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Year ROKU bulls woke up to great news on Wednesday and were able to enjoy a nearly 20% rise in stocks.
The stock opened at $ 236 and reached $ 260 after lunch time due to Google being nice and deciding to let YouTube stay on the streaming platform.
“Starting today, we have agreed to a multi-year extension with Google for YouTube and YouTube TV,” Roku said on Twitter. “This agreement represents a positive development for our shared customers, as both YouTube and YouTube TV are available to all streamers on the Roku platform.”
The two digital media brands have not been on good terms since disagreeing earlier this year on the division of ad revenue. In April, Roku removed the YouTube TV app from its channel store after they were unable to reach what is known as a “carriage agreement.”
And according to the CNBC report this morning by Julia Boorstin and Alex Sherman …
“Roku requests a percentage of advertising inventory to sell to its customers on each transportation deal it negotiates. YouTube, the world’s second-most-visited website, dominates streaming viewing and has the popularity to reject Roku’s demands. Roku Google claimed that it required it to prefer YouTube’s content over other providers in the company’s search results. “
What are you watching?
It seems like a good deal for both of us. In the video accompanying this article, I admit that I didn’t even know that my family was watching YouTube on our Roku TV.
Since I don’t watch a lot of TV, the only thing that matters to me is the “connected TV” commercial success of one of my favorite companies, The trading table TTD.
I’ve been recommending purchases at The Trade Desk for less than $ 100 for the past two weeks and those opportunities may end soon. I call them the “CME of advertising” because of their model for programmatic, targeted, and data-driven ad buying, much like hedge funds – something we trade with every day.
Going back to the Roku-YouTube tiff, what I still don’t know is if Google runs ads like we normally see in the YouTube algorithm. I guess I’ll have to look and find out.
And while I think this was a smart move for Google, it was a stroke of luck for Roku because without YouTube they would be at a competitive disadvantage as both Amazon Fire TV and Apple TV offer it.
Apparently, Google was about to launch Roku tomorrow, December 9, right in the heart of Christmas shopping, which is increasingly done from the subway, through the sofa.
Pinterest is building something for creators
Speaking of YouTube and shopping, one of my favorite offers right now is Pinterest LEGS. The Social Dream Board is making forays into e-commerce and its next big initiative to monetize pinners is expanding the video capabilities on the platform.
The Pinterest management took a big leap in this direction less than two months ago. As Variety exclusively reported on October 25 …
YouTube Director of Content Partnerships Malik Ducard Retires to Join Pinterest
Then, in November, they launched “TwoTwenty,” a kit of experimental products and an in-house incubator. Here’s how they described it …
“With thousands of experiments conducted weekly and the latest in computer vision and machine learning powerhouse technology like camera search, inclusive products, and live shopping, innovation is built into the DNA of Pinterest. Today we announce officially an extension of that spirit with a new TwoTwenty, named after Pinterest’s first office address, TwoTwenty is an incubator team of engineers, designers, and content and product experts dedicated to rapid testing and launching of new ideas like Pinterest TV “.
I’m sure this was in the works before Malik dropped the anchor, but I bet he’s very involved as he basically made YouTube what it is with content and partnerships.
Then this week, Pinterest made a key acquisition for creators with the purchase of video platform Vochi for an undisclosed sum. This is what I wrote to my TAZR Trader group this morning, where we own PINS shares …
In a company blog post on Monday, Pinterest said: “We are announcing that we have acquired Vochi, a video creation and editing application focused on democratizing quality tools for creators. The acquisition of Vochi is part of our commitment. to help creators deliver higher quality video content to Pinterest. Having more inspiring content can provide Pinterest users with more ways to view, create and buy creator ideas. The Vochi app will continue to be available as a standalone app by now. We look forward to working with the Vochi team and building more innovative creator tools together. “
As we’ve been talking about, PINS is working hard to make video an enduring and enriching part of the platform. They are creating their own “creator economy” to compete and sync with YouTube, especially after snatching the leader of YouTube’s success of the past decade, Malik Ducard, and making him PINS’s first chief content officer.
Lets go shopping!
Finally, at today’s Cook’s Kitchen, I connect to another favorite electronic communications platform, BigCommerce BIGC. We’ve been buying it close to $ 40 and adding more today on this catalyst …
Bank of America kicks off BigCommerce coverage with a Buy rating and a price target of $ 66 – Analyst Koji Ikeda wrote in his report: “The company evaluates well in terms of its ability to generate healthy growth trends for the foreseeable future. , its relatively lower exposure to transaction volume volatility and its ability to target B2C and B2B customers at the same time. Management is considered to be the leader in the end market. “
I wonder if the analyst was referring to increased exposure to “transaction volume volatility” for larger platforms like Amazon, Alibaba and Shopify SHOP.
In my video last Wednesday, Growth Stock Meltdown: ROKU and PYPL vs. NVDA and TTD, I said to watch Shopify for some buy opportunities below $ 1400 after dropping from new highs above $ 1700.
He got his shots on Friday and Monday with solid “target locks” near $ 1350. Unfortunately, I missed it. Let me know if you didn’t fail.
And even though I told them that I couldn’t get the ROKU buy back close to $ 200 because I didn’t quite understand the opportunity, I told them to give TTD a try for less than $ 95.
The main message is to put your money where your homework is. In other words, you will always have more conviction in the companies that you dig deeper and understand better.
Disclosure: I own TTD, BIGC and PINS for Zacks TAZR Trader.
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