Roku Inc (ROKU)

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Roku Will Take Lion's Share Of Streaming TV Market, According To Cathie Wood
by
Chris Katje
March 3, 2021 3:11 pm
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Roku Will Take Lion's Share Of Streaming TV Market, According To Cathie Wood
Ark Investment Management Founder and CEO Cathie Wood joined Benzinga's "Raz Report" for an exclusive interview Wednesday. She shared her thoughts on several stocks, including Roku Inc (NASDAQ:ROKU).

Wood on Roku: Wood sees a huge transition from linear television to streaming television. When asked where the $70 billion in annual advertising for linear television will go, the answer from Wood is the streaming leaders.

“The surprise is Roku,” Wood said, noting that most people point to Facebook Inc (NASDAQ:FB) and Amazon.com (NASDAQ:AMZN) being possible winners in the shift. “Roku is becoming the operating system of streaming TV.”

Roku started its own channel and recently acquired Quibi to add more of its own original content. This could lead to additional advertising revenue.

Wood thinks Roku and Amazon are going to “take the lion’s share of the market.”

Related Link: Is Roku Pushing Into Original Content?

Why It’s Important: Roku is the third-largest holding in the Ark Innovation ETF (NYSE:ARKK). The stock represents 5.3% of the Ark flagship ETF’s assets. The stock trails only Square Inc (NYSE:SQ) and Tesla (NASDAQ:TSLA), which rank second and first for the fund’s assets.

Roku is also a top 10 holding in the Ark Next Generation Internet ETF (NYSE:ARKW).

ROKU Price Action: Roku shares are down 4% $373.17 at publication time.