Business

Netflix and Roku shares surge ahead of Apple's video-streaming event

Bloomberg

Roku Inc. and Netflix Inc. rose ahead of a highly anticipated event Monday afternoon where Apple Inc. is expected to unveil a video-streaming service.

Analysts have speculated that Roku, a platform for streaming services, could be a beneficiary from Apple’s entry into the space. Meanwhile, Raymond James kept its strong buy rating on Netflix, saying media reports about Apple’s service suggest it “does not appear that different than others, and thus is unlikely to change the competitive landscape.”

Netflix rose 0.8 percent at 11:46 a.m. in New York, while Roku jumped as much as 5.2 percent. Apple pared declines after earlier falling as much as 2 percent.

BTIG wrote earlier that Apple’s event could “trigger a sell-off in the stock,” as there is little that Apple could say “that will satisfy media skeptics.” Despite that, it raised its price target to $220 from $189 and suggested the company has “a pretty good start” entering the highly competitive streaming space, given the amount of cash it has on hand, along with the huge user base of iPhone users.

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