Shares of Roku Inc. are up 4.2% in Monday morning trading after Needham analyst Laura Martin called the company’s Roku Channel its “next $1 billion asset.” Roku said last week that the Roku Channel app would be coming to Samsung Electronics Co. Ltd smart TVs this summer. The Roku Channel aggregates ad-driven content from across other apps on Roku’s platform, and the company doesn’t own any of the content. The app “raises ROKU’s total addressable market (TAM), gives Roku a clear mobile strategy, and creates a stronger brand & bigger moat,” Martin wrote. She sees it doubling Roku’s revenue per hour of content streamed, for current viewers. Roku shares are down 38% so far in 2018 but up 128% from their September IPO price of $14. The S&P 500 is down 1.6% since the start of the year.
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