Roku Stock Sinks on Dismal Results, Withdrawn Forecast

The streaming name reported disappointing second-quarter earnings results

Roku Inc (NASDAQ:ROKU) is plummeting today, down 24.8% at $64.11, amid a flood of post-earnings bear notes. The streaming name posted disappointing second-quarter results and withdrew its full-year growth rate estimate, as ad spending slows down. Susquehanna downgraded the stock to “neutral” from “positive,” with a price-target cut to $70 from $200, while no fewer than seven other analysts slashed their price targets as well. 

Today’s negative price action had ROKU trading at a fresh two-year low of $62 earlier. The stock had been mostly middling between the $80 and $100 levels for the past few months, with overhead pressure at the 80-day moving average. Year-to-date, the equity is down 71.6%. 

Options volume is running at nine times the intraday average. So far, 78,000 calls and 123,000 puts have crossed the tape. Expiring today, the weekly 7/29 60-strike put is the most popular, with new positions being bought to open there. It’s also worth noting that Roku stock has landed on the short sell restricted (SSR) list today. 

Of the 32 analysts in coverage, 13 carried a “hold” or worse rating on Roku stock coming into today. Meanwhile, short interest makes up 6.3% of the stock’s available float. 

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