Roku shares surged Monday after the company announced a partnership with Amazon Ads.
The move gives Amazon advertisers access to an estimated 80 million connected TVs in the U.S. The technology is expected to be made available to advertisers using Amazon’s demand-side platform by the fourth quarter of 2025.
Roku (ROKU) shares popped Monday following news of a new advertising collaboration with Amazon (AMZN) Ads, which Roku claims will provide advertisers with access to more than 80% of households using connected televisions.
Shares of Roku jumped nearly 10% in recent trading, while Amazon stock ticked up 1%, as broader markets recovered from last Friday’s declines.
According to Roku, the deal with Amazon Ads will enable advertisers to reach around 80 million connected TVs across platforms including The Roku Channel, Amazon Prime Video, and other streaming services hosted on Roku and Fire TV. The integration allows Amazon’s demand-side platform to identify logged-in viewers on the Roku operating system, the company explained.
The technology is expected to be made available to advertisers using Amazon DSP by the fourth quarter of 2025.
With Monday’s rally, Roku shares have gained nearly 50% over the past year. Roku stock soared after announcing an exclusive advertising partnership with Amazon’s ad-selling service.
This new ad collab is a big deal for advertisers
The new deal gives advertisers access to Roku’s media-playing platform through the Amazon DSP advertising platform. It’s an exclusive partnership with deeper data access than Roku’s existing ad-sales deals, making Amazon’s service the easiest route to placing ads across all of Roku’s original and third-party content services.
The companies said that this combination grows the effective market reach for ad buyers while also placing more varied marketing messages in front of the consumer. Between Roku’s media players and the Amazon Prime Video service, Amazon DSP now reaches 80% of American media households.
The partnership should make a bigger difference to Roku’s business. The company now has direct ad placement deals with the three largest ad management platforms.
After Monday’s price jump, Roku’s stock has gained 42% in 12 months. It still looks quite affordable at 2.8 times trailing sales, despite the company’s habit of delivering year-over-year revenue growth of 15% or more in recent quarters.
Pump Radar
Stock Alerts