Roku shares are rallying after the company reported its first-quarter earnings with stronger than expected results.
Roku's revenue increased 79% to $574.2 million, well above analysts predictions of $490.6 million.
The company posted a net income of $0.54 per share or $76.3 million compared to a loss of $54.7 million during the same period in 2020. Analysts had expected the company to report a loss during the period.
Roku added 2.4 million incremental active accounts in Q1 2021 to reach 53.6 million while streaming hours increased by 1.4 billion to 18.3 billion.
Looking ahead, the company expects to report revenue of $610-$620 million, again above analyst expectations.
On Friday morning, Roku's price target was raised to $300 from $275 at Morgan Stanley, while Evercore ISI analyst Shweta Khajuria raised the firm's price target on Roku to $430 from $400, keeping an Outperform rating.
Khajuria noted that while active accounts grew at a healthy rate, it was modestly below the Street consensus forecast.
Roku shares are currently trading 15.32% above Thursday's close at $327.71.
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