Why Roku Stock Was Falling Earlier This Morning
Shares of Roku (NASDAQ: ROKU) were down 7.2% at 10:31 a.m. ET on Thursday. Positive company news around the launch of its new smart-home products with Walmart and the launch of The Roku Channel in Mexico was washed out by negative news on the economy.
The Consumer Price Index rose 0.4% in September, or 8.2% for the year, which was higher than analysts expected and much higher than the Federal Reserve's 2% target. The news was disappointing for market traders who were hoping for a deceleration in the rate of inflation and, therefore, an end to rising interest rates.
The slowdown in the advertising market this year has sent Roku's share price down 78% year to date. However, the Walmart news and expansion in Mexico could be huge and position Roku for more growth over the long term.
Source Fool.com
