Why Roku Stock Fell This Week Following Buyout Rumors

Week to date, shares of Roku (NASDAQ: ROKU) were down 2.9% as of 10:57 a.m. ET on Friday, according to data provided by S&P Global Market Intelligence. The stock was up more than 16% for the week on Wednesday after rumors started circulating that Netflix (NASDAQ: NFLX) might be interested in buying the streaming platform.

However, by the end of the week, inflation fears and worries over the economy weighed on the stock's performance. The stock has fallen 63% year to date as Roku wrestles with supply chain issues for its connected-TV devices and headwinds in the streaming service market.

Ongoing supply chain disruptions have caused a spike in TV prices in the U.S., which has contributed to Roku's slowing revenue growth in recent quarters. This has been a key concern for investors and explains why the stock was already falling year to date.

Continue reading

Source Fool.com