What happened
Shares of Roku (ROKU 2.62%) are running sharply higher so far this week, surging as high as 19.4%. As of 1:12 p.m. ET today, the stock was up 12.4%. The streaming-video pioneer was riding the wave of several positive developments that made investors sit up and take notice.
So what
The biggest catalyst was word that a deal had been reached in the long-standing feud with Alphabet's (GOOGL 2.01%) (GOOG 2.25%) Google. The pair came to satisfactory terms that will keep YouTube and YouTube TV on Roku's platform, on the verge of the previous deal's expiration.
Image source: Getty Images.
Roku announced the agreement on Twitter, saying: "Effective today, we have agreed to a multi-year extension with Google for YouTube and YouTube TV. This agreement represents a positive development for our shared customers, making both YouTube and YouTube TV available for all streamers on the Roku platform."
The technology companies had been airing their dispute in public for months, so investors were pleased to see a resolution.
Now what
While the deal regarding YouTube was no doubt the biggest catalyst, there were several other developments that likely played into Roku's rising stock price.
The company revealed that its first original, feature-length movie, Zoey's Extraordinary Christmas, was the No. 1 viewed program globally on The Roku Channel during its opening weekend, while also taking the crown as The Roku Channel's most-watched movie premiere in Canada. Adding compelling original content is just another way to attract users to the growing popularity of its platform.
Finally, Roku announced the opening of another international office, this time in Amsterdam. This helps illustrate the company's growing push into additional markets, joining previous expansions into Denmark, Ukraine, and the United Kingdom. Roku-branded smart TVs are already top-sellers in Brazil, Mexico, the U.K., and Germany.
The company is employing the same strategy that made it the top streaming platform in the U.S. and Canada. Roku announced just last month that it was also the No. 1 streaming platform in Mexico, completing its North American trifecta.
With this continuing stream of good news, it's little wonder Roku shares were higher this week.
