EARN25

Roku Lands Double Upgrade After Earnings

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

Deputy Editor
Feb 17, 2023 at 9:04 AM
facebook X logo linkedin


Shares of Roku Inc (NASDAQ:ROKU) boast a 2.5% premarket lead, after a double upgrade from Bank of America.

The broker upgraded the streaming stalwart to "buy" from "underperform," saying the company is poised to improve revenue and margin. The double upgrade also followed Roku's better-than-expected quarterly report.

On the charts, ROKU yesterday closed at its highest level since September. What's more, the equity managed to close above its 200-day moving average for the first time since August 2021. Year-to-date, Roku stock is 73.4% higher. 

Coming into today, 14 of the 23 brokerages rated the security a "hold" or worse, leaving ample room for an unwinding of pessimism amongst the brokerage bunch. Meanwhile, the 10.72 million shares sold short represent 8.8% of the stock's available float.

A shift in the options pits could provide additional tailwinds. There's been a penchant for bearish bets in the options pits of late, per ROKU's Schaeffer's put/call open interest ratio (SOIR) of 1.14 that sits higher than 80% of readings from the past year -- indicating a put-bias amongst short-term options traders.

 

You Don’t Need 25 Alerts -- You Need ONE You Can Trust!

That’s the idea behind Trade of the Week, Schaeffer’s newest trade alert.

Every Monday morning before the opening bell, you’ll receive a single, expertly researched trade recommendation -- built from the same proprietary research we’ve been using for over four decades.

It’s not just a signal.

It’s a plan designed for traders who are tired of jumping from alert to alert without ever finding their edge.

No juggling alerts. No switching directions mid-week. Just one clear, expertly researched trade idea -- delivered before the market even opens.

👉 JOIN RIGHT NOW FOR JUST $1 TO GET THE NEXT TRADE!