Here's Why Roku Stock Has Been Getting Pummeled
It's been a rough few trading days for streaming TV company (NASDAQ: ROKU). The growth stock has been hammered since last week's earnings report, declining about 30%. This is a big setback to what started to look like a recovery in its stock price last year when shares rose 125%. A rough start to 2024 means the stock is still floundering at levels far below where it traded in years past; shares are down 85% over the last three years.
So, what gives? Why are investors moving on from this beaten-down tech stock? It boils down to fears about its well-capitalized competition. Investors are concerned that aggressive investment in the connected-TV space from deep-pocketed tech companies like Apple, Amazon, Alphabet, and now potentially even Walmart (NYSE: WMT) could make the operating environment increasingly difficult for Roku.
Perhaps providing clues to the competitive environment, Roku has consistently reported losses on an annual basis. Its total net loss in 2023 exceeded $700 million, or $5.01 per share. This is worse than the company's $3.62 loss per share in 2022. Further, the company said it expected a $90 million loss in the first quarter of 2024.
Source Fool.com
Roku Stock
Currently there is a rather positive sentiment for Roku with 29 Buy predictions and 7 Sell predictions.
With a target price of 93 € there is a hugely positive potential of 70.99% for Roku compared to the current price of 54.39 €.
