No, Walmart Doesn't Want to Compete With Roku. It's Going After 1 Rival Worth $1.75 Trillion
On Feb. 13, connected TV platform company (NASDAQ: ROKU) shed hundreds of millions from its market capitalization following a report that retail giant Walmart (NYSE: WMT) is trying to buy TV manufacturer Vizio (NYSE: VZIO) for $2 billion. Based on the market's knee-jerk reaction to this news, investors are clearly worried about the competitive threat for Roku.
A week later, Walmart officially announced its deal to acquire Vizio for $2.3 billion. Roku stock dropped again on the news.
There may be good reason for investors' concern. Roku generates revenue in two main ways: device sales and platform revenue. On the hardware side of things, Roku sells smart TVs and accessories with streaming capabilities. Last year, Walmart was a top-three retailer for Roku's devices.
Source Fool.com
Roku Stock
Currently there is a rather positive sentiment for Roku with 28 Buy predictions and 7 Sell predictions.
With a target price of 93 € there is a hugely positive potential of 63.16% for Roku compared to the current price of 57.0 €.
