Roku Stock Rises in Market Debut
The video streaming device maker had set its initial public offering price late Wednesday at $14 per share, or a market value of $1.3 billion.
The stock of video streaming device maker Roku rose in its stock market debut on Thursday. It opened just after 10:35 a.m. ET at $15.78, up 12.7 percent.
About 10 minutes later, it was up 28 percent at $17.94, and at the closing bell it had closed a whopping 68 percent higher to $23.50.
The company had recently filed for an initial public offering and late Wednesday had set its IPO price at $14 per share, which raised about $219 million and made for a market value of $1.3 billion.
At the closing bell Thursday, though, Roku's market cap was $2.2 billion.
The Los Gatos, Calif.-based company, which makes TV set-top boxes and other devices, listed its stock on the Nasdaq under the ticker symbol ROKU. Its filing has shown that Roku lost $42.8 million in 2016 on nearly $399 million in revenue, up 25 percent from 2015.
Roku, led by CEO Anthony Wood, has also disclosed that its users streamed more than 6.7 billion hours of programming on its platform during the first half of 2017, a 67 percent increase in streaming time from the same period a year earlier.
Since launching its first device in 2008, Roku has become a market leader for devices that help people stream content directly through their TV sets. Its set-top boxes and streaming sticks cost between $30 and $110. It also sells connected TV sets, known as Roku TVs, through partners such as TCL and Sharp.
Roku has always given consumers the choice of which apps they want to download. The company says that Netflix accounted for about one-third of all hours streamed during the first six months of this year but that revenue generated from Netflix was not material to its overall financial performance during the period. Roku does make money by sharing advertising revenue with some of the apps it carries.
Roku previously raised more than $200 million from investors such as News Corp, Viacom, Sky and Hearst.