Photograph by Stephen Lam / Getty Images
Text size
Stocks in Roku (ROKU) rose Monday when investors decided to
apple
s
(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
Netflix
(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,
Amazon
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.
Email David Marino-Nachison at david.marino-nachison@barrons.com Follow him on @marinonachison and follow Barron's Next on @barronsnext .
