Roku shed one-seventh of market cap as Morgan Stanley warns of extreme turbulence


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Roku shed one-seventh of market cap as Morgan Stanley warns of extreme turbulence

The high-flying shares of US-based media streaming player, Roku Inc., that allows users to integrate a number of media streaming platforms such as Netflix Inc., Disney+ and Apple TV+ which in effect had sliced a large sum of US cable TV subscribers, nosedived as much as 15 per cent in pre-market trading on Monday, the 2nd of December 2019, after the leading US lender Morgan Stanley analysts had raised an alarming bell for the video streaming company and demoted its rating adding that the media streaming firm’s revenue and profit would more likely to take a heavy header by 2020.

Besides, while this report is being prepared, December 2nd, GMT. 19.10, share prices of San Jose, CA-based manufacturer of a swath of digital media players for multiple video streaming platforms, was trading 12.82 per cent down to $139.84 after being pummelled as much as 16.68 per cent to $133.77 per share in morning US trading hours.

In point of fact, latest sell-off of Roku Inc. shares comes over the heels of comments from a Morgan Stanley analyst, Benjamin Swinburne, who slashed his price target for Roku Inc. to $10 to $110 per share and rated the San Jose, CA-based company as “underweight” from an earlier “equal-weight,” adding that a global media streaming industry still dominated by the media streaming pioneer Netflix Inc., would likely to face off an “overall exuberance over all things” ahead of a launch of a number of heavy-money streaming media services such as Apple Inc.’s Apple TV+ and HBO entertainment’s HBO Max.