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Why Roku Stock Is Soaring Today

By Anders Bylund - Nov 11, 2020 at 4:12PM

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Some Roku players now support the three most popular home-assistant services, including -- for the first time -- Apple's Siri.

What happened

Shares of Roku ( ROKU 2.24% ) jumped when the company announced support for Apple ( AAPL 2.15% ) AirPlay 2 and HomeKit features in the next operating-system update. Stock prices rose as much as 6.9% on Wednesday afternoon.

So what

Roku first unveiled plans to support Apple's smart home and digital-assistant features in late September, but users and investors were left without a launch date at the time. HomeKit smart-home controls and AirPlay 2 media services are rolling out to a select handful of Roku devices today as part of the Roku OS 9.4 update. With this upgrade, users with an iPhone, iPad, or Mac can share music and pictures directly from their Apple devices to the Roku setup in the living room.

So far, the Apple-friendly feature set is limited to high-end devices with 4K video capabilities. The updates will roll out in waves, starting with stand-alone devices, such as the Roku Premiere and Ultra, followed by Roku-powered TV sets in the coming weeks.

A young couple share a bucket of popcorn in front of the TV.

Image source: Getty Images.

Now what

The addition of Apple HomeKit also adds support for the Siri digital assistant, making Roku the first media-streaming device maker to deliver support for the three leading assistant services in a single device. Roku hardware has offered support for Amazon ( AMZN 1.11% ) Alexa and Alphabet's ( GOOG 0.90% ) ( GOOGL 0.81% ) Google Assistant for years.

Roku's expanded feature set was pre-announced more than a month ago, so today's rollout shouldn't be a big surprise. Investors are basically applauding Roku today for following through on an earlier promise.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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Stocks Mentioned

Roku Stock Quote
Roku
ROKU
$210.16 (2.24%) $4.61
Apple Inc. Stock Quote
Apple Inc.
AAPL
$165.32 (2.15%) $3.48
Alphabet Inc. Stock Quote
Alphabet Inc.
GOOGL
$2,863.10 (0.81%) $23.07
Amazon.com, Inc. Stock Quote
Amazon.com, Inc.
AMZN
$3,427.37 (1.11%) $37.58
Alphabet Inc. Stock Quote
Alphabet Inc.
GOOG
$2,875.93 (0.90%) $25.52

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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