|Day's Range||1.6000 - 1.8400|
Pivotal Research initiated its coverage of Roku with a "sell" rating amid news of increasing competition in the streaming space. Yahoo Finance's Jared Blikre joins Akiko Fujita on 'The Ticker' to discuss.
Shares of Roku Inc. plunged Friday, putting them on track for their worst-ever weekly performance, as investors continued to express concern over increasing competition and an extreme valuation.
Streaming video platform Roku received a bearish assessment from a Wall Street analyst on Friday, causing Roku stock to tumble below its 50-day moving average line, a key support level.
Roku (NASDAQ:ROKU) news for Friday about a "Sell" rating for the stock is hitting ROKU hard.Source: Michael Vi / Shutterstock.com The sell rating for Roku stock comes from Pivotal Research analyst Jeffrey Wlodarczak. Wlodarczak only just initiated coverage of ROKU stock today and that "Sell" rating isn't doing it any facors. In that same line, a price target of $60 per share is also ill Rokus news. It sits 55% below the stock's closing price on Thursday.So why exactly is Wlodarczak so pessimistic about ROKU stock? It all comes down to competition. Roku is going to be dealing with much more of that in the near future as more and more companies announce plans for their own set-top boxes.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe problem for Roku is that is has strong competitors in the market all making announcements recently. That includes Comcast (NASDAQ:CMCSA) offering free Xfinity Flex streaming devices to internet customers. There's also concerns from recently-announced streaming efforts being made by Apple (NASDAQ:AAPL) and Facebook (NASDAQ:FB), reports CNBC. * 7 Triple-'F' Rated Stocks to Leave on the Shelf While these concerns aren't helping ROKU stock, it's worth noting that this isn't the general consensus among analysts. An average of 17 analysts are carrying an "Overweight" rating for the stock. They also have an average price target of $130.69, which is 2% below yesterday's closing price for ROKU.ROKU stock was down 18% as of Friday afternoon, but is up 311% since the start of the year.As of this writing, William White did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Triple-'F' Rated Stocks to Leave on the Shelf * 10 Excellent Stocks to Watch for 2020 and Beyond * 7 Consumer Stocks to Buy in an Uncertain Market The post Roku News: Why ROKU Stock Is Falling Today appeared first on InvestorPlace.
Roku Inc (NASDAQ: ROKU) shares have experienced a steady sell-off this week, culminating in a 20% drop on Friday. On Wednesday, The Verge reported that Facebook, Inc. (NASDAQ: FB) is preparing to launch a clip-on camera for use in video calling, content co-watching and AR gaming. Facebook’s Portal TV could be a major threat to Roku devices.
Investing.com - Roku shares were hit hard Friday after a Wall Street analyst rated the stock a sell and slapped it with a $60 price target.
(Bloomberg) -- Roku Inc. shares suffered their second double-digit percentage drop of the past three trading days on Friday, as concerns over competition once again pressured a stock that has quadrupled since December.Shares of the the video-streaming platform company sank as much as 18% in midday trading, its biggest one-day percentage loss since November, dropping on volume that already eclipsed its daily average volume over the past three months. The stock was trading at a six-week low, and on track for a weekly drop of more than 25%.With the decline, Roku has lost about 35% of its value since a record close hit earlier this month. Even with the drop, however, shares remain up more than 300% from a December low as investors see the company as a major beneficiary to a shift toward streaming video.Friday’s decline was sparked after Pivotal Research Group started coverage on Roku shares with a sell rating and Street-low price target of $60, a target that represents downside of more than 55% from the company’s Thursday close.Analyst Jeffrey Wlodarczak wrote that shares were “dramatically overvalued” after the 2019 rally, and that he sees “dramatically more competition emerging.”Pivotal’s comments spoke to an issue that also weighed on Roku on Wednesday, after Facebook Inc. debuted a new model of its Portal video device that will have access to some streaming services, and Comcast Corp. said its Xfinity Flex box would be included with Internet-only subscriptions.Wlodarczak sees such developments as a harbinger of things to come. He anticipates “dramatically more competition,” including from “big boys” like Comcast, whose plan “will inevitably be copied by other distributors”, and “likely drive the cost of [over-the-top video-streaming] devices to zero.”These rivals have “massive leverage,” he wrote, and are likely to make growth “much more difficult.”This bearish view is a minority opinion. Pivotal is only the second firm to recommend selling Roku shares, according to data compiled by Bloomberg, compared with the stock’s nine buy ratings and the five firms with a neutral view on the stock.As occurred following the week’s previous drop, Roku bulls defended the name as shares declined. Needham analyst Laura Martin called it “the gold-standard pure play” of video streaming, one that was “underscored by flawless (our word) execution” and a continually expanding total addressable market.The firm reiterated its buy rating and $150 price target in a note to clients. “Even if Roku’s hardware sales went to zero TOMORROW,” the financial downside “would be minimal” as it accounts for just 5% of its gross profit, Martin wrote (emphasis in original).Separately, Oppenheimer on Friday affirmed its outperform rating despite the “pending SVOD war,” referring to streaming video on demand. “Roku’s U.S. strategy play-book should allow fast international market share,” the firm wrote. “Many new services are playing catch-up in a crowded market, with limited scaled platforms to add [subscribers].”The firm raised its price target to $155 from $120, and was at least the second firm this week to boost its view on Roku’s international potential, following a similar move from Guggenheim on Wednesday.Currently, analysts expect full-year revenue growth of about 48% for 2019, and 36% growth in 2020, according to data compiled by Bloomberg. According to a Bloomberg MODL forecast, Roku is expected to have about 36.2 million active accounts at the end of 2019.To contact the reporter on this story: Ryan Vlastelica in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Catherine Larkin at email@example.com, Steven Fromm, Morwenna ConiamFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Shares of Netflix Inc. dropped 5.7% in midday trading Friday, to pace all S&P 500 decliners, after a report that that the streaming-video company would boost spending in the United Kingdom to fend off competition. The stock, which has now tumbled 9.5% over the past three sessions, was on track for the lowest close since Jan. 2. The Financial Times reported, in a report titled "Netflix to boost £400m UK spending as streaming wars intensify," the FT said it was ramping its investment ($499.6 million) in British TV programs such as "The Crown" and "Sex Education" as spending on the streaming wars creates and boomtime for producers. Netflix's current losing streak started on Wednesday, after Comcast Corp. announced a new streaming service called "Peacock" and said it would start giving away its Xfinity Flex streaming-media player for free to internet-only subscribers. Netflix's stock has tumbled 26% over the past three months, while Comcast shares have climbed 6.9% and the S&P 500 has gained 1.9%.
Roku Inc (NASDAQ: ROKU ) will have a tough time competing in the streaming video landscape, as growing competition will push the cost of devices to "zero," according to Pivotal Research. The ...
The move comes as industry leaders worry that three years of reduced film-incentive funding is already drying up jobs.
Shares of Roku resume their decline after Pivotal Research Group initiates coverage on the company with a sell recommendation.
NBC Sports Group President Pete Bevacqua had just arrived at NBC’s ad sales tailgate on Waldron Deck outside of Soldier Field when a colleague thrust a cold can of Spotted Cow beer into his hand. It was two hours before kickoff of the Packers-Bears game that would start the NFL’s 100th season. NBC carried the Sept. 5 game, and Bevacqua wanted to take some time to press the flesh with advertising clients and see NBC staffers.
Internet television platform Roku on Thursday introduced a revamped lineup of streaming video players and improvements to its operating system. Roku stock rose after tumbling Wednesday.
Media giant Comcast Corporation (NASDAQ: CMCSA ) will begin offering internet customers a free over-the-top box set, but one Roku Inc (NASDAQ: ROKU ) analyst isn't worried about the new competitive landscape. ...
Video-streaming space gets increasingly crowded as Comcast and Facebook join the bandwagon. However, intensifying price war and fight for exclusive rights are threats.
Media and communications company Comcast Corp has agreed to a distribution deal with digital global sports provider DAZN Group, further blurring the line between traditional television operators and the streaming services that have disrupted them. Starting on Thursday, Comcast's internet customers who use its Xfinity Flex box for streaming apps - its answer to the Amazon Fire Stick and Apple TV - will gain access to the DAZN app, according to Ben King, DAZN's SVP of Global Distribution and Business Development.
Netflix co-founder says competitive streaming pricing is a "great thing" as Apple TV+, Disney+ prep November launches