Roku Stock Hits a New 52-Week High: Is It a Buy?

Roku's stock has been rising in recent days amid speculation of an acquisition.

The stock may not experience much volatility between now and when the deal is expected to close.

Roku (NASDAQ: ROKU) has been soaring in recent days amid rumors of a major acquisition, sending the stock to new heights. On Monday, a deal was formally announced, and the stock fell modestly, closing just under $141, up 30% year to date. Not only has it hit a new 52-week high recently, but it's now trading at levels it hasn't been at in multiple years.

Is it likely to rise even higher, or is it too late to buy the streaming stock now that a deal has been announced?

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On Monday, Fox Corp (NASDAQ: FOX) announced it reached a deal to acquire Roku for an enterprise value of roughly $22 billion, funded through both cash and stock. Shares of Roku were rising even before the news came out, as investors often buy the rumor and sell the news. And on Monday, the stock would actually fall by just under 2%.

The move enables Fox to reach more customers through Roku's popular streaming platform, which more than 100 million households use. It unlocks greater growth and monetization opportunities for the business.

Typically, when an acquisition is announced, the stock of the company being acquired rises to that valuation, unless investors doubt the deal will go through. With Roku's stock rising 14% over the past month, its market cap is now around $21 billion, suggesting investors have a lot of confidence the deal won't run into any hiccups.