Roku Stock Buzzing on Netflix Acquisition Rumors

There's a lot of positive sentiment surrounding ROKU at the moment

Deputy Editor
Jun 8, 2022 at 9:09 AM
facebook X logo linkedin


Streaming stalwart Roku Inc (NASDAQ:ROKU) was last seen 7.5% higher in electronic trading, after Business Insider reported that the company is in talks to be acquired by streaming giant Netflix (NFLX). Though details concerning the acquisition are scarce, the report did indicate that Roku has "abruptly closed the trading window for all employees," so they can no longer sell their vested stock.

ROKU has suffered a tough 12 months. Coming into today, the stock sported a 72.6% year-over-year deficit, with its descending 40-day moving average guiding it lower since October. Should these premarket gains pain out, that trendline will be tested throughout today's trading.

Despite the stock's dismal technical setup, 14 of the 20 brokerages rate ROKU a "buy" or better, while the consensus 12-month price target is a 69% premium to last night's closing perch. Should some sort of deal eventually happen, don't be surprised if analysts rush to adjust their stance, which could pressure the stock even lower.

There's been a penchant for bullish bets in the options pits of late. ROKU's Schaeffer's put/call open interest ratio (SOIR) sits higher than just 2% of readings from the past year, indicating a severe call-bias amongst short-term options traders. Those options traders are in luck, as Roku stock has exceeded volatility expectations in the past 12 months, per its Schaeffer's Volatility Scorecard (SVS) of 88 out of 100.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI