Roku Stock Hits Buy Point On E-Commerce Tie-Up With Shopify

Roku Stock Hits Buy Point On E-Commerce Tie-Up With Shopify

The Roku (ROKU), stock rose Tuesday after the streaming platform announced a new partnership with Shopify, which will enable viewers to purchase products using their TV remotes.

If a viewer sees an advertisement from a Shopify seller, they can use their Roku remote by pressing OK to find out more about the product or purchase it from their TV. Once they've completed their purchase, they can check out using Roku Pay.

Once the transaction is complete, the purchaser will receive an email confirmation from the merchant.

Initial partners include the men's clothing brand True Classic, the game-based connected rower Ergatta and wellness brand Olly.

Roku's interactive ads are called Roku Action Ads. Roku Action Ads are also used by Walmart (WMT), DoorDash (DASH) and other retail and commerce partners.

Roku Stock Flirts with Breakout

In a press release, Peter Hamilton, Roku’s senior director of advertising innovation, stated that the introduction of Shopify to TV for merchants was an industry-first.

He said, "This is an excellent example of Roku’s unique platform positioning to make advertisers visible throughout the streamer’s journey, starting with powering on and ending with a completed purchase."

Roku's stock price rose 11.3% today in afternoon trading. It reached 75.54. According to IBD MarketSmith charts, Roku stock reached a buy-point of 75.45 in morning trades from a base cup with handle. It reached a high of 77.36, before retreating.

According to IBD Stock Checkup, Roku is ranked sixth among 21 stocks within IBD's Leisure - Movies & Related Industry Group. It has a low IBD Composite rating of 48 out 99.

Shopify is also on IBD’s Leaderboard, as well as the Tech Leaders list. Shopify's IBD Composite rating is 98.

Shopify's stock rose 1.1% on Tuesday to 62.57.