Why Roku Stock Fell Today
Shares of Roku (NASDAQ: ROKU) fell by as much as 5% today as investors digested a report that the company is expanding into original content. The Wall Street Journal reported yesterday that Roku is in talks to acquire Quibi's catalog following the start-up's spectacular failure last year. Quibi shut down just six months after launching.
Quibi had attracted considerable hype since it was founded by media industry legend Jeffrey Katzenberg and the start-up had spent lavishly to get many prominent celebrities to star in its shows. Meanwhile, Digiday reported last March that Roku was contemplating jumping into original content. Following Quibi's shutdown, that content could find a home on Roku's dominant video-streaming platform.
Image source: Roku.
Source Fool.com
