Friday’s Headlines: Roku Is Reaping The Rewards Of Increased Streaming Competition
1. Shares in Roku jumped more than 6% after-hours on Thursday following an earnings report that beat expectations and gave optimistic guidance. Roku’s revenue for the quarter jumped to $411.2 million from $276 million, versus expectations of $392 million, while losses-per-share matched expectations at $0.13. The company had 36.9 million active accounts, up 4.6 million from last quarter. Streaming hours grew to 11.7 billion, up 60% from a year earlier. Read the full story here.
2. Tesla has announced that it will sell $2 billion of common stock in a new public offering, just days after CEO Elon Musk said it wouldn’t “make sense” to raise more cash. Musk will buy up to $10 million worth of stock in the offering, with the company planning to use the proceeds “to further strengthen its balance sheet.” Musk said in response that Tesla is “spending money as quickly as we can spend it, sensibly,” and that the company is generating positive cash flow. Get the full story here.
3. A federal judge Thursday ordered a temporary block on the JEDI cloud contract, which was awarded to Microsoft. The move comes after prolonged protests from Amazon regarding the $10 billion contract, which it claims was unfairly awarded to Microsoft, and that President Trump was deliberately hindering Amazon’s chances. The Joint Enterprise Defense Infrastructure, or JEDI, cloud computing contract is intended to modernize the Pentagon’s IT operations. Read here for more.