Shares of Roku and Trade Desk were rising Monday after an analyst suggested the two companies should merge. In a note Monday, Guggenheim analyst Michael Morris keyed in on Trade Desk’s announcement of a new operating system for connected TVs,

Over the past few days, however, Roku stock has been on fire, notching 28% gains in less than a week (as of this writing) as investors scramble to buy the stock. The rally was sparked by an unlikely catalyst, and if Wall Street is to be believed, there could be much more to come.

Guggenheim suggested that a hypothetical merger between The Trade Desk (NASDAQ:TTD) and Roku (NASDAQ:ROKU) could work to each other's strengths and ambitions TTD and ROKU were up more than 5% in early open market trading on Monday.

As a result of being "mostly" just an OS, Roku has the most third-party integrations with streaming TV OEMs. In the release, The Trade Desk said it would exclusively integrate with third-party hardware makers, as it has no plans to make its own streaming device.

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The Trade Desk’s growth in multiple sectors is impressive, but its valuation is a concern. Find out why TTD stock may not be a bargain at current levels.

Trade Desk shares are moving higher Monday amidst speculations regarding a potential merger with Roku sparked by a report from Guggenheim analysts. Here's what you need to know.

Guggenheim says Trade Desk and Roku could benefit from a merger. Roku stock gained more than 10% following the investment firm's note.