Why Roku Stock Fell 31.5% Last Month
Shares of Roku (NASDAQ: ROKU) fell 31.5% in December 2022, according to data from S&P Global Market Intelligence. This was the eleventh time Roku's stock price dropped on a full-month basis in 2022, with the clean sweep prevented by a 6.9% uptick in November. December's plunge was also the sharpest price reduction of the year, ahead of a 28.1% drop in January. All told, Roku shares fell 82.2% last year.
Within the month of December, Roku shares fell more than 5% in a single day on four occasions. Two of those downbeat days hinged exclusively on troublesome macroeconomic reports that slapped high-octane growth stocks like Roku across the entire stock market. The other two also had the drone of inflation fears in the background, but Roku's price drops were accelerated by bearish notes from Wall Street analysts.
The inflation worries are relevant to Roku's business since the media-streaming technology expert collects some revenues from digital advertising. Online ad sales struggled last year as ad buyers, both large and small, saw diminishing returns on their marketing investments, and therefore tightened their ad budgets.
Source Fool.com
