Roku Rises As Active Users Top 50 Million, Streaming Hours Surge In 2020

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Shares of Roku (ROKU) are on the rise on Wednesday, January 6, after the company announced an estimated 51.2 million active accounts for the fourth quarter. Roku also announced an estimated 17 billion streaming hours for the quarter and a total of 58.7 billion hours in 2020, an increase of 55% year-over-year.

On Tuesday, ahead of the pre-announcement, Wells Fargo (WFC) analyst Steven Cahall raised his price target on the shares to a Street-high of $414, citing a "big runway" for the company's average revenue per user in 2021 and beyond, driven by ad-supported video on demand.

51.2 MILLION ACTIVE ACCOUNTS

Roku has announced preliminary estimated data for the fourth quarter ending December 31, reporting 51.2 million active accounts - up by approximately 14 million accounts in 2020. The company also announced an estimated 17 billion streaming hours in the fourth quarter for a total of 58.7 billion hours in 2020, an increase of 55% year-over-year for the quarter and the full year.

"I'm excited that more than 50 million households now turn to Roku for their TV viewing," said Roku CEO Anthony Wood. "The world is moving to streaming and we look forward to continuing to help viewers, advertisers, content publishers, and TV manufacturers succeed in the Streaming Decade." In February, Roku will report final operating metrics and financial results for the fourth quarter and full year 2020.

In a CNBC interview, Roku CEO Anthony Wood said that streaming is "definitely here to stay. But there's still a long way to go. There's a lot of room to keep growing in the streaming business. Cord-cutting is a big phenomenon in the U.S. and will continue."

He added: "In terms of competition, we've always competed with big companies since the beginning. We take our competition very seriously, but results show we're doing a good job. We never said we were going to move into original content. We have the Roku Channel and we try to keep its content fresh. TV is moving to streaming which means all TV advertising is moving to streaming."

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