Why Roku Stock Slumped on Tuesday
Shares of Roku (NASDAQ: ROKU) turned lower Tuesday, declining as much as 5.8%. As of the market close, the stock was still down 3.4%.
The catalyst that sent the streaming pioneer tumbling was a prediction by a Wall Street investment bank regarding the near-term future of the ad industry.
If a recession occurs, it could cause Roku's revenue to fall next year, according to a report by analysts from William Blair. They predict a decline in overall ad spending in 2023. Fears of a potential recession are fueling a pullback in global advertising spending. The firm forecasts it will decline between 2% and 8% next year.
Source Fool.com
