Why Roku Stock Was Down This Week
Week to date, shares of Roku (NASDAQ: ROKU) were down 13% as of 11:30 a.m ET on Friday, according to data provided by S&P Global Market Intelligence. The stock sold off on more concerns about the economy, since the company makes most of its money from advertising.
Several analysts downgraded the stock in November, but earlier this week, one analyst weighed in with a bullish note that lifted the stock.
Many analysts are cutting their long-term growth estimates for Roku. While the company is still growing revenue at double-digit rates, it doesn't seem to be keeping up with the overall spending across connected-TV advertising platforms. The connected-TV ad market is expected to grow 33% this year, but Roku's third-quarter platform revenue grew only 15% over the year-ago quarter.
Source Fool.com
