Roku stock rises on Susquehanna Financial upgrade

Yahoo Finance Live anchors Julie Hyman and Brad Smith discuss Susquehanna Financial’s Positive rating on Roku stock.

Video Transcript

BRAD SMITH: Also, we've got to talk about shares of Roku. They're rising today after the streamer got an upgrade from Susquehanna Financial to positive from neutral, citing attractive risk/rewards and positive long-term opportunities.

You were taking a look at shares here premarket. They are holding on to some gains right now.

And for Roku, I mean, I don't know how often-- I have not logged back into a Roku since, my gosh, like two years now. I don't know. I changed over my TV. I just haven't used it. So I don't know what's on there anymore.

JULIE HYMAN: Do I use Roku? Sometimes maybe we use Roku to access certain channels, I guess.

BRAD SMITH: Well, it's a hub, right? So, yeah.

JULIE HYMAN: Yeah, yeah, yeah.

BRAD SMITH: I mean, similar to your usage, I guess it's-- it really just comes down to how many of those different streaming services they were able to keep on their hub as many of them were saying, you know what? We don't know that we need you to be the access point or the sole access point, especially as we're building out our own kind of user experience. And for that, you would want to insulate it in the data that you're taking on versus what you're passing on to a Roku instead.

JULIE HYMAN: Yeah. I mean, I need-- this is a good reminder. I need to do some organization, some housecleaning of my streaming.

BRAD SMITH: Clean up your algorithm.

JULIE HYMAN: Yeah. Yeah, something like that.

One more interesting note that Shyam Patil mentions, the Susquehanna analyst. There's no balance-sheet risk from Silicon Valley Bank, right? Roku is one of the publicly traded companies-- I think the biggest--

BRAD SMITH: One of the largest.

JULIE HYMAN: --that had exposure to SVB because of its banking relationship with the company but then, you know, in theory got all of its money out of there or, you know, recouped all of its deposits. So the analyst there just emphasizing that it's not an issue for the company.

BRAD SMITH: Nobody's asking about the Quibi content on Roku anymore. I mean, remember when that was all the rage?

JULIE HYMAN: Does that still exist?

BRAD SMITH: Well, they licensed a bunch of the content as Roku was trying to ramp up their own original content offerings too.

JULIE HYMAN: Yeah, I don't know--

BRAD SMITH: Nobody asks about that anymore.

JULIE HYMAN: I'm not confused as to why.