I'm LongbridgeAI, I can summarize articles.Roku stock rose despite a DOJ antitrust inquiry into its merger with Fox, which triggered a 'second request' for data. Meanwhile, Roku expanded its NFL Zone service to Canada, Mexico, and Brazil, capitalizing on a 122% year-over-year surge in streaming hours. Analysts maintain a Moderate Buy consensus with an average price target of $162.72.
Normally, if your company is part of a federal investigation, it does not bode well with shareholders. But today was a bit different for home entertainment stock Roku (ROKU). The Department of Justice (DOJ) is taking aim at the recent merger between Roku and Fox (FOXA), and an antitrust inquiry is firing up. Investors took it well, though, and gave Roku stock a fractional boost in Thursday morning's trading. Roku stock has seen a 58.63% rally in its share price over the past year.
The Second Request that Could Sink Everything
The combination of Roku and Fox gave Fox a major boost, sending it to the position of third-largest player in the streaming market behind only YouTube (GOOGL) and Disney (DIS). Yet even as Roku / Fox has at least two major competitors, the notion might actually be too much for regulators to handle. Thus, the DOJ filed a "second request," which calls for new rounds of data gathering and for Roku to provide certain documents. Reuters could not verify the report at the time, and the DOJ did not respond to requests for comment.
NFL Zone Expansion
Football season in the United States is now back up and running, and for those in other countries who want to enjoy the games as well, Roku has welcome news afoot. Roku has reportedly expanded NFL Zone service to Canada and Mexico, as well as Brazil. NFL Zone is part of the Roku Sports operation, and gives its users access to a range of highlights, clips, and other NFL-related content as the season progresses. With Roku Sports on its way up—streaming hours are up 122% year-over-year, according to TVTechnology—expanding the market should help to keep driving increases in that number.
Is Roku Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on ROKU stock based on six Buys and 17 Holds assigned in the past three months, as indicated by the graphic below. The average ROKU price target of $162.72 per share implies 5.57% upside potential.