Roku stock jumped Tuesday after the streaming video platform announced a partnership with Shopify that will allow viewers to buy products through their TVs using their remote controls.
When viewers see an ad from a Shopify merchant, they can press OK on their Roku remote to learn more about the product and purchase it directly from their TV. They will be able to check out with Roku Pay, Roku's payments platform, and return to their streaming experience once they have completed the purchase.
Purchasers will receive email confirmation of their order directly from the merchant once the transaction has been processed.
Men's apparel brand True Classic, game-based connected rower Ergatta, and wellness brand Olly have signed on as initial partners.
Roku calls its interactive advertisements Roku Action Ads. Other retail and commerce partners using Roku Action Ads include Walmart and DoorDash.
Roku Stock Flirts With Breakout
"Bringing a Shopify purchase experience to television for merchants is an industry first," Peter Hamilton, Roku's senior director of ad innovation, said in a news release.
He added, "This is a great example of Roku's unique platform position to make advertisers unmissable across the streamer's journey, from power on to purchase complete."
On the stock market today, Roku stock rose 11.1% to close at 75.43. In morning trades, Roku stock hit a buy point of 75.45 from a cup-with-handle base, according to IBD MarketSmith charts. It climbed as high as 77.36 before retreating.
Roku stock ranks sixth out of 21 stocks in IBD's Leisure-Movies & Related industry group, according to IBD Stock Checkup. But it has a subpar IBD Composite Rating of 48 out of 99.
Meanwhile, Shopify stock is on IBD's Leaderboard and Tech Leaders lists. Shopify has an IBD Composite Rating of 98.
Shopify stock advanced 2% to 63.15 on Tuesday.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
