Roku's Analysts Are Changing Their Forecasts On The Stock - Here's Why
Portfolio Pulse from Anusuya Lahiri
Benchmark analyst Daniel Kurnos and Wedbush analyst Michael Pachter have updated their forecasts for Roku Inc (NASDAQ:ROKU), with Kurnos maintaining a Buy rating and a $115 price target, and Pachter maintaining an Outperform rating but lowering his price target from $120 to $80. Both analysts adjusted their revenue and EPS projections for upcoming quarters, citing various factors including competition fears, market share gains, and the shift of ad dollars from linear to digital-connected TV. Roku's stock has plunged over 35% year-to-date, but it is included in the ARK Next Generation Internet ETF (NYSE:ARKW) and ARK Innovation ETF (NYSE:ARKK).
April 19, 2024 | 4:40 pm
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NEUTRAL IMPACT
Roku Inc receives mixed analyst forecasts with adjustments in revenue and EPS projections, reflecting both challenges and growth opportunities in the digital ad space.
The mixed analyst forecasts with Kurnos maintaining a positive outlook and Pachter lowering his price target reflect uncertainty and varied perspectives on Roku's future performance. The adjustments in revenue and EPS projections, along with the mention of competition fears and market share gains, suggest a complex outlook that could lead to neutral short-term price movement as investors digest these updates.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
ARK Innovation ETF, holding Roku, may be affected by Roku's stock performance and the recent analyst updates, influencing investor sentiment.
ARKK, which includes Roku among its holdings, may experience negative short-term impacts due to Roku's substantial year-to-date decline and the recent analyst forecasts. These developments could affect investor sentiment towards ARKK, as Roku's challenges and the analysts' mixed outlooks might influence the ETF's performance.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
ARK Next Generation Internet ETF includes Roku in its portfolio, potentially impacting its performance given Roku's recent stock plunge and analyst forecasts.
Given Roku's significant year-to-date plunge and its inclusion in ARKW's portfolio, the ETF could face negative short-term impacts. The mixed analyst forecasts for Roku, a constituent company, might contribute to cautious investor sentiment towards ARKW, especially if Roku's performance continues to weigh on the ETF's overall returns.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70