Myfxtools
  • Login
  • Expert Advisors
  • Forex Signals
    • Best Forex Signals
  • Forex Brokers
  • Forex Trading
    • Forex Guides
    • Analytical Tools
    • Charting Software
  • Crypto Trading
  • Portfolios
No Result
View All Result
  • Expert Advisors
  • Forex Signals
    • Best Forex Signals
  • Forex Brokers
  • Forex Trading
    • Forex Guides
    • Analytical Tools
    • Charting Software
  • Crypto Trading
  • Portfolios
  • Login
Myfxtools
  • Log In
Home News

Roku Stock Declines on Analyst Downgrade

by Myfxtools
December 15, 2023
in News
Share on TwitterShare on Facebook

Roku stock experienced a significant decline on Friday following a downgrade from analyst team MoffettNathanson. Concerns were raised that the shares of the streaming-media company had risen too quickly and too fast.

Led by Michael Nathanson, MoffettNathanson analysts downgraded Roku from Neutral to Sell on Friday. They also adjusted the earnings estimates for 2023 and 2024. Despite the downgrade, they increased their stock price target to $66 from $64.

During Friday’s trading, the stock declined by 6.5% to $96.24. However, it is important to note that Roku shares have risen by an impressive 136% this year.

This recent ratings adjustment is a reversal of the firm’s upgrade to Neutral at the end of October, which coincided with Roku’s better-than-expected third-quarter earnings report, showcasing positive revenue and active account figures.

In a Friday report, analysts explained their initial upgrade and subsequent downgrade: “We weren’t making a call on a stronger top-line; instead, after a ridiculous, undisciplined surge in expenses in 2021 and 2022, the company had taken meaningful cost actions to rein in expense growth, and we saw a path towards achieving profitability.”

It is necessary to highlight that the downgrade is not due to any change in the analysts’ view of the company’s fundamentals. Rather, it stems from concerns about the company’s valuation. Since Roku’s third-quarter results were announced on November 1, the shares have surged by 72%, according to Dow Jones Market Data.

MoffettNathanson stated in their report that even with their fairly optimistic forecast for adjusted earnings before interest, tax, depreciation, and amortization, they cannot justify the current stock levels in their valuation framework.

According to the firm’s research, Roku experienced significant revenue growth this year, primarily driven by content distribution sales. However, they anticipate that streaming subscription growth will continue to slow down, which will consequently impact content distribution revenue.

For Roku’s growth next year, the focus will be on Connected TV advertising, specifically ads that appear while streaming content. However, analysts believe that “better scaled players” such as Amazon Prime, Netflix, and Disney are likely to dominate the market share.

forex ea chart
Would you like to try out trading with an Expert Advisor?
Check Out Best Forex EAs Here
Tags: Analyst DowngradeConnected TV Advertisingrevenue growthRokuStreaming Media
Previous Post

Supporting Unpaid Family Caregivers: A Bipartisan Proposal

Next Post

Nissan Expands Research Ties with Tsinghua University in China

Next Post

Nissan Expands Research Ties with Tsinghua University in China

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

43 + = 47

Recent Posts

  • Investors Brace for Fallout if Powell Exits Early
  • Rupee Falls for Third Week Ahead of Key Global Events
  • Dollar Sags Weekly Despite Friday Rebound, Fed Eyed
  • UK Firms Lose Momentum as BoE Balances Inflation and Jobs
  • Turkish Central Bank Resumes Rate Cuts With Aggressive Move
  • About Us
  • Contact Us
  • Privacy Policy
  • Risk Disclosure
Myfxtools turns raw trade logs into verified dashboards and AI-driven insights - helping traders see, share, and sharpen their edge.

© 2025, Myfxtools. All rights reserved.

AI Strategy Insight is educational and not financial advice.

  • Expert Advisors
  • Forex Signals
    • Best Forex Signals
  • Forex Brokers
  • Forex Trading
    • Forex Guides
    • Analytical Tools
    • Charting Software
  • Crypto Trading
  • Portfolios

© 2025, Myfxtools. All rights reserved.

AI Strategy Insight is educational and not financial advice.

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In