Roku Inc. rubs out 16 per cent of market cap after mediocre Q3 earnings’


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Roku Inc. rubs out 16 per cent of market cap after mediocre Q3 earnings’

On Thursday, the 7th of November 2019, the San Jose, CA-based American video streaming company, shed as much as one-sixth of its market valuation after the company’s quarterly earnings’ report had met with steep criticism as investors failed to digest its sky-high valuation.

Nonetheless, despite Thursday’s (November 7th) retreat, the US-based media streaming giant, which had lured away hundreds of thousands of US cable television viewers to media streaming pioneers likes of Netflix Inc.

and Disney+, share prices of Roku remained more than 300 per cent higher this year. However, despite Thursday’s (November 7th) shocking downsize of its market cap, 13 out of a Wall St. analysts’ poll consisted of 17 economists and reporters had still been vouching in favour of a Roku share ‘buy’ rating amid growing competition in the media streaming industry with the launches of HBO Max and Apple+, while four of them had given a ‘sell’ rating and other two remained neutral, as one of the two analysts who remained neutral on Roku Inc.’s share price outlook, Wedbush’s Michael Pachter cautioned in a client note late on Thursday (November 7th), “We applaud management for driving substantial growth on a sound business model. However, we think shares are currently overvalued and expect volatility to persist. ”