Roku Stock Is Down 35% in Less Than a Month -- Is This a Beaten-Down Bargain to Buy Now?
On Feb. 12, (NASDAQ: ROKU) stock was trading at nearly $100 per share. As of this writing, just 11 days later, it trades at about $63 per share.
Perhaps the biggest issue contributing to Roku's price drop right now is Walmart's (NYSE: WMT) planned $2.3 billion acquisition of Vizio (NYSE: VZIO). Roku stock plunged on both the rumor of the deal and the subsequent official announcement on Feb. 20.
Roku lost ground in February for other reasons as well. The company's main source of revenue is its platform revenue, which largely consists of digital advertising. It reported fourth-quarter and full-year financial results on Feb. 15, showing an encouraging 10% growth in platform revenue in 2023. However, its gross margin for platform revenue dropped from 56% in 2022 to 52% in 2023.
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 €.
