Roku Stock (YEAR) – Get a free report plunged 8% on Wednesday after Wells Fargo analyst Steve Cahall lowered his price target for the company. Cahall, citing concerns about a weakening trend in the advertising market for the fourth quarter, lowered his price target from $84 to $70 and warned that Roku could see some pullback.
“We heard at our Ad Day last month that dispersion remains weak quarter over quarter, while Roku will also face reduced media and entertainment spending due to the ongoing strikes in Hollywood,” he wrote, adding that expects a weaker fourth quarter. orientation too.
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The analyst also projected that revenue per streaming hour will fall 8% year over year in the fourth quarter, and that platform revenue would reach $780 million, below the Street consensus.
Although Roku stock is down about 17% over the past quarter, the company’s stock is up more than 50% over the year.
Roku shares rose more than 2% after the market opened.
Analysts, on average, have given Roku a “hold” rating, with an average price target of $84.43.
For Ark Invest’s Cathie Wood, the drop presented an opportunity to acquire more shares of one of her company’s favorite stocks. Ark Innovation Flagship ETF acquired 104,393 shares of Roku on Wednesday, a purchase worth about $6.5 million.
This brings Roku’s total stake in the fund up to 7.62% of the fund, worth just under $500 million.
The company will announce its third quarter results on November 1.
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