Streaming giant Roku (ROKU) stock jumped sharply after the company announced a major advertising partnership with Amazon (AMZN). The deal, which aims to expand the reach of connected TV advertising, has sparked renewed investor optimism as Roku continues to build momentum in the competitive streaming landscape. Following the announcement, Roku stock gained over 9% in pre-trading hours, while AMZN was up by 0.62%.
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Roku and Amazon Unite for Massive CTV Ad Push
With this partnership, Amazon Ads and Roku have launched a new integration that, exclusively through Amazon’s DSP, gives advertisers access to the largest verified connected TV (CTV) audience in the U.S. This means advertisers can now use Amazon’s ad-buying tools to reach a larger, combined audience, estimated at around 80 million connected TV households in the U.S.
Notably, early tests of the integration delivered impressive results—advertisers reached 40% more unique viewers without increasing their budget and reduced ad repetition by nearly 30%, effectively tripling the value of their ad spend.
Meanwhile, the deal connects signed-in users across Roku and Fire TV devices, along with top streaming apps like The Roku Channel, Prime Video, Disney+ (DIS), FOX (FOXA), Paramount+ (PARA), Pluto TV, Tubi, and Warner Bros. Discovery (WBD).
Commenting on the partnership, Paul Kotas, senior vice president at Amazon Ads, called the deal with Roku “a major step forward for advertisers,” enabling them to leverage Amazon’s advanced technology to more precisely target and measure campaigns across streaming platforms. Echoing the sentiment, Charlie Collier, President of Roku Media, said the collaboration delivers “a unified, future-ready solution at an unprecedented scale,” adding that the two companies are “uniquely positioned” to demonstrate performance and set apart DSP offerings for mutual advertisers and marketers.
What Is Roku’s Target Price?
According to TipRanks, ROKU stock has received a Moderate Buy consensus rating, with 13 Buys, seven Holds, and one Sell assigned in the last three months. The average Roku stock price target is $86.83, suggesting a potential upside of 5.7% from the current level.
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