Business

Roku shares spike after stock market debut

NYSE traders Image copyright Reuters

Roku, Nasdaq's newest company, stole the show on Thursday, as shares in the firm, which is known for televisions with built-in streaming, jumped nearly 70% on its first day of public trading.

The surge came amid more moderate market gains.

The Dow Jones increased 40.49 points, or 0.18%, to 22,381.2, while the wider S&P 500 rose 3.02 points or 0.12% to 2,510, a new high.

The Nasdaq was almost unchanged at 6,453.45.

Roku's initial public offering was expected to raise almost $220m (£163.75), with shares priced at $14. The price jumped to $23.50 by the close of trading.

The success of the stock market debut marked a change from some other high profile starts. Shares in social media company Snap, for instance, have dropped since its March launch.

Roku made almost $400m in revenue last year, but had a net loss of more than $42m. The firm said revenue was up 23% year-on-year in the first six months of 2017.

The company says it expects strong growth amid a broader shift to online television.