Shares for streaming device manufacturer, Roku, hit a new record high after showing a 43% rise in share value. This is the result of a licensing deal the company signed allowing it to include its technology in Philips televisions across the United States.
The company announced that it entered a partnership with Funai Electric Co Ltd, which happens to be the manufacturer of Philips N.V Televisions for North America. Roku will install its operating system on all Philips’ smart TVs.
This news was well received by traders and investors, skyrocketing Roku’s shares on Monday to close at $42.71, a 28.5% rise. Over the past three days, stock has increased by 127% in high volumes because of a solid third quarter performance by the company.
Speaking on this development, financial analyst firm S3 Partners said, “The price move was mainly due to shareholders bidding up Roku’s stock price and not due to investors covering their short positions in the stock.”
S3 Partners further commented that the short interest in Roku was on the rise due to its initial public offering in September, but was absolutely flat during the month of November. They don’t expect it to go up any further. This is primarily because of a limited number of shares available to borrow.
Roku is one of the first to manufacture a device that streams content from Netflix onto television sets. It is now giving tough competition to larger entrants like Amazon, Apple, and Alphabet’s Google.
Nonetheless, up until Monday’s end of day, the stock of Roku rose three times in comparison to its $14 price during the IPO on September 27. The stock made its debut in Nasdaq on September 28 at the price of $15.78.