What happened Shares of streaming service platform Roku (NASDAQ: ROKU) jumped 5% Tuesday as of 12:15 p.m. EST. The stock dropped a similar level Monday after it was reported that Roku is close to acquiring the video catalogue of short-form streaming company Quibi. So what The thought of Roku entering the content business spooked some investors, but a Wells Fargo analyst today gave shares an overweight (buy) rating, with a $414 price target. The stock closed Monday at $317.90 per share. Image source: Getty Images. Now what The bullish opinion from Wells Fargo (NYSE: WFC) analyst Steve Cahall is based on his belief that momentum in Roku's advertising-video-on-demand (AVOD) business will accelerate and provide "operating leverage upside," according to thestreet. Cahall also doesn't feel the potential acquisition of Quibi would be a negative catalyst. He said, "A deal for Quibi content is supportive of better ARPU [average revenue per user] growth." But creating content can be expensive, if that's the direction Roku is heading with a Quibi deal. It's possible that acquiring the content catalogue would not lead to a larger content-creation strategy. With Quibi shutting down after just six months of operation, Roku could be able to buy the content at a good price. Investors will have to wait for management to share the company strategy should the acquisition be announced. So far, Roku management has been a trailblazer in the blossoming television streaming market. It would be wise to continue to trust its judgment. 10 stocks we like better than RokuWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Roku wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Howard Smith owns shares of Roku. The Motley Fool owns shares of and recommends Roku. The Motley Fool has a disclosure policy.Source