Shares of Roku Inc. (NASDAQ: ROKU) went up 17.67% after it gains +28.35 during the trading session of Monday. The strong performance of the company has shown the positive sentiments of investors after it has added NBC’s Peacock streaming service to the Roku Platform.
Peacock which was launched by NBC back in July created a hype in the market and has been available to all the platforms except Roku. It has offered a free version where users can access free content alongside paid content which is the main reason for its huge demand.
Roku Inc. has delayed the addition of Peacock on its platform because of its lengthy negotiation with NBC. The companies were in talks regarding the revenue sharing issue. But finally, they signed an agreement and both the companies are positive that this agreement will support the mutual benefits. Peacock will give access to more than 20,000 hours of on-demand movies and shows as well as news and sports programming.
Roku Inc. (NASDAQ: ROKU) share price went from a low point around $58.22 to briefly over $185.44 in the past 52 weeks, though shares have since pulled back to $188.82. Roku Inc’s market cap has remained high, hitting $24.16 billion at the time of writing. If we look at its profitability, it has return on assets, investment, and equity of -9.60%, -8.00%, and -19.40%, respectively. This company has a current ratio of 3.10.
Users can access everything on Peacock as it has offered ‘Peacock Premium’ which is available for $4.99 per month. Viewers may also upgrade Peacock Premium to an ad-free tier for an additional $5.00 per month. The companies have not disclosed the financial considerations yet.
Analysts said that this deal has helped the company to grow further as Roku has added Peacock before its rival which provides its benefits on future deals with the other streamers. Roku is considered to be a popular platform with amazing content. This showed that its bargaining power has also increased with the increase in its popularity. This is the reason the entertainment company has delayed the addition of Peacock to its lineup.