Roku IPO: Shares up 30 percent in morning trading

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The company priced its 18 million share offering at $14 per share on Thursday, the highend of the expected range of between $12 per share and $14 per share. In fiscal year 2016, it generated $398.6 million in revenue, an increase of 25% from 2015.

Shares of Roku rose in their first morning on the market, as the entertainment technology company made its public debut on Thursday.

Roku's S1 filing reveals that the video and audio streaming device company now has 15.1 million active accounts, up 43 percent from a year ago.

Roku dongles and set-top boxes offer its users access to channels that are free such as YouTube, channels that are subscription based such as Netflix, and cable channels such as HBO and CNN. The startup generated a net loss of $24.2 million on revenue of $199.7 million during the first six months of the year, according to the company's filing with the Securities and Exchange Commission.

The company brought in $399 million in revenue in 2016, but lost $43 million.

In an SEC filing, the company disclosed it had about 15.1 million activge accounts and has streamed 6.74 billion hours of content.

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The cash Roku raised today will be used to compete against a host of tech giants. Roku has also seen increasing competition from companies like Apple, Google and Amazon, which all sell their own streaming TV devices.

Apple has its Apple TV device, Amazon has the Fire TV Stick and Alphabet has the Google Chromecast device.

Even though CEO Wood isn't anxious about his company's ability to compete, investors will have to decide if Roku's market share and option-oriented platform are enough to set the streaming device maker apart.

However, there are some pitfalls to be wary of: the online streaming industry has a few very big players involved and Roku might be considered a small boat on this very big ocean.

It could become the mother of all technological revolutions.

This places a value on Roku of $1.3 billion.

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