Stocks in Roku (ROKU) rose Monday when investors decided to
(AAPL) streaming video announcement was good news for the stock. On Tuesday, most of it returned.
It was probably mainly due to a note from Citi Research analyst Mark May, who followed Monday's Apple TV + message with a note calling it "a weak incremental negative for Roku."
Roku stocks, up 4.7% Monday, were recently down 4.5% to $ 63.92.
Monday's shock was helped by the confirmation that Apple's new advertising-free streaming app, due to the fall, with prices to be announced, will eventually be available on the Roku platform.
For the company, mainly a content aggregate, the availability of multiple services in general could make Roku (or Roku-powered) devices more convincing to consumers.
"The Apple TV app will be available on Roku devices, which will keep it competitive in the market from a content selection perspective," wrote May, who has a neutral rating and a price of $ 53, under FactSets $ 67 average on the stock .
While Roku platform includes
(NFLX), it provides no direct revenue from the company's service. The new Apple TV offer may be the same, according to May. A Roku spokesman refused to detail details of the company's relationship with Apple.
"Given that the Apple TV app is free and provided popular apps from well-established companies (such as Netflix,
Can also wonder If consumers use Roku devices to access Apple's service, it may cut back on time they would otherwise spend on platform-generating revenue, by viewing ads or purchasing premium content from other vendors.
Shares of Roku are over 100% in 2019.