Roku Likely to Benefit From Advertising Shift to OTT: Wedbush
The accelerating shift of advertisers to digital likely bolsters Roku, Wedbush's Michael Pachter wrote investors Monday. COVID-19 conditions are increasing adoption, creating potential to grow revenue and profits significantly in the long run as incremental Roku device sales along with…
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
“substantial” active user growth likely drive higher ad spend, said the analyst. The accessibility of live sports over over-the-top platforms accelerated cord cutting, a trend seen continuing “in a recessionary environment as streaming has a more favorable and flexible price point than cable.” Despite uncertainty, Roku appears to be on “solid footing for future expansion as ad spend is diverted from TV to OTT and overall ad spend will certainly expand again in a post-recession environment,” Pachter said. The company reports Q3 earnings Thursday.