ROKU - Why did Roku stock rise today? Streaking amid some streaming catalysts

2023-06-07 17:10:16 ET

Roku ( NASDAQ: ROKU ) rose 8% Wednesday -- putting the button on a streak of gains that's now run to eight trading sessions.

The 8% increase was the stock's biggest of the span, which has run a winning streak since shares reversed a decline on May 25 and finished higher May 26, nearly two weeks ago.

The increase was the biggest one-day gain for Roku ( ROKU ) since Feb. 16, and the eight-session streak is its longest run up since January. All told, the stock is up 25% since May 25.

Why might it have gained? Roku wasn't alone among peers in marking significant gains Wednesday. Following news that Amazon.com ( AMZN ) was considering an ad-supported tier for Prime Video -- and talking with Warner Bros. Discovery and Paramount Global about adding ad tiers of Max and Paramount+ to Prime Channels -- WBD rose 8.4% and Paramount ( PARA ) picked up 3.9% . AMC Networks ( AMCX ), which operates its own smaller streaming service based on its cable network, rose 9.5% Wednesday.

That points to a firming up of the ad-supported streaming ecosystem on which Roku is dependent.

And those peer stocks have also made gains during Roku's eight-session win streak: Since it started, Warner Bros. Discovery ( WBD ) is also up 18% ; Paramount ( PARA ) up 16.5% ; and Netflix ( NFLX ) up 11.4% , vs. gains for the broader market of about 3% over that span.

Long-term Roku investors, though, might still be waiting for even more recovery: It's still 27% lower than its 52-week high, and 86% off its early 2021 peak.

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