Or so says Bob Lang, a contributor for TheStreet's sister site, Real Money.
"So you know Roku was one of those high beta, high growth names that just got absolutely just pasted in December along with a lot of other names that the market took a lot of stocks down with it. This stock I think barely had one uptick between December 1st and Christmas Eve. But it really came back in a big way. Had some heavy volume down there at the bottom which is kind of what we'd like to see when the stock bottoms out. Just a couple of days after after Christmas that it actually exploded higher with much of the market on December 26 and it kind of consolidated for about four or five days," said Lang.
He continued, "And what we'd like to see happen Kevin is with the stock to bust out past the high of the first breakout date within about four to seven days. So this actually occurred on day number 7 which was last Friday. So that Friday if it broke out and closed near the highs of the day actually over the 20 day moving average too. I mean it really made a huge thrust last Friday which was the fourth of January. The news came out on Monday and the stock yapped higher into into the opening of the day. Just about 36, 37 dollars. And it didn't stop from there. and it took off and it closed near the highs of the day. Well over 40 bucks. The stock ran up almost 27 percent on that day. And I think it was due to some news that came out early in the morning."
Watch the full interview for Lang's insight on Roku.