Shares of (NASDAQ: ROKU) have fallen sharply since the company posted disappointing financial results last month. The streaming video pioneer's stock has fallen in nine of the past 11 trading days, shedding a third of its value in the process.

Analysts have been cooling on Roku following the uninspiring fourth-quarter report. The latest Wall Street downgrade, coming from Steven Cahall at Wells Fargo, didn't even lead with the rough financial performance in lowering his rating on Roku from equal weight to underweight last week. His biggest bone of contention is reassessing Roku's valuation in light of Walmart's (NYSE: WMT) entry into this market after announcing the acquisition of Vizio (NYSE: VZIO).

Cahall is slashing his price target on Roku from $77 to $51, largely based on Walmart's $2.3 billion deal to acquire Vizio. Until now, Vizio has been a fringe player in the realm of smart-TV operating system platforms. The analyst thinks Walmart's deal places a lower valuation for the connected TV market. I disagree.

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Source Fool.com