Roku Inc.'s stock experienced a significant 5.06% plunge during Friday's intraday trading session. This sharp decline can be attributed to multiple factors highlighted by analysts and industry experts.
A key driver behind the sell-off was a downgrade from MoffettNathanson, which lowered its rating on Roku to "Sell" from "Neutral" and reduced the price target to $55 from $75. The brokerage firm expressed concerns that the market is too optimistic about Roku on several fronts.
One major issue cited by MoffettNathanson is the increasing competition Roku faces, particularly from Walmart's recent acquisition of Vizio, a rival streaming platform. Analysts warned that this deal poses a near-term risk of retail share losses for Roku. Furthermore, the brokerage firm stated that the list of potential credible buyers for Roku seems to be devoid of any real names, diminishing the possibility of a potential acquisition that could boost the company's prospects.
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