Why Roku Stock Plummeted Again Today
Growth stocks got hit with another round of big sell-offs today, and Roku (NASDAQ: ROKU) was once again caught up in the pullback. The streaming-video specialist's stock ended Tuesday's daily trading session down roughly 9.3%, while the S&P 500 and Nasdaq Composite indexes ended the day down 1.4% and 2%, respectively.
Tech stocks soared last week after comments from Federal Reserve officials suggested that the central banking authority could take a softer approach to raising interest rates this month. However, thus far, the resulting optimism seems to have been short lived. Following last week's big gains, investors are once again taking a more cautious stance on the market, and Roku stock has now given up all the gains it posted across last week's trading.
A combination of rising bond yields, new business data, and concerns that the Federal Reserve will continue to raise interest rates until the economy is pushed into recession in order to fight inflation has prompted another stark pullback for the broader market this week. Paramount Global also warned that investors should expect lower advertising revenue in the fourth quarter, and comments suggesting a tougher outlook for the streaming-based ad space likely also prompted additional selling pressures for Roku stock.
Source Fool.com
