June 16, 2025 — Exciting news shook the streaming world today as Roku, Inc. ($ROKU) and Amazon Ads unveiled a groundbreaking partnership, creating the largest authenticated connected TV (CTV) advertising network in the U.S. The announcement sent Roku’s stock skyrocketing, climbing 7.7% to 11.5% in a single day and hitting a three-month high of around $80-$83 per share. This deal is a big deal, and here’s why it’s got everyone talking.
A Massive Reach for Advertisers
The collaboration is a catalyst, capable of almost entirely reshaping brand approaches toward streaming audiences. Roku and Amazon Ads, together, stand for access to 80 million U.S. households-often cited as "over 80%" of the CTV market! That is, in other words, a huge chunk of the viewers who are watching shows on The Roku Channel, Amazon's Prime Video, Disney+, Paramount+, Tubi, or Warner Bros. Discovery through the system of Roku and Amazon Fire TV. Imagine having a front-row seat into nearly one living room in America!
Even cooler is the fact advertisers could use Amazon's DSP technology to target these viewers on the highest possible level of granularity. Early days are looking very favorable: this infrastructure allowed brands to reach 40 percent more unique viewers without spending an extra dime, while reducing the frequency with which an ad was shown 30 percent. So, advertisement is becoming less irritating for viewers and providing an advertising value of up to three times more for advertisers. No wonder marketers are all agog over it.
Roku’s Stock Gets a Big Boost
The market went wild for the news, and Roku’s stock was the star of the show. Investors are clearly thrilled about what this means for Roku’s future in the fast-growing CTV space. “This partnership is a huge vote of confidence in Roku’s role as a leader in streaming,” said Roku CEO Anthony Wood. “We’re teaming up with Amazon Ads to make it easier for brands to reach the millions of people who love streaming their favorite shows.”
This deal builds on Roku’s already strong lineup of ad partners, like The Trade Desk, Yahoo, and Google, while giving its direct sales a shiny new edge. It’s a bold move that shows Roku’s ready to play ball with the biggest names in tech.
A Ripple Effect in the Industry
Not everyone’s celebrating, though. The Trade Desk ($TTD) took a hit, with its stock dropping 3% as investors worried that Amazon’s DSP might steal some of its thunder. It’s a reminder that in the world of digital ads, one company’s win can shake things up for others. Still, Roku’s partnership with Amazon is a clear sign that big players are doubling down on CTV as the future of advertising.
Challenges and Opportunities Ahead
Roku’s been on a roll, with revenue growing 17.3% over the past year, but it’s not all smooth sailing. The stock can be a bit of a rollercoaster (with a beta of 1.96, for the finance nerds out there), and analysts don’t expect profits just yet. Plus, Roku’s share price is still a ways off its 2021 highs. But this deal with Amazon Ads is a huge step forward, showing that Roku’s not just keeping up—it’s setting the pace in the streaming wars.