What happened

Shares of Roku (ROKU -10.29%) bounced on Wednesday, jumping as much as 3.7%. As of 10:55 a.m. ET, the stock was still up 2.7%.

There wasn't a single catalyst that sent the streaming pioneer higher, but rather several bits of news that created lift for the beaten-down stock.

So what

As my colleague Demitri Kalogeropoulos reported yesterday, the company is launching its high-end Roku Ultra streaming player in Canada, which could boost the company's total accounts number, which currently stands at 63 million. 

Netflix revealed that Monster: The Jeffrey Dahmer Story has accumulated 196 million hours viewed, making it the platform's biggest hit since the release of Stranger Things 4 back in July, which had 301 million hours viewed. Why is this news good for Roku? As the leading streaming aggregation platform, anything that's good for streaming is good for Roku.

Finally, subscribers to Walt Disney's streaming service, Disney+, received an email this morning regarding a change to the company's subscriber agreement in advance of its Dec. 8 launch of its ad-supported tier. This will come fast on the heels of a similar move by Netflix on Nov. 1. These lower-cost viewing options will no doubt boost overall interest in streaming, which is also good for Roku.

Now what

Roku has taken a beating over the past year, with shares down roughly 83% from their high reached late last year. Furthermore, Roku stock is now trading at roughly two times next year's sales, the lowest valuation in its history. 

It's important to remember, however, that streaming growth may be down, but it's not out. Cord-cutting continues at a brisk pace, as the major pay-TV providers lost nearly 3.9 million subscribers during the first six months of 2022 and are on track to exceed the 4.7 million subscribers shed last year, according to Leichtman Research Group. History suggests that those ditching cable turn to streaming for their home entertainment needs, so this is a positive for Roku. 

Given the available evidence, it's clear that viewers have simply hit the "pause" button on streaming, making Roku stock an unqualified buy.