Markets

Roku Stock Hits New All-Time High on Bullish Analyst Note

Roku (NASDAQ: ROKU) soared to a new all-time high on Friday in the wake of a missive by Deutsche Bank analyst Jeffrey Rand. At one point, the stock traded above $177 per share before giving back some of its gains.

Rand reported the results of a survey of 1,048 U.S. consumers, conducted by Deutsche Bank's Data Innovation Group, which found that Roku maintained its lead in the connected TV market over its largest competitor and chief rival, Amazon's (NASDAQ: AMZN) Fire TV. The survey showed that 43% of respondents that reported owning a connected TV said they had a Roku device, while 35% had a Fire TV. Apple (NASDAQ: AAPL) trailed both with 27%. Rand noted that some who participated in the survey had more than one device, with some having all three.

A wall-mounted television showing The Roku Channel home screen.

Image source: Roku.

One of the more interesting takeaways from the survey was the widespread adoption of Roku products across income levels, with between 40% and 50% among each income group owning a device. Another not-so-surprising conclusion was that Apple TV was more prevalent among those with higher incomes, and "had significantly higher ownership levels in the $100,000 and up income level and tied with Roku for the most ownership in this income level."

The survey also showed that Roku had the highest satisfaction rate when it came to quality, with 54% of respondents rating their Roku device as six or higher out of a possible score of 10. This outpaced Amazon Fire TV, with 53%, and Apple TV at 38%.

The survey found that ownership of connected TV devices was consistent across all age groups, with about a mid-30% adoption rate. As the market leader, Roku still has plenty of opportunity for growth, since more than two-thirds of consumers have yet to purchase an internet-connected TV.

On Wednesday, a bullish note from Citigroup analyst Jason Bazinet sent the stock up 11%.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Danny Vena owns shares of Amazon, Apple, and Roku. The Motley Fool owns shares of and recommends Amazon, Apple, and Roku and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. The Motley Fool has a disclosure policy.

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