It's been a surprisingly good year for some stocks, despite the pandemic. But it's been a great year for shares of streaming video platform name Roku (ROKU 3.40%).
Like all other stocks, this one was pressured lower in February and March after the coronavirus made landfall in the U.S. From peak to trough, Roku tumbled more than 60%. The stock's 450% rally from its March bottom, however, ultimately led to a gain of 137% for the year. A $1,000 investment made in Roku on the first trading day of this year would now be worth a whopping $2,367.
Stay-at-home efforts meant to curb the coronavirus turned out to be a boon for Roku. Consumers used that time watching a lot of television, relying on new streaming receivers to do so. Through the third quarter ending in September, year-to-date revenue of $1.13 billion was up 57% year over year. Revenue from sales of devices was higher by 40%, but the company has decidedly mastered the monetization of existing Roku receiver owners. Platform revenue was higher to the tune of 65% through the first three quarters of the year.
Although it's one of 2020's hottest stocks, analysts believe it's become overextended. It's now trading near $322 per share, well above the consensus price target of just above $253.