Roku Got Rocked but Should Bounce Back
There was plenty of fallout on Tuesday following Apple's (NASDAQ: AAPL) surprising move to price its upcoming streaming-video service aggressively. Apple TV+ will hit the market in November at $4.99 a month, half of what some were expecting. It will also offer buyers of new Apple devices a free one-year subscription to the service.
It's easy to see why Apple's promotional pricing took its toll on Netflix (NASDAQ: NFLX) and Disney (NYSE: DIS), with each stock down 2.2% in Tuesday's trading. Whether Apple is disrupting the value proposition of premium streaming platforms or locking up anyone buying an iOS or Mac for at least a year, Netflix and Disney can't be pleased. However, the real loser in this arena was Roku (NASDAQ: ROKU), as its stock took a 10.5% hit on Tuesday.
Image source: Roku.
Source Fool.com
