20 Takeover Rumors Hedge Funds Are Buying

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15. Roku, Inc. (NASDAQ:ROKU)

No. of Hedge Funds: 37

Roku, Inc. (NASDAQ:ROKU), headquartered in California, operates a leading TV streaming platform in the US. The company combines hardware and software solutions for both consumers and content providers. With its core products, streaming devices, smart TV operating systems, and ad-supported content services, the company competes with leaders like Amazon Fire TV and Apple TV. Differentiation is achieved in terms of proprietary OS and strong engagement metrics. Roku, Inc. (NASDAQ:ROKU) drives monetization across its growing user base using its advertising platform and original content.

In December 2024, analysts expressed that Roku, Inc. (NASDAQ:ROKU) might be a prime takeover target, causing the stock to surge. Some potential acquirers for the company include the streaming giant Netflix, ad tech player The Trade Desk, retailers like Target, and tech giants Amazon, Microsoft, and Alphabet. With its vast user base and valuable data, Roku, Inc. (NASDAQ:ROKU) attracts these giants to its company. In addition to their user data, the prompts for the takeover rumors surrounding the company are the increasing value of connected TV platforms, particularly after Amazon’s move to include ads on Prime Video and the acquisition of Vizio by Walmart for the company’s ad capabilities.

37 hedge funds piled up on Roku, Inc. (NASDAQ:ROKU), indicating a modest institutional interest. It also reflects a recognition of the company’s high fundamental value, which may have risen partly due to the takeover rumors.

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