Roku Stock Slumps on Analyst Call, but Sell Conclusion Is Faulty

As the leader in ad-supported streaming technology, Roku (NASDAQ: ROKU) has produced stunning growth this year, with its stock price surging 423% through Black Friday. By bypassing the original content war that has pitted the major streaming players against each other, Roku has carved out a profitable niche for itself by being agnostic and bringing thousands of streaming apps to its platform -- and to consumers.

The growth stock hit the skids on Monday, however, as an analyst turned bearish on it, sending shares down more than 16%. The analyst's argument is one we've heard before, and it's rather short-sighted. Let's look at what was said and why long-term investors will benefit by ignoring a short-term mindset.

Image source: Roku.

Source Fool.com