Why Roku Stock Got Clobbered on Wednesday
Shares of Roku (NASDAQ: ROKU) got clobbered Wednesday, sinking as much as 10.2% early in the day. As of 11:11 a.m. ET, the stock was still down 9.6%.
The catalyst that sent the streaming pioneer lower was an unfavorable ruling in a patent infringement case and a couple of price target reductions by Wall Street analysts -- but the news isn't as bad as it seems.
The U.S. International Trade Commission (ITC) reached a decision in a dispute between Roku and Universal Electronics (NASDAQ: UEIC), a maker of universal remotes. In a mixed ruling, the ITC found that the remotes used by several Roku products -- primarily older versions of its Soundbar and Roku Ultra streaming device -- infringed on Universal's patents. As a result, the ITC issued an import ban on the products at the heart of the case.
Source Fool.com
