Roku Stock Thriving Ahead of Earnings

In the first portion of the year, it seemed Wall Street hated Roku (ROKU) . I sat with egg on my face jumping into shares when they broke below $40 after February earnings disappointed. The stock cascaded lower eventually dipping below $30 for a few hours at the start of April.

Fast forward less than six months and suddenly analysts love the company... when the stock is trading at twice the levels. In the last week alone, Citi raised its price target to $72, Guggenheim started Roku at a "Buy", and KeyBanc raised its target to $81. While I agree there is a plenty of streaming room for Roku, Netflix (NFLX) , and Amazon (AMZN) , I do have some concerns with Roku's price-to-sales pushing higher than Netflix....225 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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