Is Roku a Buy at $100?
Since reaching over $170 a share early in September, Roku (NASDAQ: ROKU) has fallen hard over the past three weeks, dropping more than 41% to under $100 on Friday. It's been a colossal drop for a company that looked like it could do no wrong this year, especially after an impressive earnings beat in its most recent quarter.
In early September, Roku was trading at all-time highs and looking unstoppable -- until news came out that Apple would be launching its own TV service, expected to launch around the same time that Walt Disney is set to make its own Disney+ subscription available. And at a price of just $4.99 per month, Apple is undercutting the competition. Then, if that wasn't bad enough, there was news that Comcast would also be launching a streaming service in early 2020. A few days later, analysts from Pivotal Research began coverage of Roku and gave it a sell rating, which prompted yet another drop in price.
The sheer amount of streaming news lately has definitely made investors think twice about Roku, especially given that the stock had risen a mammoth 394% during the first eight months of the year.
Source Fool.com
