Television streaming platform Roku (NASDAQ:ROKU) recently joined hands with FreeWheel, an ad-tech unit of Comcast (CMCSA). The companies aim to boost the capabilities and effectiveness of publishers in optimizing their advertising revenue.
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Under the terms of the agreement, Roku has made its demand application programming interface (dAPI) accessible to FreeWheel’s customers. This integration enables publishers to gain direct, automatic, and real-time insights into advertiser demand and make informed decisions. Further, Roku’s dAPI allows FreeWheel to streamline its ad operation workflows and improve overall efficiency in managing advertising campaigns.
In addition, publishers will have the opportunity to utilize Roku platform signals to aid advertisers in targeting specific audiences and assessing the performance of their campaigns. To leverage additional data sets, both companies will employ clean-room technology.
Furthermore, FreeWheel will utilize Roku’s Watermark solution to control fraud within TV streaming, in partnership with cybersecurity company HUMAN Security. By incorporating this technology, the collaboration aims to prevent device and app spoofing, enhancing the integrity and security of TV streaming advertising.
Recent Developments
Interestingly, Roku is focused on improving various aspects of its operations to drive growth opportunities.
On July 11, the company announced a partnership with Shopify (SHOP), under which television viewers can make direct purchases from Shopify merchants using their TVs. The payment will be made through Roku Pay. This integration of e-commerce capabilities into the Roku platform expands the opportunities for both Roku users and Shopify merchants.
Furthermore, The Roku Channel was recently made accessible on devices powered by Google’s Android TV operating system. Users can now download The Roku Channel directly from Google’s Play Store. This strategic expansion allows Roku to tap into the growing demand for free, ad-supported streaming television services.
These efforts, including the enhancement of its content slate and exploring new advertising opportunities, are expected to help ROKU expand its user base and boost its potential for generating revenue from offerings.
What is the Prediction for ROKU Stock?
According to the analyst consensus, ROKU is a Moderate Buy based on 10 Buy, six Hold, and three Sell ratings. The average Roku stock price target is $68.83, implying 9.81% downside potential.
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