Roku's Howdy Service Now Available On Prime Video

Roku (NASDAQ:ROKU) shares are down on Tuesday. The company disclosed the launch of its Howdy streaming service on Prime Video, expanding its reach beyond its own platform. This move comes amid a mixed market day, with the Nasdaq slipping 0.21%, adding pressure to Roku’s stock performance. • Roku stock is facing resistance. Why is ROKU stock retreating? Adds $2.99 Howdy to Prime Video The Howdy service will be available for $2.99 per month, featuring a library of popular films and shows, including titles such as “A Haunting in Venice” and “Sleepless in Seattle.” This marks the first time Howdy will be accessible outside of Roku’s platform, aiming to attract a broader audience. In addition, Roku’s strategy focuses on enhancing its subscription offerings, with Howdy joining a competitive landscape that includes more than 100 subscription options available on Prime Video. The expansion is expected to leverage Roku’s existing user base, which reaches over 125 million households in the U.S. Apple TV Hits Roku Premium Subscriptions This month, the company announced the addition of Apple Inc.'s (NASDAQ:AAPL) Apple TV to its premium subscriptions on The Roku Channel. The addition of Apple TV allows Roku customers in the U.S. to subscribe to the service for $12.99 per month or $99 per year, with a seven-day free trial available. ROKU RSI 53.21 as MACD Turns Bullish The broader market is experiencing mixed results, with the S&P 500 up 0.10% and the Russell 2000 gaining 0.78%. Roku’s decline occurs as the Technology sector is generally lower today, indicating that broader market dynamics may be influencing its performance. Roku is currently trading 1.4% above its 20-day simple moving average (SMA) but is 2.7% below its 100-day SMA, indicating some short-term strength while struggling with longer-term trends. Over the past 12 months, shares have increased by 19.97% and are currently positioned closer to their 52-week highs than lows. The RSI is at 53.21, which is considered neutral territory, suggesting the stock is neither overbought nor oversold. Meanwhile, MACD is at 0.1599, above its signal line at 0.1095, indicating bullish momentum. The combination of neutral RSI and bullish MACD suggests mixed momentum. Key Resistance: $103 Key Support: $91 ROKU April 30 Earnings: EPS 34 Cents, Rev $1.20 Billion Roku is slated to provide its next financial update on April 30 (estimated). EPS Estimate: 34 cents (Up from loss of 19 cents) Revenue Estimate: $1.20 billion (Up from $1.02 billion) Valuation: Forward P/E of 165.8x (Indicates premium valuation) Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $128.16. Recent analyst moves include: Pivotal Research: Buy (Raises target to $140 on Feb. 16) Evercore ISI Group: Outperform (Raises target to $150 on Feb. 13) Oppenheimer: Outperform (Raises target to $120 on Feb. 13) ROKU ETF Exposure: ARKW 5.11%, ARKK 4.56% ARK Innovation ETF (NYSE:ARKK): 4.56% Weight ARK Next Generation Internet ETF (NYSE:ARKW): 5.11% Weight Significance: Because Roku carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock. ROKU Stock Price Activity: Roku shares were down 2.50% at $95.36 at the time of publication on Tuesday, according to Benzinga Pro data. Photo via Shutterstock