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Shares In Telstra Streaming Partner Rocket, Netflix Buy Tipped

Telstra, streaming gear partner Roku, is believed to be close to cutting a deal with Netflix.

Just before the US market took off for a Memorial Day weekend the stock took off in New York when the rumour of a tie up with Netflix hit the market. Roku make the Telstra TV box.

Roku shares rose 7 percent Friday, closing at $38.54, back in September they were trading at $14.

“What a difference six months makes,” Andrew Left of Citron Research said in a recent report on the streaming player maker.

“The move to cutting the cord and [over-the-top] advertising is real and it is a mega-trend that Citron not only does not want to be short, but at this valuation I want to be long,” he added.

Left criticized the stock in late November when the stock was trading at $46.63, — up substantially from its September initial public offering price of $14. He predicted the stock would soon tumble to $28 — which it almost did as it hit a low of $30.29 in April.

But now with Roku trading cheaper relative to peers such as Netflix, Left sees a buying opportunity.

And that’s not the only opportunity that Left sees.

Netflix could in fact be a potential buyer, given pre-existing relationships between senior management at both companies and the ad revenue Roku could provide Netflix, Left said.

Roku declined to comment.

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