Streaming-video platform Roku (NASDAQ:ROKU) stock is preparing to release the company’s first-quarter 2022 financial results on April 28. It will be a highly anticipated event, and dip-buyers should consider taking a position before the data is disclosed.
The cable cord cutting movement is under way, but Roku’s loyal shareholders haven’t benefited from this lately. Shockingly, the stock price has declined from a 52-week high of $490.76 to less than $110.
It’s possible that the market’s negative sentiment toward technology stocks has claimed ROKU stock as collateral damage. A positive earnings release could be the major catalyst that turns the tide.
Despite the share-price slide, Roku has celebrated some positive news recently. For one thing, Roku launched CNN subscription streaming service CNN+ in the U.S. on the Roku platform. According to the press release, CNN+ features eight to 12 live daily shows, “new CNN+ Original Series and a library of more than 1,000 hours of award-winning programming from the CNN Original Series and CNN Films teams.”
That’s good for news-programming viewers and great for Roku’s shareholders. Yet, there’s an even more eye-catching development afoot.
This month, Roku extended its multi-year distribution agreement with Amazon (NASDAQ:AMZN). Moreover, “Customers can continue to access the Prime Video and IMDb TV apps on their Roku devices.”
What could be better than a deal extension with a famous e-commerce behemoth like Amazon? Somehow, Wall Street just isn’t recognizing ROKU stock’s true value now.
Amazon and CNN aren’t going to partner with a company that has no future. Roku has been a content-streaming pioneer in the U.S. for years. It’s a shame that the company’s shareholders have had to deal with ultra-pessimistic market sentiment for so long.
Right now, investors can own ROKU stock not seen since the summer of 2020. The upcoming earnings report could be a beat or a miss, but with the sentiment being so low, a positive surprise just might be in store.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.