Roku Inc (NASDAQ: ROKU) shares are plummeting down over 25% today after disappointing Q4 results. And ROKU stock is down more than 53% year-to-date and 78% below its 52-week high.
Yesterday, the trading volume for ROKU stock was 3x higher than the prior 30-day average.
While Roku’s Q4 revenues disappointed, the company displays strong financials, data and advertising fundamentals. Its earnings beat analyst estimates but supply chain disruptions combined with revenue miss, streaming hours and ARPU below consensus were enough to spook investors. Plus, Q1 guidance came below Wall Street estimates.
Roku is a pure-play TV streamer equipment company. Its product categories include Roku audio, Roku TVs, and Streaming Players.
Financial Metrics Today
Market Cap: $14bn
Fully Diluted Shares Outstanding: 142.4m
These financial metrics indicate the company is still overvalued at its current share price of $108. Neverthless, analyst consensus has an Overweight rating on the stock with a target share price of $200.92.
ROKU Stock: $210 Price Target from Deutsche Bank Research
Analyst Jeffrey Rand of Deutsche Bank Research downgraded his ROKU stock share price target to $210 (from $300) on 18 February.