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.
“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.