Down 49% Since Record Highs, Is Roku Stock a Buy Right Now?
The stock markets witnessed a trading bloodbath over the past week. Just on March 9, major U.S. indexes such as the Dow Jones and S&P 500 fell close to 8% after crude oil prices fell by 30% that day. In the past month, the indexes have fallen about 20% and into bear market territory, driven by the world's response to the rising number of COVID-19 cases caused by the novel coronavirus.
This has meant that growth stocks such as Roku (NASDAQ: ROKU) have experienced a strong pullback. Growth stocks trade at high valuations and are significantly more volatile in a market sell-off.
At the time of writing, Roku shares were trading nearly 49% below record highs. Is this an opportunity for investors to buy the dip? Given the company's stellar growth metrics and total addressable market, Roku stock seems like a solid bet for contrarian investors.
Source Fool.com
