Courtesy of Roku
Guggenheim Securities believes that stocks have less potential because of the growing competitive threats of tech giants.
The story back. The action Roku (ticker: ROKU) has more than doubled in 2019 thanks to an impressive growth in the number of users and profits. The company sells video streaming equipment and licenses the use of its operating system to TV manufacturers, allowing consumers to watch content on the Internet.
What's up. Michael Morris, an analyst at Guggenheim Securities, lowered his rating on Roku shares on Thursday, bringing it to Buy's Neutral, due to growing competition from
Last week, Apple unveiled its Apple TV + service and its Apple TV channel offerings.
"We believe that the Apple video product unveiled on March 25 represents an additional risk to Roku's active user base (even though the platform includes The Roku Channel) while the
On-demand video advertising (AVOD) increases competition, "he wrote.
Roku shares fell 8.4% Thursday to $ 62.82 on Thursday. The company did not immediately respond to a request for comment.
According to the analyst, Roku's shares are valued at around $ 300 per active account, which means that a "significant portion" of its future value is already discounted in its high price.
Look forward. Morris lowered its Roku stock price target from $ 77 to $ 72, an increase of 11% from the current price.
Write to Tae Kim at [email protected]