Roku Inc. (ROKU) shares have closed higher for eight straight weeks, and the momentum doesn't look to be dissipating anytime soon.
On Monday, Roku's stock climbed over 8.8% to $56.94. Last week, shares gained close to 15%.
One doesn't have to look too far to see what has been spurring the recent gains.
As TheStreet pointed out last week, Twenty-First Century Fox Inc. (FOXA) said it plans to keep its minority stake in Roku after the ink dries on its deal with Walt Disney Co. (DIS) . Since Fox plans to sell its stake in Roku rival Hulu as part of the deal, a decision to hold onto Roku suggests media giant Fox still has high hopes for the company. Or, it could mean Fox makes a play to acquire Roku.
Last month, Roku announced strong third quarter results that easily topped Wall Street's expectations. Sales of $124.8 million grew 25% from the last quarter and beat FactSet analysts' forecast by 13%. Active accounts jumped 48% to 16.7 million and average revenue per user rose 37%.
Since its IPO earlier this fall, Roku has watched its share price rocket 260%.
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