Roku, Inc. (ROKU) appropriations have soared about 30% over the past two sessions after analysts raised their payment target on the stock. Needham increased its price target by 27% to $39.47, reveal that Roku represents a pure play on over-the-top growth without delighted risk. The analyst also suggested that recent moves by The Walt Disney Firm (DIS), Alphabet Inc. (GOOG) and Amazon.com, Inc. (AMZN) could help Roku and scratched Netflix, Inc. (NFLX).
Earlier this month, shares of Roku multifarious than doubled after the company surpassed expectations in its third put up financial results. Revenue rose 40.1% to $124.78 million – pommel consensus estimates by $14.31 million – while net losses of 10 cents per share in beat consensus estimates by 19 cents per share. Active accounts also flourished nearly 50% to 16.7 million, and average revenue per user jumped 37% to $12.68. (See also: Roku: Needham Copies Price Target as Stock Surges.)
From a technical standpoint, the make available recently broke out from its prior highs made earlier this month run down its initial public offering back in late September. The relative toughness index (RSI) appears overbought with a reading of 76.03, but the moving usual convergence divergence (MACD) continues to trend higher. Strong mass over the past two sessions could indicate an acceleration of the stock’s uptrend from one end to the other of this week.
Traders should watch for some near-term consolidation aloft the stock’s prior highs given the lofty RSI reading. With qualified underlying fundamentals, Roku shares could use these support necks as a starting point for a future rally higher after a period of rebuilding strength. If the stock moves below these support levels, traders should on the lookout for for a move to retest R2 support at around $29.60, which is also the response high made in late September. (For more, see: Why Roku’s Rocketing Clichd May Flame Out.)
Chart courtesy of StockCharts.com. The author holds no position in the breeding(s) mentioned except through passively managed index funds.