From Nasdaq:

Roku’s stock fell nearly 17% after they forecasted a larger first-quarter loss than expected. The company struggles to compete with big names like Netflix and Amazon for advertising dollars. Walmart’s possible acquisition of rival Vizio could further challenge Roku’s market position. This could lead to significant challenges to Roku’s incumbency, according to an analyst.

Roku’s forecasts of a first-quarter loss of 90 cents per share exceeded analysts’ expectations of a loss of 69 cents. The company also faces challenges from slow spending on media and entertainment (M&E) promotions. The average rating of 33 brokerages on the stock is “hold”, with a median price target of $83.43.

Roku’s exclusive deal with Walmart to sell products fulfilled by the retailer on its devices is also at risk due to Walmart’s interest in Vizio. The company is also facing slow spending on media and entertainment (M&E) promotions due to limited releases as a result of the Hollywood strike last year.

If premarket losses hold, Roku’s shares are on course to lose more than $2 billion in market value, based on its latest trading price of $78.76. The company is also facing challenges due to the slow spending on media and entertainment (M&E) promotions.



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