Roku stock rebounds after billionaire Ken Griffin reveals investment
Roku stock rebounded on Friday after RBC recommended the stock as a buy following the investment from billionaire hedge fund manager Ken Griffin’s Citadel Advisors revealing a new 5 percent stake in the streaming service on Thursday.
Griffin, who founded Citadel in 1990 and now serves as CEO, is responsible for managing more than $32 billion in capital from its partner’s investments. The billionaire hedge fund manager has focused much of his attention on the real estate market of late, paying $238 million for a massive New York City apartment earlier this year. Just days prior, Business Insider revealed Griffin had purchased a $122 million mansion in London.
Additionally, Macquarie upgraded Roku’s outlook from "neutral" to "outperform" on Wednesday.
"Roku has built a leading position in the U.S., and we believe its devices will find a ready market abroad," wrote Macquarie analyst Timothy Nollen while predicting that the international market will follow the United States' shift to connected television viewing.
Nollen foresees a Netflix-like growth for Roku over the next three years, and predicts an increase from its current 31 million active accounts to 72 million subscribers by 2022, which would drive platform revenue to $2.3 billion for an overall revenue of $2.7 billion. Roku’s stock is set to triple in value as well, according to Nollen’s prediction.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| ROKU | ROKU INC. | 57.49 | -5.32 | -8.47% |
Year-to-date the stock is up a whopping 279 percent.
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