Roku stock jumps 10% as company adds Apple TV app

Bloomberg | Bloomberg | Getty Images

Shares of Roku jumped more than 10% on Tuesday after the company announced that the Apple TV app is now available on its platform.

Roku users are now able to access the app through the Roku Channel Store, allowing customers to subscribe directly to Apple TV channels using their Apple ID and password, according to a release sent Tuesday morning.

Users will be able to browse, rent and buy TV shows and movies from Apple while also having access to all the shows and movies they have previously purchased from iTunes, the release said.

This news comes ahead of the Nov. 1 launch of Apple’s new streaming service, Apple TV+, which Roku users will be able to subscribe to within the Apple TV app. Users will still pay the full $4.99 subscription price for the streaming service.

“With the Apple TV app coming to Roku, our customers will enjoy an even broader range of exciting entertainment, including the highly anticipated Apple TV+ service,” said Scott Rosenberg, Roku’s senior vice president and general manager of platform business, in the release.

Apple TV+ is currently priced lower than several competing stream platforms. Disney’s streaming service, Disney+, will cost $6.99 per month while Netflix’s most popular plan is $12.99 per month. Disney+ launches on Nov. 12. Hulu with ads is currently priced at $5.99 per month.

As of Tuesday, analysts covering Roku had an average target price of $134.94 on the stock, according to FactSet, with twelve of the analysts surveyed holding a “buy” rating.

Roku shares also jumped last week after Macquarie said the company could triple its user base by 2022, pointing to growth in international markets. Macquarie analysts also noted that Roku could benefit from “powerful growth” in connected TV devices and advertising.

Apple’s stock was mostly unchanged on Tuesday.

CNBC’s Yun Li, Alex Sherman and Annie Palmer contributed to this report.

Related posts

Macy’s stock rally collapses, shares tumble after company warns ‘gradual’ recovery ahead


Vice Media CEO slams Big Tech as ‘great threat to journalism’ in layoffs memo


Lyft shares jump 15% as company reports more riders than last year despite coronavirus