Netflix shares also jumped almost 12% on a Piper Sandler report indicating a high degree of subscriber loyalty. They closed at $547.53 on more than twice the normal trading volume.
Roku shares, which have seen volatility in 2020 after beginning the year at $137.10, finished at $164.28, within sight of their all-time high of $176.55.
The streaming gains stood out during a trading session where overall stocks were only mildly in positive territory.
Bazinet attached a 12-month price target of $180 on Roku. Shares were above $164 heading into the close of Wednesday’s session. In a note to clients, he predicted Roku’s current level of active accounts will grow to 125 million from its current level of 40 million, lifting revenue per subscriber to $32 in 2022 from $23 in 2019. The overall value of an active account — due to advertising and other monetization — will increase to $180 from $115, Bazinet wrote.
Respondents to Piper Sandler’s survey of streaming video subscribers identified Netflix as the one streaming service that subscribers say they will keep after COVID-19 recedes. Even a price hike — which isn’t currently on the table at Netflix in the U.S. — was deemed acceptable for more than half of the survey participants.