.70), better than the consensus of ($1.72) and the revenue came out to be $867.1 million, compared to the estimate of $802.12 million.
Roku Inc.’s plan for 2024 includes cost cutting via slicing the advertisement expenditure. It also cut 200 jobs or about 7% of its workforce in November 2022. Meanwhile, Cathie Woods, founder and CEO of Ark Invest dropped shares of Roku last week. Although this did not impact the share prices drastically, as many other revelations came across to turn the stock bullish.
Roku shares gained after BofA Securities upgraded the company’s remark. The remark shifted from underperforming to worth buying. BofA also observed that the company is increasing its market share in smart TVs and can possibly benefit from the launch of Roku-branded TVs, resulting in higher subscriber growth.
Furthermore, Roku partners with Best Buy on first ever SXSW activation to bring fan-favorite “Roku City” screensaver to life. The alliance may be a publicity stunt, planned allegedly to bring hype to the Roku-branded TVs on their launch.
The ROKU stock prices are moving in a bullish momentum, which it gained due to several positive occurrences. Although recently, it lost 2.98% in the intraday session. The volume also saw a fall after the sudden rise. The EMA ribbon forms a possibility of a bullish cross (green circle). The ROKU stock prices can take support at $62.35 and if successful, can aim for a price level near $86.90.
The RSI oscillates in the buyers’ region to mirror the same, and can reach for the overbought zone, once bulls take over completely. The MACD does not form any distinct cross but does show active buyer interaction to signal approaching bulls.
Conclusion
The ROKU stock is awaiting stronger bullish momentum with an aim to reach beyond $85. The current testing of support at $62.35 will determine whether bullish momentum can be established or not. The holders can rely on the support levels.
Technical levels
Support levels: $62.35 and $54.40
Resistance levels: $73.50 and $84.70
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/02/24/roku-inc-nasdaq-roku-stock-price-reacting-to-only-happy-news/